The Truth About Downshifting
New Hampshire Property Taxes

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

Concord is sending cities and towns more money than ever before. 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
Level of state education & local funding
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 just hit an all‑time high — 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.5
Still up ~20%
Your property taxes climbed anyway — even as state aid hit records.6
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 wouldn’t happen. NH House Majority Leader Jason Osborne & Sen. Regina Birdsell6

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.

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

That number isn’t backed by NH’s official revenue data — and its author even claimed your taxes would be lower today without it, which the record flatly contradicts. The documented cost‑shifts are far smaller and far older: the retirement shift (~$125M) and revenue‑sharing suspension (~$400M cumulative) — both enacted by Democrats in 2009‑2010.23

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 (~$4,400), 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%
Share of state revenue from business — up from ~24% a decade ago9
~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‑shift everyone points to — the state walking away 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 and suspending municipal revenue sharing (~$25M a year to cities and towns), which never came back. The party now shouting “downshifting” is the party that started it.23

Democrat
Governor (Lynch)
Democrat
State House
Democrat
State Senate

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

The Recent Record

What Republicans Actually Did for Your Town

Far from cutting, recent Republican budgets sent record aid to communities and blocked new cost‑shifts.52

$2.69B
Aid to cities & towns, FY24–25
+$169.1M
Increase in school adequacy aid
Held Flat
County long‑term‑care costs (no shift to county taxpayers)
+$7.5M
More Meals & Rooms revenue to your town in FY26 — local share raised to 30% and protected
What This Is Really About

“Downshifting” Is the Setup. An Income Tax Is the Pitch.

Keep asking why they need you angry about property taxes. The Democrat “solution” has always pointed to the same place: a broad‑based income or sales tax — and the one thing that keeps New Hampshire free and affordable is that we don’t have one. Don’t let a made‑up word talk you into giving it up.

A mousetrap baited with a gold coin
The real goal isn’t relief. It’s a brand-new income tax.
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

Recent Republican budgets sent towns record aid — roughly $2.69 billion in FY24–25, 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 — the very party now blaming Republicans for it.3

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Sources

Every claim, cited.

  1. NH Municipal Association, “The Impact of State Downshifting on Local Property Tax Burdens” (op‑ed advancing the $3B estimate) — nhmunicipal.org
  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%→0%, 2009 statute, 2012 court ruling) — nhrs.org
  4. NH Democratic Party budget site & press (talking points / Rosenwald quote) — nhbudget.nhdp.org
  5. NH House Republican Caucus, FY24–25 Budget (state aid to towns, adequacy increase, county costs) — nhhousegop.com; corroborated by NH Fiscal Policy Institute.
  6. Osborne & Birdsell op‑ed on state aid vs. property taxes (2026).
  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, FY25–26) and average grant (~$4,400) — NH Bulletin / NH Dept. of Education (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 state revenue (nearly doubled 2013–2025; ~24%→~35% of revenue; ~$1.1B SFY25) — NH Fiscal Policy Institute — nhfpi.org. See the full business-tax breakdown.

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.