New Hampshire’s adequacy formula, a cornerstone of school funding, determines state aid for public schools, charter schools and Education Freedom Accounts, but courts deem it underfunded. The Supreme Court held the base amount unconstitutional and left the fix to the Legislature, exposing disparities in funding that impact equity across districts. Lawmakers face pressure to reform this system.
New Hampshire’s school funding system relies heavily on local property taxes, creating significant inequities between wealthy and property-poor communities. Despite court rulings declaring the funding approach unconstitutional, reforms remain stalled. As a result, students in poorer districts face limited opportunities, while wealthier towns thrive, perpetuating a cycle of educational disparity.
New Hampshire’s court has ruled that the state’s education funding is inadequate, requiring legislative action. To address this, a combination of education funding reform and housing policy changes is proposed. This includes adjusting per-pupil aid, rationalizing the statewide education property tax, and promoting affordable housing to relieve tax burdens and support families and workers.

