The Truth About Downshifting
New Hampshire Property Taxes

Your Town Got Record State Funding. Property Taxes Increased Anyway.

In its last two-year budget (FY24–25), Concord sent cities and towns more money than ever before, in dollars. So why does your property tax bill keep climbing? Democrats have a one-word answer — “downshifting.” Here’s what that word is really hiding.

$2.69B
State funding sent to NH towns, FY24–255
Record High
State education & local funding, in dollars
Still Rising
Your local property tax bill
The Hole in Their Story

You Can’t Cut a Town’s Funding by Sending It More Money.

The entire “downshifting” attack rests on one claim: that Concord slashed aid and stuck your town with the bill. But state aid to cities and towns hit an all‑time high in dollars in the FY24–25 budget — so the story falls apart on its very first sentence.

A firefighter helmet, police badge, and school books
Record state money for your schools, police & fire. So where’s the “cut”?
In Their Own Words

The Talking Point, On Repeat

“Downshifting” is a poll-tested word Democrats repeat in press releases, op‑eds, and letters to the editor — because it sounds technical enough to be true.

“New Hampshire Republicans have run up the tab, and they are driving up your property taxes to pay the bill.”

— NH Democratic Party4

“…the Republicans have run up the tab and now they are passing the bill on to you.”

— Sen. Cindy Rosenwald (D‑Nashua)4

“A decrease in state funding results in higher property taxes. Can’t be said enough!”

— DemocracyNH4

Every one of these attacks hangs on the same hidden assumption — that Concord cut the money. That’s the part they’re counting on you not to check. So let’s check it.

The Fact That Breaks the Narrative

State Aid Went Up. Your Taxes Went Up Anyway.

If “downshifting” were the cause of rising property taxes, then record state aid would push them down. It didn’t. That single fact collapses the whole story.

A property tax bill and house keys on a kitchen table
Record state funding and a higher tax bill — at the same time.

Two Numbers That Break the “Downshifting” Story

One of these is set in Concord. The other is set in your town.
$2.69B
State aid sent to cities & towns in FY24–25 — a record high in dollars.5
Up 30%
Statewide property taxes, 2019 to 2025 — faster than state aid, which rose about 20% over the same years.145
If state “cuts” were the cause, record aid would have lowered your bill. It didn’t — which means something else, closer to home, is driving your property taxes.

“The state sent more money than ever. Your property taxes still went up 20 percent. If ‘down‑shifting’ were real, that would be impossible.” NH House Majority Leader Jason Osborne & Sen. Regina Birdsell, NH Journal, April 12, 20266

Follow the Money

What Actually Sets Your Property Tax Bill

Your property taxes are decided at your town meeting and your school district budget — not in Concord. Even the state’s own nonpartisan municipal association says so:

“With the property tax as the primary source of local revenue, reductions in any state aid program … most often results in increased property taxes.”
— New Hampshire Municipal Association (nonpartisan)2

Local revenue means local decisions. School budgets, new hires, contracts, and town spending — voted on at the local level — are what move your rate. When those budgets grow faster than aid, your bill goes up. “Downshifting” is the word politicians use to point the finger somewhere else.

The Part Nobody Mentions

Administrators Up 78%. Students Down 21%.

Here is the piece missing from every “downshifting” press release. From 2001 to 2024, New Hampshire public schools lost 21% of their students while the number of full‑time administrators rose 78%. Enrollment fell. Administration did not.11

+78% vs −21%
Full‑time administrators vs. students in NH public schools, 2001–202411
100+
Separate school administrative units, each with its own central office
26
Superintendents paid $170,000 or more — two above $200,00012
$650M+
One‑time federal COVID money to NH schools, the last of it committed by Sept. 30, 202410

Those figures count every public school in the state, charters included. Since 2012 alone New Hampshire has lost 16% of its public school students.11 The state still runs more than 100 separate school administrative units, and 26 superintendents are paid at least $170,000, two of them above $200,000.12

The one‑time federal COVID money, more than $650 million, is part of the story but not the cause. It ran out on schedule in 2024, and by the Josiah Bartlett Center’s count it accounts for only about 19% of the rise in per‑student spending from 2020 to 2024. Over the same years local school spending rose 29%, against a 17% rise in the cost of living.1011

And most voters never see any of it as its own line item. As Rep. Michael Vose put it, the administrative costs of running an SAU are “buried in the school district budget, and it’s virtually impossible for the average person to dig through that budget and find the line items that apply to the SAU.”13

That is not a cut from Concord. It is an overhead problem, and until this year it was one you could not vote on directly.

What Changed

Republicans just put the administrative budget on your ballot.

The Law

House Bill 564, signed June 19, 2026 as Chapter 153 and effective August 18, requires every school district to put the SAU budget before voters in a separate warrant article. Vote it down and the unit runs on an adjusted budget instead. Any unassigned money left at the end of the year now goes back to the school districts.13

Myth

“The state pulled back, so we had to raise your property taxes.”

Fact

State funding from Concord hit record highs in dollars, and school administration grew 78% while enrollment fell 21%. The one‑time federal COVID money that ran out in 2024 explains only a fraction of the growth. That is an overhead decision made close to home, and starting this year you can vote on it by itself.51110

Their Big Number

The “$3 Billion Downshift” Doesn’t Hold Up

To make the attack sound huge, Democrats cite a “$3 billion downshift over the last decade” — a figure from a single opinion column, not from the state’s official books.1

Claim

“The state downshifted ~$3 billion onto local property taxpayers.”

Fact

One opinion column, by a Democratic candidate, with no math shown. Its author, Jack Wozmak, is the Cheshire County Treasurer and is running for re‑election this year as a Democrat. His column (Union Leader, December 2025) gives no table, no source and no year‑by‑year figures for any part of the $3 billion.1 The best‑documented cost‑shift is far older: municipal revenue sharing, about $25M a year and roughly $400M in all from 2010 to 2025, was first suspended by a Democratic legislature and governor in the 2009 budget, and the Democratic legislature of 2019 kept it suspended.215

Education & Your Taxes

Education Freedom Accounts Don’t Touch Your Property Taxes.

The newest twist on the “downshifting” attack says Education Freedom Accounts drain public schools and drive up your local taxes. Here is how they actually work, and why they can’t touch your property‑tax bill.

A sunlit student desk with books, an apple, and a globe
Education Freedom Accounts are about 1% of school spending. They can’t move your bill.
Your child’s grant
An EFA lets a family use their own child’s state education grant ($4,911 on average in 2025–26), paid from the Education Trust Fund in Concord, not from your local property taxes.7
Local money stays home
A family that chooses an EFA keeps paying full local school taxes. Every local dollar stays in your district.7
+$169.1M
Republicans increased state aid to public schools. EFAs (~$51.6M) are separate state dollars, not a cut to your district.58
~1.3%
EFAs are about a penny of every dollar New Hampshire spends on K–12 schools — not what’s moving your bill.8
Myth

“Vouchers drain your public schools and raise your property taxes.”

Fact

EFAs are funded by the state, not your town. Local property taxes stay in your district, and state aid to public schools went up, not down. School choice is state‑funded and barely one percent of education spending — it can’t be “downshifted” onto a property-tax bill it never touches.78

Business Taxes & Your Taxes

“They Cut Business Taxes and Raised Yours.” The Numbers Say Otherwise.

Democrats claim Republican business-tax cuts shifted the load onto your property-tax bill. In fact, businesses fund a bigger share of the state than a decade ago — and there’s no lever tying a statewide business tax to your local rate. (The BET they’re cutting is creditable against the profits tax, so it’s really a small-business cut.)

A New Hampshire Main Street of small-business storefronts at dusk
Businesses fund a bigger share of the state than a decade ago — not less.
~$1.1B
Business taxes — NH’s #1 revenue source9
~35%
Business taxes’ share of General & Education Trust Fund receipts, SFY25 — up from ~24% in 20139
~2×
Business-tax revenue nearly doubled, 2013–2025 — as rates fell9
If You Want the Receipts

The Downshift They Attack? Democrats Started It.

Here’s the irony. The cost‑shifts everyone points to — the state pulling back from its share of local retirement costs, and the suspension of municipal revenue sharing — began in the 2009 budget, when Democrats controlled the House, the Senate, and the Governor’s office.3

A long cash register receipt curling in front of a glowing New Hampshire outline
Follow the money, and the “downshifting” story falls apart.
1977–2009
35%
The state paid its share of local teacher, police & fire retirement costs — for 32 years.
→
TODAY
0%
Towns now cover 100% — out of your property taxes.

Democrats began tearing down that 30‑year commitment in their 2009 budget, cutting the state’s share from 35% to 25%, and they suspended municipal revenue sharing (~$25M a year to cities and towns), which never came back. The 2011 Republican legislature then eliminated the retirement share. When Democrats ran the House and Senate again in 2019, the House killed a bill to restore a 15% share and the budget kept revenue sharing suspended. The party now shouting “downshifting” is the party that started it, and had its own chance to undo it.2316

Democrat
Governor (Lynch)
Democrat
State House
Democrat
State Senate

Who controlled Concord when the first “downshift” budget passed in 2009.

The Recent Record

What Republicans Actually Did for Your Town

Far from cutting, the FY24–25 Republican budget sent communities record aid in dollars and held county long‑term‑care costs flat, and the 2025 budget protected towns’ 30% share of meals & rooms revenue.517

$2.69B
Aid to cities & towns, FY24–25
+$169.1M
Increase in school adequacy aid
Held Flat
County long‑term‑care costs at the FY23 level, FY24–25 (no shift to county taxpayers)
+$3.1M
More Meals & Rooms revenue to cities & towns statewide, FY25 to FY26 — the 30% local share protected
What This Is Really About

Every “No” Vote Was a Democrat.

House Democrats have already filed LSR 2027‑0240 for the 2027 session: “establishing an income tax and establishing a sales tax on certain luxury goods.” Its prime sponsor is Democratic Rep. Ellen Read of Newmarket.19

And when the House voted on keeping New Hampshire income tax free, every one of the 158 “no” votes was a Democrat. The vote came on March 5, 2026, on CACR 10, the Constitutional amendment to keep New Hampshire income tax free. All 191 Republicans voting said yes, joined by 3 Democrats. The final count was 194 to 158, short of the three‑fifths a Constitutional amendment needs.18

The one thing that keeps New Hampshire free and affordable is that we don’t have an income tax. Don’t let a made‑up word talk you into giving it up.

A mousetrap baited with a gold coin
House roll call #113: all 158 votes against keeping New Hampshire income tax free came from Democrats.
Caught in the Debate? Quick Answers.

Myth vs. Fact, One Line Each

Whether it’s a town meeting or the Thanksgiving table, here’s the truth behind the three lines you’ll hear most.

Myth

“Republicans cut aid to your town.”

Fact

The FY24–25 Republican budget sent towns record aid — roughly $2.69 billion in FY24–25, the most ever in dollars, including a $169.1M increase in school funding.5

Myth

“The state is why your property taxes are so high.”

Fact

Property tax is a local revenue source. Your rate is set by your town and school‑district budgets — voted at your town and school meetings, not in Concord.2

Myth

“Republicans shifted retirement costs onto towns.”

Fact

The state’s retreat from local retirement costs started in the 2009 budget, under full Democratic control, which cut the state’s share from 35% to 25%. The 2011 legislature ended it, and when Democrats ran the legislature again in 2019, they left it at zero.316

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Sources

Every claim, cited.

  1. Jack Wozmak (Cheshire County Treasurer), “Republican impact on NH? Check your property tax bill,” Union Leader op‑ed, December 19, 2025 — unionleader.com; from his December 8, 2025 memo, reprinted by the NH Municipal Association as “The Impact of State Downshifting on Local Property Tax Burdens in New Hampshire (2015–2025),” with the note that its opinions are the author’s “and not necessarily of NHMA” — nhmunicipal.org. Wozmak is listed among the Democrats filing for 2026 office, for Cheshire County treasurer (incumbent) — Keene Sentinel, “2026 candidate list” — keenesentinel.com
  2. NH Municipal Association, “State Aid to Municipalities: Understanding Where We’ve Been” (retirement shift, revenue sharing, property-tax mechanic) — nhmunicipal.org
  3. NH Retirement System, Employer Contribution Rates FAQ (state share 35% from 1977; cut to 30% in FY10 and 25% in FY11 by the 2009 amendment; eliminated by the 2011 amendment; 2012 court ruling) — nhrs.org
  4. NH Democratic Party budget site (talking points) — nhbudget.nhdp.org; Sen. Cindy Rosenwald quoted in the Union Leader, “NH House-Senate Dems vow to hold GOP accountable,” January 7, 2025; Terri O’Rorke, “The burdens of ‘Cost Downshifting,’” DemocracyNH (a community blog), May 28, 2026.
  5. NH House Republican Caucus, FY24–25 Budget (“almost $2.69 billion in State aid to cities and towns over the biennium”; adequacy +$169.1M; county long‑term‑care costs held at the FY23 level) — nhhousegop.com. NH Legislative Budget Assistant, “State Aid to Cities, Towns, and School Districts,” October 1, 2025: FY24–25 actual state aid $2.71B, the highest two‑year total in the LBA series (FY2011 on) in nominal dollars; $1.13B in FY2019 to $1.35B in FY2025 (+20%) — gc.nh.gov
  6. Regina Birdsell and Jason Osborne, “What’s Driving High Property Taxes in the Granite State?” NH Journal, April 12, 2026 — nhjournal.com
  7. How EFAs are funded — the state per‑pupil adequacy grant from the Education Trust Fund; families keep paying local school taxes — NH Dept. of Education & Reaching Higher NH — education.nh.gov
  8. EFA cost (~$51.6M, 2025–26) and average grant ($4,911, 2025–26) — NH Dept. of Education, November 2025 EFA Data Fact Sheet, as reported by NH Bulletin (December 3, 2025) — newhampshirebulletin.com. NH K–12 total spending ~$4.06B (2023–24), NH Dept. of Education via Josiah Bartlett Center — jbartlett.org
  9. Business-tax revenue & share of General and Education Trust Fund receipts (nearly doubled 2013–2025; about 24% in SFY 2013, a 39.1% peak in SFY 2023, about 35.3% in SFY 2025; ~$1.1B SFY25) — NH Fiscal Policy Institute — nhfpi.org. See the full business-tax breakdown.
  10. Federal COVID relief to NH schools: $37,641,371 (ESSER I, CARES) and $350,501,633 (ARP ESSER III), “total COVID-19 relief funds to over $650 million”; ESSER III obligation deadline September 30, 2024 — NH Department of Education — education.nh.gov
  11. NH public school enrollment fell 16% from 2011–12 to 2025–26 — Josiah Bartlett Center for Public Policy analysis of NH Dept. of Education data (April 30, 2026) — jbartlett.org. Students −21% and full‑time‑equivalent administrators +78%, 2001–2024, all NH public schools including charter schools and public academies, U.S. Dept. of Education data; and, for district public schools 2020–2024, federal revenue per student up $1,214, which “accounts for only 19% of the $6,400 increase in total expenditures per student,” with local spending up 29% against a 17% rise in the cost of living — Josiah Bartlett Center (June 2025) — jbartlett.org
  12. Superintendent salaries (26 SAU superintendents at $170,000 or more, five at $193,000 or more, two above $200,000), per NH Department of Education figures — unionleader.com. New Hampshire currently has more than 100 school administrative units.
  13. HB 564 (2026), “An Act relative to the adoption of school administrative unit budgets,” Chapter 153, signed by Gov. Ayotte June 19, 2026, effective August 18, 2026 — separate SAU warrant article, adjusted budget if rejected, and unassigned balances returned to districts (new RSA 194‑C:9‑c). Rep. Vose quotation and SAU count as reported by newhampshirebulletin.com.
  14. Statewide property tax, including the state education tax: $3.92B in 2019 to $5.09B in 2025 (+30%) — NH Dept. of Revenue Administration, tax rate calculation data (2019) and final municipal tax rates (2025). Consistent with NH Fiscal Policy Institute, “Property Taxes in New Hampshire: How They Work and How They Compare” (April 2026), which puts the growth in local property taxes alone at about $1.17 billion from 2019 to 2025 — nhfpi.org
  15. Revenue sharing (RSA 31‑A): about $25 million a year, suspended in every budget from 2009 (Laws 2009, ch. 144, HB 2, Democratic House, Senate and Governor) through 2023, including the 2019 budget (Laws 2019, ch. 346, HB 4), and repealed in 2025; “a total of $400 million from 2010‑25” — Margaret Byrnes, NH Municipal Association, Valley News, October 29, 2025 — vnews.com
  16. HB 497 (2019), requiring the state to pay 15% of local teacher, police and fire retirement contributions, killed in the Democratic‑controlled House — citizenscount.org
  17. Meals & rooms distribution to municipalities: $136,608,297 in FY2025 and $139,742,331 in FY2026 (+$3.1M) — NH Legislative Budget Assistant, State Aid report (October 1, 2025) and final FY26–27 HB 1. The fixed 30% municipal share was set in 2021 (Laws 2021, ch. 91, HB 2); in the 2025 budget, “various proposals to reduce 30% municipal share of meals and rooms tax were unsuccessful” — NH Municipal Association, “State Budget: What’s In It for Municipalities” — nhmunicipal.org
  18. CACR 10 (2026), the Constitutional amendment to keep New Hampshire income tax free (no tax on personal income that was not in effect on January 1, 2026): NH House roll call #113, March 5, 2026, ought to pass as amended, 194 yeas to 158 nays (Republicans 191–0; Democrats 3 yes, 158 no), short of the three‑fifths required for a Constitutional amendment — NH General Court — gc.nh.gov
  19. LSR 2027‑0240 (HB), “establishing an income tax and establishing a sales tax on certain luxury goods,” filed for the 2027 session; prime sponsor Rep. Ellen Read (D), Rockingham District 10, Newmarket — NH General Court, 2027 LSR listing — gc.nh.gov; sponsor’s party and district — gc.nh.gov

Figures reflect the 2024–2026 NH budget cycle. Historical cost‑shift origins (2009–2013) are documented by the nonpartisan NH Retirement System and NH Municipal Association.