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 happens if HB 1300 does not pass?
The budget process continues as it has since adoption of SB-2, with public input at hearings, a budget committee review, deliberative session input, and a vote by Salem residents in March.
What happens if HB 1300 passes?
The local school tax cap and the SAU central office cap would apply to the 2027-2028 school year, limiting the local tax levy (and associated budget) based on a formula included in the bill.
FAQs
What is the wording of the question?
“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.”
Are there two caps or one?
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.
How does the cap impact the tax levy?
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 (excluding impacts of revaluation).
How does the cap impact administrative spending?
HB1300 limits central office spending to 6% of the overall budget.
What is required to pass HB1300?
Approval for HB1300 requires a 3/5 vote (or 60% in favor).
When will this appear on the ballot?
HB1300 will appear on all local New Hampshire ballots on November 3, 2026 and again in November 2028.
If the caps pass, can they be overridden?
Only the tax cap can be overridden. Costs approved in March have to pass with a 60% majority vote to override a tax cap.
Where and when is voting taking place?
Voting will be on Tuesday, November 3, 2026 from 7am – 7pm at Barron School, Fisk School, North Salem School, and Woodbury School.
Additional Budgetary Factors
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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
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If the district’s non-discretionary (required) expenditures go beyond the cap, the following cost-saving items may be considered:
- Academics and Technology
- Administration and Staff
- Capital Improvements
- Extra-curricular Activities and Athletics
- Transportation