Karen Burnett-Kurie: SWEPT does not address inequity in education funding

To The Daily Sun,

I have long said the Statewide Education Property Tax (SWEPT) was a ridiculous method to use in addressing inequity in education funding or for the state to use in meeting its constitutional obligation.

The solution to unfair/inequitable funding for education because we depend on property taxes is not more property taxes.

SWEPT when passed was a temporary "fix" yet, since it passed, the only substantive change has been property rich towns no longer send their excess SWEPT to Concord. As a result SWEPT does nothing to solve inequitable funding. In fact it has become just a notation on a spreadsheet, since the funds collected locally stay local. The state takes credit for money it never touches and SWEPT adds significantly to everyone's property tax burden.

Now the New Hampshire Supreme Court has said it's OK for the state to manage SWEPT this way — contrary to their previous rulings. As a result, SWEPT will continue to do nothing to address the problem. So why have it?

If SWEPT were eliminated then everyone's property tax bill would go down by $1.10 per $1,000 of assessed property value. What a welcome relief. And the state would have to come up with $363 million in education funding in some other way.

Well, in 2024, the interest and dividend tax collected $184.3 million from 10% of NH's taxpayers, and the rate had been reduced to 3%. Reinstatement of the interest and dividend tax, which NH had since 1923, at 5% should bring in around $300 million or virtually all of what is needed. Returning the Business Profit tax ever so slightly would easily provide the balance of needed funds.

It's a simple solution to a temporary fix that has overstayed its welcome.

Karen Burnett-Kurie

Wolfeboro