The Londonderry School Board voted to send its proposed operating budget to the Deliberative Session after holding its annual public hearing, finalizing a spending plan that – unusually – comes in below the district’s Default Budget.
After amendments, the proposed FY27 operating budget stands at $94,960,409, down from the original draft of $95,176,009 presented at the start of the budget season. If voters reject the proposal in March, the Default Budget of $95,234,013 would take effect instead.
Superintendent Dan Black noted earlier in the process that the district intentionally crafted a proposed budget lower than the default, despite overall cost pressures.
“The budget is up by nearly $4 million,” Black said at the outset of budget season, explaining that the district worked to keep the proposed plan as lean as possible.
Tax Rate Impact Slightly Lower Than Default
If approved, the proposed operating budget would result in an estimated FY27 tax rate of $9.87, an increase of 52 cents over FY26, or 5.51%. The Default Budget would raise the tax rate slightly higher, to $9.89, a 53cent increase, or 5.68%.
Black emphasized that while both budgets reflect unavoidable cost increases, the proposed budget offers the lower tax impact.
Drivers of the Increase: Benefits, Salaries, and Pupil Services
During the public hearing, Black outlined the major factors contributing to the year over year increase:
- Health benefits: up $2,366,781
- Salaries: up $1,125,014
- Pupil services: up $145,255
He noted that the district continues to respond to declining enrollment by adjusting staffing through retirements and natural attrition.
“We look for cost saving opportunities without sacrificing too greatly what we offer to our students and the community,” Black said. “We time personnel changes to our program around known retirements and known natural attrition with staff.”
Heading into the hearing, the district had already reduced personnel costs by $558,000 compared to last year’s approved budget.
Students Advocate for Library Assistants
One of the most notable moments of the hearing came when several students spoke in support of restoring funding for library assistants, which had been slated for removal. The cost to reinstate the positions is $21,655.
After hearing the testimony, the School Board voted unanimously to add the funding back into the budget.
Full Day Kindergarten Could Lower Costs Further
Black also noted that if voters approve the full day kindergarten warrant article, the district would consolidate from four buildings to three for grades K–5. That consolidation would reduce both the proposed operating budget and the Default Budget even further, though those savings are not yet reflected in the current figures.
Budget Heads to Voters With Full Support
Both the School Board and the Budget Committee voted unanimously to recommend the proposed operating budget warrant article, sending it to the Deliberative Session with strong institutional backing.
What Is a Default Budget?
New Hampshire towns and school districts operate under SB2, which means voters approve budgets at the ballot box rather than at traditional town meetings. Because of that system, every proposed budget must have a Default Budget calculated alongside it.
How the Default Budget Works
- The Default Budget is not a new budget.
- It is based on the current year’s budget, adjusted only for:
- Contractual obligations (salaries, benefits, multiyear agreements)
- Debt payments
- Legally mandated increases
- Reductions for onetime expenses
No new programs or positions can be added to the Default Budget.
When the Default Budget Takes Effect
If voters reject the proposed operating budget in March, the Default Budget automatically becomes the budget for the next fiscal year.
Why the Default Budget Matters
- It gives voters a baseline option.
- It prevents the district from being left without a budget.
- It can sometimes be higher than the proposed budget, depending on contractual increases and onetime reductions.
In Londonderry This Year
- Proposed Operating Budget: $94,960,409
- Default Budget: $95,234,013
- Result: The proposed budget is lower than the default – a rare situation that often strengthens the case for voter approval.