Concord School District Considers Tax Hike Amid $5 Million Budget Gap

Concord, NH – The Concord school district is considering a 6% increase to the local education tax rate after discovering a roughly $5 million gap between anticipated revenue and expenses for the current school year, a situation that could impact property owners in the region.

School board members learned over the past two weeks that two major unanticipated expenses are driving the shortfall. A $2 million bill from the state’s risk pool, which administers health insurance for dozens of school districts, and significantly higher-than-projected costs for contracted student services – specifically out-of-district special education and therapy – totaling $4.2 million (more than double the $1.9 million budgeted – are the primary factors. The district also received less state adequacy aid than initially projected, though this was partially offset by increased special education aid.

The proposed tax rate increase would equate to an additional $0.86 per $1,000 of property value, or $301 annually for a home valued at $350,000. Board members discussed a plan to cover the gap through a combination of withdrawing from trust funds, reducing expenses by freezing vacant positions, and the tax rate increase, with the remainder potentially deferred to the end of the year. This situation highlights the growing financial pressures facing public school systems nationwide, as detailed in reports from the National Education Association.

“We’re working really hard to pay our heat on time and, one by one, things are coming and we inch our way toward being unhoused,” said board member Barb Higgins, drawing a parallel to a family struggling to make ends meet. Board President Pam Walsh stated the district must “accept that this higher special education budget is the new normal,” as expenses for these services have increased roughly 50% since 2017, according to the state Department of Education. The board will hold a public hearing later this month before a final vote on the tax rate, a process different from many districts where residents directly approve the budget; Concord’s board sets both the budget and tax rate itself. You can learn more about Concord’s school district on the city’s official website.

Officials indicated they will continue to explore long-term solutions to address rising special education costs and the broader lack of community support services impacting the district’s financial stability.