Understanding RSA 32:5-i (HB 1300)

In the November 2026 general election, voters will see a ballot question asking whether to adopt two separate spending caps: a local school district tax cap and a fixed 6% cap on the SAU central office administrative budget.

The purpose of this newsletter is to help bring some clarity to RSA 32:5-i (HB 1300), provide additional resources, and invite community members to important public hearings.

Shall the [name of municipality] limit property tax growth for [name(s) of school district(s)] 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.

Enacted as RSA 32:5-i under Chapter 324, HB1300 establishes a single mandatory question on the November 3, 2026 state general election ballot that presents voters with two distinct financial limitations:

1. A local school district property tax cap (limiting tax growth to prior-year levels adjusted for inflation and new construction) and;
2. A 6% SAU-wide central office administrative budget cap.

1. School District Tax Cap: Passes if approved by 60% of district voters. It limits the growth of locally raised school property taxes.

2. SAU Central Office Cap: Passes separately if approved by 60% of all voters across the SAU (Greenland, New Castle, Newington, and Rye). It caps SAU central office administrative spending at 6% of the total school budget (excluding building bonds).

Approved voter-bonded building projects are excluded from both limits, caps last for two years, and voters at annual district meetings retain the ability to override either limitation by a 60% vote.

SAU 50 is committed to providing our communities with factual information about matters that impact our schools while complying with RSA 659:44-a, Electioneering by Public Employees. As part of our commitment to keeping our community informed, we invite you to review the following resources.

• New Hampshire Secretary of State: HB 1300 Ballot Question and Legislative History

• New Hampshire General Court: HB 1300 Bill Information and Legislative Documents

NHSBA Guidance on HB 1300

KartoonEDU, in collaboration with NHSAA, has created a series of videos intended to provide general informational content regarding the legislation. The full video is included here, and four shorter sections of the video will be added to the SAU 50 website shortly.

Greenland Central School: Tuesday, October 27 @ 6:00 PM

Newington Town Hall: Thursday, October 29 @ 5:30 PM

Please join us for an informational session to ask questions and share your thoughts about Question 2. We look forward to seeing you there.

The school district tax cap limits the amount of local property taxes that may be raised for

the school district. The statute establishes the following formula for determining the

maximum allowable levy:

Prior fiscal year property tax levy × (1 + inflation + net new taxable property growth)

The statute defines both "inflation" and "net new taxable property growth," provides for the

exclusion of certain bonded capital costs, and directs the Department of Revenue

Administration (DRA) to annually certify net new taxable property growth.

(Guidance on HB 1300, NHSBA)

The SAU cap limits the “central office administrative budget” to 6% of the total school district appropriations of the districts comprising the SAU, excluding bonded capital costs as provided in the statute.

(Guidance on HB 1300, NHSBA)