Concerns with Public School Open Enrollment in NH
We, the undersigned New Hampshire businesses, are deeply concerned about legislation that would implement statewide public school open enrollment without first addressing how public education is funded in our state.
A truly business-friendly New Hampshire should be defined as a state where communities are strong, essential services are reliable, and people want to live, work, and build their futures. Public schools are core to that equation.
Since New Hampshire funds public schools through local property taxes, an open enrollment model would allow tuition dollars to follow students out of their home districts even though district costs remain fixed. Losing a small number of students does not reduce the need for teachers, transportation, facilities, or building operations. Funds would leave districts without a corresponding reduction in costs.
Over time, this creates real financial pressure on school districts and municipalities. Communities may be forced to raise property taxes, cut staff and programs, consolidate districts, or close schools altogether. In smaller and rural communities, the loss of even a handful of students can be destabilizing.
Beyond academics, schools are the heartbeat of a community. They bring neighbors together, provide shelters and gathering spaces, and strengthen the social fabric that keeps towns viable. When a school closes, these functions disappear — a loss felt most acutely in rural areas that already struggle to retain families and employers.
School instability also affects property values and community desirability. Families factor school quality and stability into housing decisions, and uncertainty can depress demand in some communities while driving up costs in others. This dynamic exacerbates New Hampshire’s existing housing challenges by reducing availability in some areas, increasing prices in others, and making it harder for workers to live near their jobs.
We are also concerned that open enrollment does not function like a free market. Communities with higher property values and stronger tax bases are better positioned to absorb fixed costs and attract students, while less-resourced towns lose funding and stability. Some districts may benefit incoming tuition dollars, while sending districts are left with financial gaps they cannot plan around.
This is not just an education issue. It is a workforce and economic issue. Businesses depend on strong schools, stable communities, available housing, and accessible childcare to recruit and retain employees. When essential services erode, staffing becomes harder and New Hampshire becomes less competitive.
If New Hampshire wants to be truly business-friendly, it means investing in the essential systems that allow communities to function and businesses to staff, grow, and compete. Education policy must strengthen — not destabilize — local schools and communities. We urge legislators to address the school funding model before advancing public school open enrollment.