Nashua’s property tax rate will rise 9.5% after state aid for the city’s public schools fell by $4.5 million, exceeding the reduction officials had built into the fiscal year 2027 budget.
The rate will increase from $16.83 to $18.43 per $1,000 of assessed value, Mayor Jim Donchess said. For a property assessed at $500,000, the change is expected to add about $800 to the annual tax bill.
Donchess discussed the increase during Tuesday’s Board of Aldermen meeting. City officials had expected state education aid to decline by about $2 million, but the reduction reached $4.5 million as enrollment in the Nashua School District continued to fall.
“This means the tax rate will go up way too much,” Donchess said.
The mayor attributed the increase primarily to the reduction in school aid, along with higher health care costs. He said educating students is the city’s largest expense and urged officials to begin examining the next budget as soon as possible.
School enrollment and staffing
Nashua’s school enrollment has declined over the past five years. School officials also reported that the district hired additional contract workers during the past year to address staffing shortages, particularly in special education.
The district’s finances have also been discussed as officials consider how to manage its facilities and operating costs. At the aldermen’s meeting, Ward 8 Alderman Derek Thibeault referred to recent school meetings about the possibility of closing schools. He said officials face difficult choices if the district has fewer students, lacks the money to maintain its buildings and does not pursue closures.
- The property tax rate is set to move from $16.83 to $18.43 per $1,000 of assessed value.
- State aid for Nashua schools declined by $4.5 million, compared with the $2 million reduction officials had anticipated.
- The increase is expected to add about $800 to the taxes on a property assessed at $500,000.
Donchess said the city should look to the New Hampshire Legislature for more adequate education funding. Local property taxes provide a major share of public school funding, and changes in state aid can affect the amount municipalities must raise through property taxes to support approved budgets.
