Bow residents spoke out on their determination to preserve the integrity of their schools despite the threat of a potential multimillion-dollar burden on the town and a sawbuck-sized tax impact.
Close to 75 residents attended a joint public hearing on the proposed budgets for the town and school, but the dozens of residents who spoke were mostly interested in addressing the roughly $800,000 difference between the school board’s $27.7 million recommended budget and the budget committee’s $26.9 million budget.
The differences include the potential reduction of at least three full-time teachers in the district and reducing the hours of several other positions, as well as reducing the number of requested aides in several grades. John Heise, budget committee chairman, reiterated throughout the meeting that the school board was asked to make the reductions to prepare for potential fallout from the recent Merrimack Station court ruling. The board was also asked to look at reductions because the 2015-16 budget saw a $650,000 difference between the district’s adopted budgets and the actual amount spent.
A recent superior court ruling in December set the value of all Eversource property related to the plant at $67.4 million in 2013, about 42 percent of the valuation on a town tax bill. There are several unknowns with Merrimack Station – the town has filed a notice of appeal to the state Supreme Court, and if they lose, it’s unknown how and when the town would have to pay back the difference between the town’s valuation and Eversource’s – but Heise said the committee is preparing for the worst.
But residents still spoke passionately about their own decision to move to the town for the schools, and their fears that reductions could affect not only their children and the district’s class sizes, but Bow’s future.
“If you’re cutting at the schools, you’re cutting at the core of the community,” Judith Attorri said. “You’re cutting at what makes us desirable. People won’t move to town, and people won’t be able to sell their homes.”
Mary Beth Walz, state representative for District 23, called the committee’s focus on the worst possible outcome “premature speculation,” and accused it of using fear tactics. She encouraged the committee to wait and see what happens with the appeal before making budget-based decisions.
But select board member Ben Kiniry fired back, saying it would be irresponsible for the town to not tell residents what could happen should the town lose their appeal.
“It would be grossly unfair to not warn of what, in my opinion, could be the worst thing that’s ever happened to the town,” he said.
According to Heise, the town could owe Eversource an $8.5 million refund based on the difference between the town’s and the company’s 2012-13 valuation; and if Eversource is granted an abatement for 2014, 2015, and 2016, that could potentially add another $4 million to what the town owes. And if that money were due in one year, for example, the tax rate would go up $10.78 per $1,000 of assessed property value, or an additional $3,234 on the tax bill for a home valued at $300,000, Heise said.
There’s also the possibility the plant’s value could decrease and impact the tax rate even more. It’s unknown how the town would pay the refund off. Those possibilities will be discussed next week, Heise said.