FOR IMMEDIATE RELEASE

Contact(s):        Senator Ted Gatsas - (603) 271-2709                                        March 13, 2008

                        Senator Robert Letourneau (603) 271-2118

                        Senator Jack Barnes (603) 271-6931

DONOR TOWNS RETURN

RISKY SCHOOL FUNDING PLAN PASSES SENATE

WITH A 20% INCRESE IN PROPERTY TAXES

CONCORD, NH - - Today, in the New Hampshire State Senate SB 539 relative to the cost of an adequate education and provision of fiscal capacity disparity aid reinstated the donor town system and all but guaranteed an increase in the statewide property tax. 

“SB 539 spends approximately $70 million dollars in additional funding that the state does not have.  Currently the State of New Hampshire is in a fiscal crisis; we have a $150 million dollar shortfall to date.  To meet the funding level set forth in SB 539 this means a 20% increase in property taxes for the New Hampshire taxpayer and the return of donor towns,” began Senator Ted Gatsas (R-Manchester).

Communities across the state of New Hampshire stand to lose millions of dollars in education funding leaving the financial burden on the local taxpayer, “under the plan set forth in SB 539 the education funding dollars coming to Derry decrease by 31%.  There’s no way a town like Derry can handle this decrease.  We can not expect the taxpayers to make up the difference; the burden is too great.  Derry will be left with one option and that is to cut programs,” added Senator Robert Letourneau (R-Derry).

SB 539 will head to the Senate Committee on Finance and come before the full Senate for a final vote on Thursday, March 20, “I would hope that Governor Lynch would step in and make his feelings known to the members of the legislature.  Clearly his leadership and his voice is needed in an effort to bring reason to this debate.  Increased property taxes and donor towns are unreasonable,” concluded Senator Jack Barnes (R-Raymond)