Extraordinary needs grant formula established for Alton Albany and Allentown schools

The New Hampshire House Finance Division convened on February 3, 2025, to discuss critical funding mechanisms for local education, focusing on the extraordinary needs grant and the hold harmless grant. These discussions are vital as they directly impact the financial resources available to various communities, particularly those with high poverty levels.

The extraordinary needs grant is designed to assist communities with a high ratio of property wealth to low-income students. The formula evaluates the equalized valuation per free and reduced (F and R) pupil, essentially measuring property wealth against poverty levels. For instance, Alton, which has a relatively high F and R pupil population of 20%, has a significant property valuation, resulting in it not qualifying for the grant. In contrast, communities like Albany and Allentown, which have lower property valuations, are eligible for smaller grants. Albany's grant amounts to $8,557 for its 33 F and R students, while Allentown is expected to receive a larger amount due to its lower property valuation.

The meeting also addressed the hold harmless grant, which ensures that communities do not receive less funding than they did in the previous fiscal year. For fiscal year 2026, the hold harmless grant will be set at 80% of the previous year's amount. This mechanism is crucial for communities that may have seen a decrease in funding due to changes in the funding formula. The hold harmless provision is a response to past funding cuts and aims to stabilize financial support for schools.

Overall, the discussions highlighted the ongoing adjustments in state education funding, with a notable increase in overall education spending by $193 million in the last budget cycle, despite a declining student population. This reflects a broader commitment to supporting educational needs across New Hampshire, even as specific funding elements like stabilization grants have been phased out.

As the committee continues to refine these funding formulas, the implications for local school districts remain significant, influencing their ability to provide quality education to all students. Further inquiries and discussions are expected as the committee seeks to address the evolving needs of New Hampshire's educational landscape.