Great news arrived from Concord this week! On July 15, 2026, Governor Kelly Ayotte signed into law one of the most consequential pieces of legislation of the year: HB 1300, “establishing a school district local tax cap question for the state general elections of 2026 and 2028 and related limitations on central office administrative expenses in school districts.” With one signature, New Hampshire voters gained a powerful new tool to rein in unsustainable property tax growth and restore accountability in school district budgeting. The School District Governance Association of NH (SDGA) is a proud supporter of this landmark legislation, which drives responsible governance, fiscal prudence, and property tax relief.
For the first time, voters will decide—directly, simply, and at the ballot box—whether their school district should adopt an inflation‑based local tax cap and whether their school administrative unit (SAU) should operate under a fixed 6 percent cap on administrative spending. These questions will appear automatically on the November general election ballots in 2026 and 2028, when turnout is highest and participation is broadest. And like all tax and budget caps in New Hampshire, these guardrails can be overridden when necessary: by a three‑fifths vote at the annual meeting, or by the required charter supermajority vote in town council or city jurisdictions. The flexibility remains; the predictability finally arrives.
This reform could not come at a more urgent moment. Across New Hampshire, property taxes are rising at a pace families and seniors can no longer absorb. Whether you own or rent, the pressure is unmistakable. And while many factors contribute to the state’s affordability challenges, one stands out above the rest: school spending that continues to grow at roughly twice the rate of inflation, even as student enrollment steadily declines. The math simply doesn’t work for taxpayers.
For years, voters have asked for two reasonable things—predictability in their tax bills and accountability in administrative spending. Yet under existing law, any community seeking a tax cap or budget cap had to navigate a procedural labyrinth so complex that only two of the state’s 162 school districts ever managed to adopt one. Dozens tried. Almost all failed. HB 1300 ends that stalemate.
Instead of forcing residents to sit through long deliberative sessions or late‑night annual meetings in a school gymnasium, HB 1300 places the question directly before voters—automatically, without gatekeeping, without petitions, and without procedural gamesmanship. The law states clearly that the question “shall appear on the ballot by operation of law.” In other words, the people decide, not the process.
And what they will decide is refreshingly straightforward: whether to adopt an inflation‑based cap on their school district’s local tax levy and a fixed cap on SAU central office administrative spending. It is local control in its purest form.
The tax cap itself is both responsible and realistic. If adopted by a three‑fifths majority, the district’s local tax levy cannot exceed the prior year’s amount, adjusted for inflation using the CPI‑U Northeast Region and for new construction. This ensures districts can keep pace with real economic conditions while preventing the unchecked year‑over‑year increases that have driven property taxes to crisis levels. Bonded capital costs are excluded, protecting long‑term investments in school buildings.
The second component—a six percent cap on SAU administrative budgets—addresses a frustration taxpayers have voiced for years: the rapid expansion of non‑instructional overhead. HB 1300 defines these administrative costs precisely, covering superintendent services, business administration, HR, finance, payroll, district‑level IT, legal services, and other central office functions. At the same time, it explicitly protects what matters most: classroom instruction, school‑based services, special education, transportation, food service, and facilities operations. The cap targets bureaucracy, not students.
Critics may argue that caps are too rigid. But HB 1300 anticipates that concern. Both caps can be overridden by a three‑fifths vote (or required supermajority vote in charter jurisdictions) when truly urgent needs arise. The law establishes a baseline of fiscal discipline while preserving flexibility for genuine needs and emergencies.
At a moment when property taxes continue to climb and administrative costs grow faster than classroom spending, HB 1300 offers a balanced, voter‑driven solution. It respects local control, protects taxpayers, and ensures that resources flow where they matter most: to students and classrooms—not expanding bureaucracies.
New Hampshire has always believed in government accountable to the people. HB 1300 honors that tradition. Now it’s up to voters to shape the future of their schools—and their property tax bills.
Eric Pauer serves as the President of the School District Governance Association of NH (SDGA-NH, https://www.sdganh.org). He is a former member of the Hollis Brookline Cooperative School Board and resides in Brookline.