Thank you, Mr. Speaker.…
Rep. Keith Erf (R - Hills 28)Thank you, Mr. Speaker. HB 675 passed this House last year and was retained in the Finance Committee. It requires a two-thirds majority vote of those voting to pass a school budget that increases operating spending by more than the percentage change in enrollment. This amendment changes the requirement for two-thirds majority vote to include an inflation adjustment, until June 30th, 2028, the previous year's operating budget is adjusted to account for the inflation rate over the previous calendar year. After that time, the previous year's operating budget is first adjusted by the percentage change in the enrollment over the previous year and then adjusted to account for the inflation rate over the previous calendar year. If the proposed school operating budget exceeds the calculated amount, including both enrollment and inflation adjustments, as described, then two-thirds of those voting must vote to approve it. The two-thirds majority vote also applies to any warrant articles in excess of the calculated amount. School districts seeking emergency appropriations continue to follow current law, which is unchanged. The Commissioner of the Department of Revenue Administration continues to notify the school board of excess appropriations to be deleted as in current law, which is unchanged. The two-thirds majority vote of those voting is not a high hurdle in passing school operating budgets. Over the past few years, there have been a number of votes on large spending increases, and the vote in favor has been 80 to 90 percent in favor. In Croydon, in 2022, it was 99 percent in favor. This two-thirds majority vote assures that a significant majority of residents voting to approve the local school budget are happy to see the significant increase in their property taxes resulting from the increased school spending they are voting for. Please join me in voting to provide our constituents with a modicum of control over their local property taxes, which have seen large increases driven by increased local school spending. Thank you, Mr. Speaker.
Speaker PackardRepresentative Wallner has requested a roll call. Is that sufficiently seconded? It is sufficiently seconded. This will be a roll call on the amendment. The motion before us is the Majority Amendment (3013h). Chair recognizes Representative Hakken-Phillips for a Parliamentary Inquiry.
Rep. Mary Hakken-Phillips (D - Graf 12)Thank you, Mr. Speaker. If I know that whatever shape or form this amendment comes to the floor in, the impractical and arbitrary school budget cap is against granite state values and the New Hampshire way when it prohibits local control, if I know that this policy makes for a good sound bite and an even better social media message, but it's an extremely unpopular policy with voters and it will fail to deliver on the property tax relief it promises, and if I also know that constituents elected their local school board members to do the hard work of solving problems using all the tools at their disposal, just like businesses and families do, but this amendment handcuffs those same elected officials and inhibits their work, and finally, if I know that the real harm done by this bill will be felt in the overcrowded public school classrooms by more than the 90% of granite state kids who are there, where they have fewer educational opportunities despite their community's desires, then would I now push the red button and vote no against the amendment so that another way can be undertaken? Thank you, Mr. Speaker.
Speaker PackardThe chair recognizes Representative Sweeney for a Parliamentary Inquiry.
Rep. Joe Sweeney (R - Rock 25)Thank you, Mr. Speaker. Mr. Speaker, if I know that this committee amendment is the culmination of a year of work by the committee and stakeholders to craft the package, and further, Mr. Speaker, if I know that this amendment reflects the common-sense proposal that was sought for earlier last year in regards to this bill, would I now press the green button and stand with the overwhelming majority of granite staters that want to see this policy passed? Thank you, Mr. Speaker.
Speaker PackardThe House will be in order. The motion before us is majority amendment (3013h). This is a roll call vote. If you're in favor, you'll press the green button. If you're opposed, you'll press the red but- ton. Voting stations are open for 30 seconds. Have all members present have an opportunity to vote? The House will attend to state of the vote. 184 voting yea, 168 voting nay; the amendment is adopted. The bill is on second reading, and open to further amendment. The chair recognizes Representative Rice.
Rep. Kimberly Rice (R - Hills 38)Thank you, Mr. Speaker. Good morning, colleagues. I rise in support of this amendment because it is about accountability and priorities. This proposal does not cut classroom funding. It does not impact teachers or students. It simply places a reasonable limit on central office administrative spending, ensuring that education dollars are focused where they matter most; on learning. A 6% cap still allows districts flexibility, but it also promotes efficiency, transparency, and responsible use of taxpayer funds. Families across our state expect us to be good stewards of their hard-earned dollars, especially at a time when costs continue to rise. This amendment keeps the focus on students, respects local control, and encourages smarter spending. By adding this to the bill rather than replacing it, it respects the good work of the Finance and Education Funding committees. For those reasons, I urge you to press the green button. Thank you.
Speaker PackardRepresentative Rice has offered floor amendment (0033h). It's in your seat pockets. Representative Wallner has requested a roll call. Is it sufficiently seconded? Representative Wallner has requested a Division. Representative Sweeney has requested a roll call. Is that sufficiently seconded? It is sufficiently seconded. This will be a roll call vote. The motion before us is the Rice floor amendment (0033h) that is in your seat pockets. This is a roll call vote. The chair recognizes Representative Kate Murray for a parliamentary inquiry.
Rep. Kate Murray (D - Rock 22)Thank you, Mr. Speaker. If I know this amendment, even with such small changes as it offers, it's still a direct attack on local control, an ideal that granite staters hold very dear, and if I know the consequences of this bill and of this amendment, of which we are already aware, there are additional unintended consequences, which will cause immeasurable harm to our school district, including those areas such as insurance and other considerations, which are beyond the control of a school district, but which the school district still must attend to when it is working out its finances. And if I know that my mailbox has been overwhelmingly filled with emails at absolute opposition to this school cap, and if I know that changing a few nouns here and there and using synonyms and using alternate verbs, this amendment still flies in the face of local control, arbitrarily imposes a cap, and has garnered widespread and vociferous opposition in every corner of the state, would I now vote red to vote down this amendment? Thank you, Mr. Speaker.
Speaker PackardChair recognizes Representative Rice for a parliamentary inquiry.
Rep. Kimberly Rice (R - Hills 38)Thank you, Mr. Speaker. If I know that this bill helps to control the spending of administration, and that I further know that the cost of administration is the bulk of our budgets, would I press the green button to help get these budgets under control? As of now, they are unsustainable. Thank you, Mr. Speaker.
Speaker PackardThe motion before us is Representative Rice for amendment (0033h). This is a roll call vote. If you're in favor, you'll press the green button, if you're opposed, you'll press the red button. Voting stations are open for 30 seconds. If all members present had an opportunity to vote, the House will attend to the state of the vote. 177 voting yea, 176 voting nay. The Speaker did vote on that. The amendment is adopted. The bill is on second reading. House will be in order, please. The bill is on second reading, open to further amendment. Representative Ball offers floor amendment (0042h). It's in your seat pockets. Representative Perez is recognized to speak. Representative Perez Thank you, Mr. Speaker. Happy New Year to my colleagues. I am not Lori Ball, I am Representative Perez. I've been accused of trying to come last minute to bring to change HB 675 and I want you to know that that is definitely not true because I have been following this for multiple years and last year in my town I put in a warrant, citizen's warrant article, to do exactly this. We do have a law, RSA 32:5-C, that allows us to do this. So I put it in and at the deliberative session it was changed to a study and my town did an incredible study for me and they came back to me, the school board I mean, came back to me with that study and made it very clear that this did not work for our town. They made it very clear that this type of cap is based on numbers and not on needs. Mr. Speaker and colleagues, we all agree that property taxes are rising too fast and school budgets are the largest driver. The real question before us now is how do we apply restraint without harming classrooms or stripping away local control? I personally am tired of when budgets are cut at the school level that the first thing is said, well we will take this away from the kids. House Bill 675 and the prior amendment rely on state-level formulas tied to inflation and enrollment. That approach adds complexity, shifts accountability away from the local decision-maker and makes it hard for voters to understand who is responsible for the bill. This amendment takes a simpler, more effective approach. It places a clear enforceable cap on central office administrative spending, the fastest growing and least transparent part of school budget and it does so at the point where budgets are actually set; locally. Last year I asked in our town for them to pull what the administrative spending was because it wasn't clear in the budget. It took them less than an hour and a half to pull those numbers for me. Just as important, it explicitly protects instruction. Teachers and classrooms are excluded by design so districts are not forced to balance budgets on the backs of educators. Instruction should remain the priority. Some have argued only a
broad state-level spending cap constitutes real restraint. I disagree. Real restraint is clear, enforceable limits applied where decisions are made and accountability to the voters, not mandates imposed from Concord. This amendment does not overhaul the education funding system. It does not rely on complicated assumptions. It simply requires that administrative scale with the rest of the budget unless the voters chose otherwise. This is real restraint, transparent and defensible. If we want to protect the classrooms, preserve local control and responsibly address taxes, this amendment is the right place to start. I ask for your support. I ask you to support this amendment. Thank you.
Rep. Joe Sweeney (R - Rock 25)Thank you, Mr. Speaker. Mr. Speaker, typically I get up here and I just sort of speak from my mind and speak from my heart, but I actually prepared a speech today because I view this issue as just so important to the voters of New Hampshire. The number one issue I hear from voters and residents and neighbors is that our property taxes are just getting out of control. It's pricing seniors out of their homes. It's making it harder for young families to buy into the New Hampshire market. They flee for lower tax states down south or out west in the Midwest. People fleeing New Hampshire to go to lower tax states should be an enigma to us. For years, especially since 2021 when this majority took back control, this legislature has sent more money than ever before to our towns, our cities and our school districts and we have seen zero property tax relief for all those efforts. We keep singing until we're blue in the face, and as much as we don't like to get blue in the face, we keep singing about how much money we keep sending back to towns, to cities, to school districts and it just disappears. Residents don't feel the property tax relief that our votes intended it to be and they just go into the school districts where they just continue to propose higher budgets because they take the money that the state sends them, they lightly increase their tax rate as much as they can before people really start to revolt and the spending keeps going up and up and up. Something has to give. House Bill 675 has had an incredible process in the House of Representatives. Originally it started off as a near doubling of the state adequacy aid to each school district per voter, per student, and then it evolved into the two-thirds cap with the inflation adjusted that we just added on earlier and now we just previously amended.
Rep. WebberMr. Speaker, I'm wondering when we are going to proceed to speak of the amendment.
Rep. Joe Sweeney (R - Rock 25)Right now. This amendment puts a six percent cap on central administrative office expenses in the school district budget. That's fantastic. Good thing we just amended the bill two seconds ago with the six percent cap added on to HB 675. The amendment before us right now replaces all of the work of House Bill 675 over the last year and a half with that six percent cap just on central office. There is no higher threshold cap on school spending beyond that six percent central office cap. So there's no upper limit to what they can spend. So for every dollar increase they want to spend more on central office they would need to increase, they would simply need to increase every other spending item by $16 in order to get a simple majority vote to approve the higher central office spending. Under the current form of 675 with the amendments that we have already adopted, that six percent cap would live within that budget that is going up by inflation and tied to the student population. The current amendment that we're debating right now isn't a real reform. It's a loophole. I really appreciated the sponsor of the amendment bringing it forward because that's how we crafted the amendment that we just adopted as a body because we do want to make sure that we are getting those costs of administrative costs constrained down to protect the taxpayers but it is like it is largely a meaningless cap if there is not that higher threshold cap on overall district spending. That is what is out of control and it's only going to incentivize further if this amendment passes. It will incentivize further increases in spending, not incentivize decrease in spending inefficiencies that the current version of House Bill 675 does. So with those guardrails in place the districts are not going to be able to tax and spend their way to oblivion. They're not going to be able to tax our residents out of their homes. It's the same reason why Americans for Tax Reform has urged this body to reject this amendment. Removing the spending cap that this amendment does will invite higher taxes not lower ones. In a time of higher cost burning everyone's wallet this amendment would throw gasoline on the fire; not snuff it out. We should not weaken this bill. We should get it over to the Senate for the next step in the long legislative process that is ahead before it gets to the governor's desk. And folks this side of the wall, this side of the aisle, that side of the aisle, I suspect and I could be wrong, but we'll see within 15 or 20 minutes or so that there may be many votes yes on this amendment that don't want the underlying bill to pass. This amendment replaces the entire bill. Why would we vote with folks that want to replace the entire bill that then don't want to see that entire bill finally pass in 20 minutes or so? I would question their motives. I would question their intent. I would. I would. If you vote for an amendment that replaces the entire bill and then you follow it by voting against the Ought to Pass as amended you are deceiving the voters. You are deceiving this body. It's not fair. I urge the body to vote no on the amendment.
Speaker PackardThe member will suspend. Representative Sweeney: Thank You Mr. Speaker. Do you have a Point of Order?
Rep. Peter Bixby (D - Straf 13)I believe the practice and precedent in this body is to not impugn motives to other members and that has just been directly done by the member on the other side.
Rep. Joe Sweeney (R - Rock 25)Mr. Speaker I apologize for asking a grounded question.
Rep. Nick GermanaAm I mistaken isn't the member supposed to be directing his comments to the Speaker not directing them directly at other members in the chamber?
Speaker PackardAll comments are directed through the Speaker. The House will be in order. Enough. The motion before us now is the floor amendment (0042h). Representative Sweeney has requested a roll call. Is that sufficiently seconded? It is sufficiently seconded. This will be a roll call vote. Members take your seats. The motion before us is Ball floor amendment 0-0-4-2. This is a roll call vote. Chair recognizes Representative Ball for a parliamentary inquiry.
Rep. Lorie Ball (R - Rock 25)Thank You Mr. Speaker. If I know that this amendment places a clear enforceable cap on central office administrative spending at the point where the budgets are set while explicitly protecting classroom instruction and local voter control the New Hampshire way then I would press the green button and support this amendment.
Speaker PackardChair recognizes Representative Osborne for a Parliamentary Inquiry.
Rep. Jason Osborne (R - Rock 2)Thank You Mr. Speaker. If I know that we just adopted an amendment that constrains the central office spending and if I know that I'm here to protect the taxpayers and I know that this amendment would be a tanker truck full of gasoline on the already raging inferno of property taxes consuming the state driving granite staters from their homes, would I press the red button right now to defeat this poison pill amendment?
Speaker PackardThe motion before us is the Ball floor amendment (0042h). This is a roll call vote. If you're in favor you'll press the green button. If you're opposed you'll press the red button. Voting stations are open for 30 seconds. 182 voting aye. 173 voting nay. The amendment is adopted. Now we are on the motion of Ought to Pass as Amended. The chair recognizes Representative Hakken-Phillips.
Rep. Mary Hakken-Phillips (D - Graf 12)Mr. Speaker, I rise in opposition to HB675 as amended because it's bad for New Hampshire schools. The proposed replace-all bill as amended differs from what narrowly passed this chamber in March. The amended bill mandates a centralized administrative office cap. It's a budget cap for schools with a difficult override. You can't spend a dollar more without a supermajority. We've heard the policy arguments against this before. Budget caps lock in disparities between districts, take away local control, hurt kids in classrooms, and create too high a voting threshold to overcome. Remember, voters have outright rejected caps in nearly every election in recent memory, sending a clear message; New Hampshire doesn't want caps. But consider this too. First, under New Hampshire law, school districts are already free to set these budget caps. In fact, 8 cities and 5 towns already have established some limit on school spending. Funny enough, I don't recall Laconia, Manchester, Rochester or even Alstead, Milton or Nottingham, all places with these limits, widely celebrating some epic property tax relief compared to the rest of the state. So, if this bill promises tax relief and if the cap under law is permissible now, how come only 13 cities and towns have adopted it? The remaining cities and towns don't want a cap because it doesn't work. This amendment's mandate is a mistake. Second, the New Hampshire Supreme Court ruled this past summer that New Hampshire is inadequately funding public education in violation of our state constitution. In Conval, the court demands that the state raise base-adequacy from approximately $4100 to approximately $7300 per pupil. But if this amendment passes and is signed into law, it will be in direct defiance of those rulings. It is one thing for the legislature to do nothing to advance those holdings, but it is entirely another for this legislature to do the exact opposite of what the court demands. This amended bill poses a significant fiscal and legal risk to New Hampshire. Schools cannot comply with the school budget cap and the court's raised per-pupil adequacy. Now, that's sounds like the conflict could mean expensive litigation and that expense would be on top of the more than $4 million the state has already spent in it's failed legal challenges on these very issues. Third, this amended bill is quite simply bad math. It just doesn't add up. When Londonderry gets hit with a $2 million one-time school health care assessment, Rochester receives a $1.5 million less than department adequacies monies than projected, and Merrimack faces a $2 million budget gap because of increasing healthcare premiums and special education costs. These towns need the same flexibility as any business or family has to meet their obligations. Clearly, these financial surprises cannot add up to last year's budget. We already ask our communities to do the impossible, and if we pass this bill as amended, we'll be asking them to do it with one hand tied behind their back. Mr. Speaker, our communities don't need handcuffs. They need unfettered freedom to use all of the financial planning tools at their disposal for local decision making. That's what our communities have been doing for centuries. It's quite literally the New Hampshire way. If we pass this bill as amended, the message it will send is the New Hampshire way over, that people who write school budgets and the community members who elect them and vote to approve those budgets aren't capable, they're not good enough. We'd be saying you need Concord's mandates instead. Our communities don't need mandates,
they need assistance. We all want property tax relief, so assist our communities by stopping the downshifting that makes it incredibly difficult to get ahead. Less for room and meals, less for New Hampshire retirement system, less for public education, less for special education. Year after year it's less and even less from the state. How is that a sustainable plan, good politics or even good business? Finally, Mr. Speaker, I ask you to vote no on this amendment because it's bad problem solving, it's bad legal strategy, bad math, bad politics and simply bad for New Hampshire. Our communities do not need mandates, they need assistance. Thank you, Mr. Speaker, and I asked for a Division Vote.
Speaker PackardThe chair recognizes Representative Sweeney
Rep. Joe Sweeney (R - Rock 25)Thank you, Mr. Speaker. Fool me once, shame on you. Fool me twice, shame on, well, you know, the other guy. It's unfortunate and I'm perplexed that so many would vote for an amendment that replaced the entire bill and now they're going to vote against the entire bill. I'm also going to vote against the entire bill because this bill, as amended, with the replace-all amendment, completely sets New Hampshire on the trajectory for more property tax increases, more local spending and just out of control budget. So HB 675, it was fun while we had you. We're going back to the drawing board. I would vote down this bill. Thank you all for playing.
Speaker PackardRepresent Sweeney has requested a roll call. Is that sufficiently seconded? It is sufficiently seconded. This will be a roll call vote. Members, take your seats. The motion before us is Ought to Pass with Amendment. This is a roll call vote. The chair recognizes Representative Eileen Kelly for a parliamentary inquiry.
Rep. Eileen Kelly (D - Merr 8)Thank you, Mr. Speaker. Mr. Speaker, if I know that current law, RSA 32:5-E allows voters and school districts to adopt budget caps if they so choose, thereby retaining local control, and, Mr. Speaker, if I also know that this legislation is not about protecting the taxpayer, it is just another way of shifting responsibility away from the state and failing to meet court-ordered education funding requirements, our constitutional obligation to educate our public school students does not change, and finally, Mr. Speaker, if I know that our state's citizens have made it clear they oppose a state mandated school budget cap, last year communities around our state resoundingly rejected proposed caps. House Bill 675 as amended, forces a state-wide mandate on all school districts, regardless of the discrepancies between them and most importantly, takes away local control from voters than would I now vote no and press the red button. Thank you, Mr. Speaker.
Speaker PackardThe chair recognizes Representative Ladd for a parliamentary inquiry. Waves off. The motion before us is the Ought to pass as amended on House Bill 675. This is a roll call vote. If you're in favor, you'll press the green button. If you oppose, press the red button. Voting stations are open for 30 seconds. If all members had an opportunity to vote, the House will attend to the state of the vote. 9 voting a 346 voting nay. The motion fails. For what reason does the member rise?
Rep. Joe Sweeney (R - Rock 25)Mr. Speaker I move to place the entire debate of HB 675 into the permanent journal.
Speaker PackardThe motion before us is Inexpedient to Legislate on House Bill 675. Can we do a voice vote? All those in favor say aye. All those opposed say nay. The ayes have it.