HB1300
House Bill 1300
During the 2026 New Hampshire Legislative Session, the General Court passed House Bill 1300 (HB 1300), which was signed into law. HB 1300 places a statewide referendum question on the local ballots for the 2026 and 2028 State General Elections.
What does a NO vote mean?
A no vote allows local officials to set the budget.
The budget process continues as it has in past years, with public input at hearings, a budget committee review, deliberative session input, and a vote by Salem residents in March.
What does a YES vote mean?
A yes vote adopts two caps for two years.
The local school tax cap and the SAU central office cap would apply to the 2027-2028 school year limiting budgets based on a formula included in the bill.
Additional Budgetary Factors
Required Expenses
The tax levy cap does not include consideration for required expenditures that out-pace the rate of inflation:
- Transportation and fuel costs
- Special Education services
- Health care coverage and other benefits already approved within collective bargaining agreements
- Salary increases under voter-approved collective bargaining agreements
- Energy and heating costs
- Charter school placement for Special Education students
Revenue Decreases
Decreases in state and federal funding to support mandated programming increase the costs to local communities. These include:
- IDEA grants
- Title grants
- Funding for catastrophic special education state aid
- CRTC state funding
Cost-Cutting Options
If the district’s non-descretionary (required) expeditures go beyond the cap, the following cost-saving items may be considered:
- Decreases to staffing
- Increases to class sizes
- Reduced services provided by the district and SAU
- Charges for activities and programming, like athletics
- Reduction in optional electives and programs
FAQs
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“Shall the Town of Salem limit property tax growth for Salem School District under RSA 32:5-i? If adopted for a two-year period: (1) the local property tax levy may not grow beyond the prior year’s amount, adjusted for inflation and new construction; (2) SAU central office spending may not exceed 6 percent of total school district appropriations; and (3) bonded capital costs are excluded from both limits. These caps apply only to administrative operations of the SAU central office and do not affect classroom instruction, school-based services, or other municipal expenditures. These limits may be overridden as provided in RSA 32:5-i. Adoption requires a three-fifths (3/5) majority vote.”
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HB1300 includes two different limitations on school budgets – one limits the growth in the local school property tax levy, and the other caps central office (SAU) spending.
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If passed, local property tax levy for the school district budget may not grow beyond the prior year’s amount, adjusted for inflation and new construction.
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HB1300 limits central office spending to 6% of the overall budget.
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Approval for HB1300 requires a 3/5 vote (or 60% in favor).
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HB1300 will appear on all local New Hampshire ballots in November 2026 and again in November 2028.