Report: New Hampshire ranks last in percentage of education revenue provided by state

July 14, 2026 - 04:03

A new report from a nonpartisan research group shows New Hampshire sits at the bottom of the nation when it comes to the share of education revenue coming from the state. The analysis found that over the past 15 years, state funding for New Hampshire schools has actually declined when adjusted for inflation. Researchers point to a key turning point: the state shifted the cost of teacher retirement benefits onto local school districts. That move effectively pushed more of the financial burden onto property taxpayers, shrinking the state's direct contribution to education. As a result, New Hampshire now relies more heavily on local property taxes to fund its public schools than any other state in the country. The report highlights a growing gap between what the state provides and what local communities must cover. Education advocates argue this puts rural and low-income districts at a disadvantage, since they have a smaller tax base to draw from. The findings have reignited debate in Concord about the state's constitutional obligation to fund an adequate education. Lawmakers have introduced several bills this session aimed at increasing the state's share, but no consensus has emerged. Critics of the current system say the imbalance forces towns to either raise taxes or cut programs. Supporters of local control argue that communities should decide their own spending levels. The report did not offer specific policy recommendations but urged state leaders to examine long-term trends in education funding.