Mayor James Donchess speaks with Ward 2 residents during his town hall meeting at Charlotte Avenue Elementary School on Feb. 26. Telegraph photo by CHRISTOPHER ROBERSON

NASHUA – During his recent town hall meeting with Ward 2 residents, Mayor James Donchess described what could happen on the municipal level if federal funding is scaled back.

He said the latest budget proposal from the U.S. House of Representatives includes slashing Medicaid by $880 billion. According to the state, 16,778 Nashua residents, many of whom are children, rely on that program for healthcare.

“Nearly one in five people in Nashua depend on Medicaid,” Donchess said during the Feb. 26 meeting at Charlotte Avenue Elementary School.

He also called attention to Title I of the Elementary and Secondary Education Act, which augments state and local funding for children in low-income households. There are currently six schools in the city that receive Title I funding. If those federal dollars are lost, Donchess said 50 Nashua teaching jobs would be lost as well.

In addition, Donchess said the city receives $600,000 per year in Home Funds from the U.S. Department of Housing and Urban Development. He said that money is used to finance affordable housing and was instrumental in building the Monahan Manor Apartments on Myrtle Street.

The city also relies on $600,000 per year from the Community Block Grant as well as a $7 million grant to remove lead from apartment buildings.

In other news, Donchess addressed the city’s tax rate, which is currently set at $15.90 per $1,000 of assessed property value.

“I get that property taxes are high,” he said, adding that the average tax bill is about $8,000.

However, he said the tax rate stems from the lack of education funding on the state level.

Donchess said the average cost of an adequate education in New Hampshire is now $21,000 per student. Yet, state education officials only contribute $4,100 with the belief that expenses such as heating the schools in the winter are not part of an adequate education. Therefore, 80 percent of education funding must come from the local level.

He said Nashua’s property taxes would drop by 60 percent if the state were to increase its education funding to $21,000 for each student.

Donchess also emphasized the consequences of making any substantial reductions to the city’s budget. As an example, he said a four percent decrease would result in a $12 million loss. Using that scenario, Donchess said the budget for Nashua Fire Rescue would be cut in half.

He also said the Police Department needs 17 more officers and that the Division of Public Works needs another 10 drivers. Donchess said one of the challenges with hiring DPW drivers is that they must have a Commercial Driver’s License.

“There are very few people out there who have these,” he said.

Although 75 percent of the city’s budget is used for salaries and benefits, Donchess maintained that Nashua is one of the more conservative communities when it comes to employee compensation.

“We don’t overpay these people,” he said.

The Ward 3 town hall is scheduled for 6 p.m. on March 10 at Amherst Street Elementary School, 71 Amherst St.