New Hampshire public education suffers a great disparity between the property-rich and property-poor towns. The state has an obligation to provide “adequate education” to all resident children. However, the property tax is not an adequate funding resource to fulfill its constitutional mandate.
The so-called N.H. Advantage of no broad-based tax has political roots with some historic validity. In current practice, the lack of a broad-based tax has created the N.H. disadvantage of property-poor towns struggling to fund public education, often short-changing students. Residential property does not create income to pay tax levies. Increasing property taxes creates a regressive burden, which in fact reduces property values. In contrast a broad-based tax taps into cash flows, and is fair and progressive.
It is time to debunk the notion that a progressive broad-based tax is evil. The evil is unfairly relying on property taxes to fund a quality education across the state. The $4,000 “equal and uniform” state contribution per student falls woefully short of the $16,000 average statewide per student cost. While the state adds some small amounts for special needs, property taxes are forced to make up the large cost differential.
New Hampshire towns with high property tax rates will be unable to attract families and businesses unless the state relieves the disparate property tax burden. Special taxes and fees supporting education are insufficient. My hope is that courageous political leaders will recognize the necessity of a progressive income or sales tax to support adequate and equitable current public education needs. Make the “pledge” part of N.H. political history.
HARRY TETHER
Sunapee