If you’ve been following the news, you’ve heard about the major budget problems in Claremont. School administrators and elected local officials allowed an accounting error to create a budget shortfall of more than $5 million. To put that in perspective, the entire Claremont school budget totals just over $40 million. This was more than an innocent mistake — it was negligence.
To make matters worse, this past week we learned that the school district is reportedly facing an additional $850,000 assessment from its health insurance risk pool. While this charge isn’t directly the city’s fault, it further complicates an already difficult situation.
The mismanagement of the Claremont school budget is simply unacceptable. My understanding is that the administrator responsible for the budget should have been vetted more thoroughly and had a prior history of alleged mismanagement in the town of Hillsborough. How could such a person have been hired? And apparently, when a school board member raised questions about the finances, they were told it wasn’t their concern.
The more than $5 million shortfall that administrators failed to properly account for now threatens local property taxpayers with higher taxes and jeopardizes students by potentially leading to school closures and cuts to extracurricular activities. Neither outcome is acceptable.
The administrators who created this mess must be held accountable. However, at the moment, it’s the students who stand to bear the brunt of this monumental failure. For their sake, we, as state officials, must find creative, fiscally responsible ways to help.
One idea being floated is a full state bailout to cover the cost of Claremont’s mismanagement. That is not the answer. The state does not bail out school districts. Look at Pittsfield, where a $1 million shortfall is being addressed locally and responsibly. A bailout would set a terrible precedent by rewarding incompetence. Taking money from taxpayers in other parts of the state to cover another city’s mistakes is not the New Hampshire way.
There are, however, more appropriate ways to ensure Claremont’s students receive the quality education all Granite State children deserve — without a bailout. This past week, I introduced an amendment designed to do just that. It would help the city address the cash flow problems caused by its $5.1 million shortfall by creating a revolving loan fund that allows Claremont to access Adequate Education Funds at the beginning of the school year, then repay them with interest. This would enable the school district to avoid catastrophe and keep its doors open. The amendment would remain in effect through 2030.
Let me be clear: this amendment will not result in a state bailout to fix the city’s self-inflicted troubles. The legislation I’m proposing will not cost New Hampshire taxpayers a single extra penny. It’s a loan — not a gift — based on existing funding, and it must be repaid in full. There is no provision allowing Claremont to keep the money indefinitely. The sole purpose of the amendment is to provide the district with short-term cash flow so students aren’t shortchanged in their education. I believe this is an innovative, fiscally responsible solution that deserves broad support from my colleagues in Concord.
New Hampshire has always prided itself on sound financial management. We consistently pass a balanced budget without a sales or income tax. The challenge in Claremont has the potential to cause real hardship for real families. We need to act — but we must do so responsibly.
