Voters reject proposed school-tax cap, leaving district without new limit
Sunapee voters rejected the proposed school-tax cap, so it will not constrain the district’s budgets.
Read the full storySunapee voters rejected the proposed school-tax cap, so it will not constrain the district’s budgets.
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The board discussed House Bill 1300, a proposed New Hampshire school district tax cap question that will appear on the November ballot. If approved by three-fifths of voters, the cap would take effect immediately and impact the budget currently being developed, potentially affecting staffing, negotiated agreements, programs, supplies, and athletics.
The board approved retaining a $383,986 FY26 year-end fund balance, leaving zero dollars available to reduce taxes. Officials said the fund balance is about $900,000 lower than last year due to cost drivers including an unexpected mandatory School Care invoice and over $600,000 in emergency expenditures for stage lighting/electrical work, a high school gym floor replacement, and boiler replacements at the Littleton Academy building.
The board discussed HB 1300, a newly signed state law placing a local tax cap and SAU central-office spending limit question on the November 2026 ballot. If approved by a 60% supermajority, it would cap local property tax levy growth to the prior year's amount (adjusted for inflation/construction) and limit SAU central office spending to 6% of total district appropriations. The district will need to prepare two different budget scenarios until the vote outcome is known.
On June 23, 2026 the new superintendent reported that only about $12,000 was left in the 2025-26 budget. He said spending had been approved without the business administrator's final sign-off. Planned SAU 109 start-up costs (payroll, superintendent salary, IT) moved into 2026-27, which will push spending over the voted budget. He proposed leaving an open position unfilled for a year to cover them.
The Board unanimously authorized using $1 million in unexpended FY2026 appropriations toward capital improvements, reducing the authorized bond from $7.25 million to $6.25 million.
In March 2026 voters approved raising up to $150,000 to reduce the deficit (Article IV). On June 8, 2026 the board voted to withdraw about $120,000 from the Special Education reserve and $216,000 from the High School Tuition reserve, leaving $1 in each. The business administrator said this would cut the deficit from about $603,516 to about $108,379.
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