David Preece

Letter of Support for HB 1409-FN To the House Ways and Means Committee Dear Chair and Members of the Committee, I am writing in strong support of HB 1409-FN, which directs the remainder of net video lottery terminal (VLT) revenue into New Hampshire’s Education Trust Fund for public school aid. This bill is not just good fiscal policy — it is now a constitutional necessity. The New Hampshire Supreme Court has made it unmistakably clear that the State of New Hampshire has a non-delegable, enforceable obligation to fund an adequate public education. In its most recent Claremont rulings, the Court reaffirmed that the state must not only define the cost of an adequate education, but must pay for it with state revenue — not local property taxes. The current system, which forces towns to raise more than two-thirds of school funding locally, was again found to be unconstitutional. HB 1409 provides one of the most responsible and immediate tools available to the Legislature to meet that obligation. Video lottery terminals are a state-regulated, state-authorized revenue stream. These funds do not come from local taxpayers. They do not require new taxes. They do not burden municipalities. And yet today, a significant portion of this revenue is diverted away from education while towns struggle under crushing school tax rates. That makes no sense — legally, fiscally, or morally. By directing 100% of the net VLT revenue to the Education Trust Fund, HB 1409 ensures that money generated by a state enterprise is used for a core state constitutional duty. That is exactly what the Court envisioned when it ruled that education funding must rely on broad-based, statewide revenue sources, not local property taxes. This bill will not solve New Hampshire’s school-funding crisis by itself — but it will move us meaningfully in the right direction. Every dollar sent to the Education Trust Fund is a dollar that reduces the pressure on homeowners, renters, and small businesses who are currently subsidizing a state responsibility. Most importantly, HB 1409 respects the principle that every child in New Hampshire deserves an equal opportunity, regardless of their ZIP code or property tax base. The Supreme Court has spoken. The Constitution is clear. Now it is up to this Legislature to act. HB 1409-FN is one of the most direct, responsible, and legally sound steps we can take to begin complying with the Court’s rulings and restoring fairness to school funding. I urge the Committee to recommend Ought to Pass. Respectfully, David John Preece State Representative, Hillsborough District 17