Budget changes reduce Manchester's targeted aid by $12 million for FY 2027

The New Hampshire House Finance Committee meeting on March 31, 2025, focused on significant changes to funding for municipalities, particularly affecting Manchester. The discussion highlighted a new limitation on targeted aid for municipalities with 5,000 or more students, capping funding at $3,750 per pupil. This change primarily impacts Manchester, which has seen a substantial increase in targeted aid, receiving over $30 million in the current biennium.

In fiscal year 2026, Manchester's funding is set to increase further, reaching a total of $42 million above its 2020 funding levels. However, the proposed changes will reduce Manchester's funding by $12 million in fiscal year 2027, creating a notable disparity in fiscal capacity among towns. This reduction is intended to balance the aid distributed to other municipalities that did not benefit from the previous per pupil funding increases.

The committee's discussions underscored the complexities of municipal funding and the challenges of ensuring equitable distribution of resources across different towns. The implications of these funding changes will be closely monitored as they could significantly affect Manchester's budget and educational resources in the coming years.