Yesterday, the judge presiding over the Rand v. State of New Hampshire school funding lawsuit issued an order denying the taxpayer plaintiffs’ motion seeking a preliminary injunction. If granted, the injunction would have prevented municipalities from retaining excess Statewide Education Property Tax (SWEPT) funds or using negative local tax rates to offset their SWEPT obligations. 

“While we’re disappointed that this request for an injunction was declined, we are still very optimistic about this suit,” said Zack Sheehan, NHSFFP Project Director. “The order did not address, and the State did not directly argue against, the merits of the plaintiffs’ claim that the existence of negative tax rates and the ability of communities to retain excess SWEPT to offset other local property taxes is unconstitutional.” 

Judge Ruoff ruled that the plaintiffs do have standing to challenge these SWEPT avoidance tactics, but found that granting the injunction at this point would cause harm and disruption to the communities who have used these practices in the past and prepared for the coming tax year under the assumption that they would continue to be able to retain their excess SWEPT or offset their local tax rates. He wrote that it would be more appropriate to rule on those questions after a full trial. 

“Looking forward to the trial next year, I think it will become even more clear that there is no disagreement that these SWEPT avoidance tactics are unconstitutional. And that is only one piece of this case” Sheehan said. “The trial will provide another opportunity to highlight to the public both the details of the system of wildly varying local property tax rates that hurts students and taxpayers around the state, and the clear conclusion that it is the result of the state’s failure to fulfil its constitutional obligation to fund education.” 

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The mission of the NHSFFP, a registered 501(c)(3), is to inform the public about the condition of New Hampshire public schools and their funding; to advocate for changes to make the system more equitable for students and taxpayers alike; and, if necessary, to prosecute, manage, control, and/or participate in a lawsuit challenging the constitutionality of the system for funding education in New Hampshire. 

For all press inquiries, please contact Noah Telerski at ntelerski@fairfundingnh.org