(Opinion) NH businesses: Pay attention to school enrollment

An education public policy change going through the Legislature should be getting business owners’ attention

By: Tiffany Brewster

Would it matter to your business if the public school in your community closed?

That question has come up repeatedly in recent conversations with business leaders across New Hampshire. The reaction is almost always the same: surprise, concern and a resounding yes — it would matter, a lot.

That’s why a major public education policy change now moving through the New Hampshire legislature should be garnering the attention of business owners.

Known as public school open enrollment, this policy would allow students to attend a public school outside their home district, with the student’s home district paying tuition to the receiving district. While the idea is often described as expanding choice, the way open enrollment works — and how New Hampshire funds schools — has important implications for communities and employers.

Other states have adopted open enrollment with mixed results. Where it has worked best, states fund a large share of education costs centrally. New Hampshire does not. Here, public education is funded primarily through local property taxes, which already place significant pressure on municipalities, homeowners and businesses.

School district costs are largely fixed. Losing or gaining a small number of students does not reduce the need for teachers, buses, buildings or heating classrooms. Five students leaving a district does not allow it to run fewer buses or close a classroom.

When students leave but costs remain, districts are left with fewer dollars to cover the same expenses. Over time, that gap has to be filled — often through higher property taxes, staffing reductions, program cuts or consolidation with neighboring districts — in other words, school closures.

Open enrollment also complicates school budgeting and planning. District budgets are voted on locally, while state aid is based on prior-year enrollment. If student numbers shift unexpectedly, districts may be left managing costs they did not — and could not — plan for. That kind of uncertainty is familiar to businesses, and it comes with real risks.

Open enrollment may help some students, but for many families — including employees — attending school in another town isn’t practical. Transportation, work schedules and limited capacity will keep most students in their home districts.

In smaller and rural communities, the loss of even a handful of students can significantly strain a school budget. Schools that are already under pressure may fall further behind, while others become more competitive by attracting students from neighboring towns. That dynamic can pit communities against one another and accelerate consolidation or school closures.

Beyond academics, schools are the heartbeat of a community. They bring neighbors together, provide shelters and gathering spaces, and help build the social fabric that strengthens the entire community. When a school closes, all of these critical functions disappear — a reality that hits rural communities especially hard.

This is not just an education issue. It’s a workforce and community issue.

Businesses rely on strong local schools to develop future workers, retain employees and keep communities attractive places to live and work. When schools struggle, communities become less stable. Housing demand, property values and workforce availability can all be affected.

Education policy shapes economic outcomes — sometimes in ways that are not immediately obvious.

As discussions about open enrollment continue in Concord, the question for business leaders is simple: If decisions made today could affect local tax rates, workforce quality and whether schools in your community remain viable, is this something your business can afford not to pay attention to?

Tiffany Brewster, a resident of Newmarket, is the director of policy and advocacy at New Hampshire Businesses for Social Responsibility, where she helps business leaders navigate workforce, education, housing and economic policy.