O P I N I O N
THE SOAPBOX
Stand up. Speak up. It’s your turn.
Manchester is approaching a fiscal inflection point and residents deserve to understand exactly why. Decisions being made in Concord are directly shaping the budget challenges our city now faces, and unless we act with urgency, those challenges will only deepen.
In the most recent state budget, a cap was placed on targeted education aid. That cap applies to exactly one community in New Hampshire: Manchester. No other city or town is affected. Beginning next year, Manchester will receive significantly less education funding than it is entitled to under the state’s own formula, amounting to an estimated $10 million loss every single year unless the cap is repealed. That cost does not disappear. It is simply shifted onto local taxpayers.
At the same time, the Manchester School District is confronting a $16.5 million shortfall in the current budget. This is not the result of mismanagement by the district. It is the predictable outcome of years of chronic underfunding, working with budgets that were under what the tax cap allows. We are now reaching the point where those decisions are no longer absorbable. The system is under strain, and that strain is becoming visible. And this is only the beginning.
When you combine today’s $16.5 million gap with next year’s projected $10 million loss in state aid, Manchester is staring down a potential $26 million problem in the very near future. If we build a budget that barely works this year, we are setting ourselves up for deeper and more damaging cuts next year; cuts that will affect students, families, and the broader community.
It is also important for residents to understand that fixing this problem at the state level is not guaranteed. There was an opportunity this year to repeal the targeted aid cap, and six Manchester state representatives voted not to do so; effectively choosing to maintain a policy that shifts more of the tax burden onto Manchester residents. We must continue to push for change in Concord, but we cannot assume that relief will come in time.
This is why it is so important for residents to pay attention to what is happening in Concord. State-level decisions are not abstract; they are directly impacting class sizes, staffing, services, and the overall quality of education in our city. It is also why we must have an honest conversation about the tax cap.
The tax cap was created with good intentions, but it does not reflect the reality we are facing today. It limits our ability to respond to crises. Overriding the tax cap this year is not about excess spending; it is about maintaining essential services and preventing long-term harm. And this is not just a school issue.
The city side of the budget is also in crisis. Public safety, infrastructure, and basic services are all under pressure. The same structural challenges (rising costs and insufficient state support) are affecting every part of municipal government. The tax cap override is about stabilizing the entire city, not just one department.
At the same time, we must be clear: local taxpayers cannot and should not be expected to carry this burden alone. We need state partnership, and we need it now. That includes continuing the fight to repeal the targeted aid cap and ensuring Manchester is treated fairly; like every other community in New Hampshire.
There is another immediate threat on the horizon as well. SB101, the open enrollment bill, is moving forward and is expected to pass. If enacted, it would have a devastating impact on Manchester’s school budget, further destabilizing an already fragile system. The potential financial consequences are significant, and they would only add to the strain on local taxpayers.
Everyone in Manchester should be calling on the Governor to veto SB101.
This moment requires awareness, engagement, and action. The challenges we face did not emerge overnight, and they will not be solved overnight (but ignoring them will only make them worse). Manchester has made real progress over the years. We have invested in our schools, strengthened our community, and built momentum toward a stronger future. We cannot afford to reverse that progress now. The decisions being made (both locally and at the state level) will determine whether Manchester can weather this moment or whether we fall further behind.
This is a turning point. What happens next depends on all of us.
Erin Kerwin is the State Representative for Hillsborough 40 (Manchester Wards 1, 3, 10, 11 and 12)
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