The Budget Committee opened its Dec. 3 meeting with questions from Committee member Randy Brownrigg about the town’s tax bill and the impact of funds returned by the School Board.
“My concern was, is that the School Board sent back somewhere around $4.1 million. Some of that was used for health insurance, and that went back to the town, and the town uses that money for however it gets used,” said Brownrigg. “I’m trying to figure out where that money went to, and why they came up with $17.11 for the tax bill when there was no showing of how much money came back from the school system. I’ve been over the town side and the school side trying to figure out where that money had come back.”
Brownrigg requested clarification. Town Administrator Roy Sorenson said he had already responded to an email on the topic.
“We do have a posting on the website explaining the breakdown of the tax rate,” Sorenson noted, adding that the New Hampshire Department of Revenue Administration (DRA) sets the base tax rate. He clarified that the School Board returned $3,568,588 according to its paperwork. “Whatever part of that they said they were going to return or whatever their original vote was to return it, that’s a question you’ll need to ask them. I don’t have that answer.”
Sorenson added that the Hudson School District’s impact on the town tax rate was “down 13 cents” and that savings were realized through returned funds and spending cuts.
“Unfortunately, in the year we’re in, the county tax also went up by 18 cents. Basically, it negates any type of gain we would’ve gotten from the schools. Typically, your county tax rates may go up by four or five cents if you look at the past three years,” said Sorenson. “We don’t get a check from the school to the town to say ‘Hey, here’s $3.6 million, do as you please.’ That’s not how it works.”
The School Board remains in contact with the Financial Department on details regarding the returned money. Brownrigg expressed concern about transparency.
“We’re not seeing that as revenue, and I guess we’re just not seeing the trail of how that money comes back. I don’t know if it’s revenue or expenses or what,” he said. “I don’t see where that money comes back.”
Committee member Shawn Jasper explained that school-related funds are separate from the town budget.
“It goes to reduce the taxes, and it’s reported on the forms to DRA,” Jasper said, noting that the figures appear on state forms, not local budget documents. “So, you’re not going to see it in any of the town or school district.”
Further discussion was tabled as the tax rate may change slightly during the budget process.
The next Budget Committee meeting is scheduled for Friday, Dec. 12, at 7 p.m. at Town Hall.
