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Rep. Luna introduces HB 772 to create foundation opportunity budgets for school funding
Summary
Representative David Luna introduced HB 772 to replace the current one-size-fits-all adequacy model with district-level "foundation opportunity budgets" and a new funding order that sets a modest local share first and then guarantees state funding to meet the budget.
Representative David Luna (Bow, Hopkinton) introduced House Bill 772 in the House Education Funding Committee on Jan. 28, proposing a systemic rewrite of how New Hampshire funds public education. The bill would (1) define the "opportunity for an adequate education" in terms of statewide student outcomes and statutory content standards, (2) require districts' budgets to be calculated as a "foundation opportunity budget" sufficient to raise every student to those statewide outcomes, and (3) change the funding flow so a modest local property tax share is set first and the state then guarantees the remainder.
Supporters said the approach targets resources where student needs and district capacity differ and reduces the regressivity in current funding. Rep. Luna told the committee the bill draws on the legislature's 2020 school-funding commission work and national models; he said it aims to shift from a formula that starts with state baseline dollars and asks locals to raise the rest, to one where a predictable local share is set and the state guarantees funding needed to reach the foundation budget.
Why it matters: The bill is a major structural proposal that would alter how adequacy is calculated, change the role of the statewide education property tax (SWEP), and affect municipal tax warrants. That combination could materially change town-by-town tax burdens and state education spending.
Committee members asked technical questions about equalization, timelines, and how the proposal would be phased in. Department of Revenue Administration (DRA) technical staff and delegates discussed the mechanics of SWEP collection under the bill and noted historical precedents for similar approaches but said some operational details would need development. Representative Luna said the bill contains a transition schedule (an 8- to 10-year phase-in and optional tax transition grants) and contains no explicit stabilization or long-term hold-harmless beyond transition grants.
What was said on the record: DRA's municipal supervisor, Bruce Knurer, advised the committee that the bill's mechanics for transforming SWEP to a new rate would follow historical patterns (calculating a per-thousand rate and apportioning it to municipalities by equalized valuation) but that some statutory deadlines and reporting steps would require coordination. Deborah Howze of the American Federation of Teachers-New Hampshire testified in support, saying state guarantees should be predictable and that research shows funding matters for K'12 outcomes.
Next steps: The bill was heard; committee staff and the Legislative Budget Assistant (LBA) were expected to prepare a town-by-town fiscal analysis. Representative Luna and others indicated they would work with LBA, DRA and Education Department staff to refine timeline and implementation language in work sessions.
Ending note: HB 772 is a substantive policy proposal that would require detailed fiscal modeling and statutory drafting before committee recommendation. Its core change'placing student outcome-based budgets and a state guarantee at the center'would reshape both K-12 finance and local property-tax calculations if adopted.
