Revision: Jan. 21, 2010, midnight
CHAPTER 6
HB 100-FN-A-LOCAL – FINAL VERSION
04Jan2006… 0162h
2006 SESSION
04/09
HOUSE BILL 100-FN-A-LOCAL
AN ACT amending the formula for funding public education.
SPONSORS: Rep. Weyler, Rock 8; Rep. Hager, Merr 12; Rep. Craig, Hills 9; Rep. Nordgren, Graf 9; Sen. Odell, Dist 8; Sen. Gallus, Dist 1; Sen. D'Allesandro, Dist 20; Sen. Foster, Dist 13; Sen. Martel, Dist 18
This bill amends the calculation and reporting of the statewide enhanced education tax.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
04Jan2006… 0162h
05-1067
04/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT amending the formula for funding public education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
6:1 School Money; Determination of Grants and Excess Tax. Amend RSA 198:41 to read as follows:
198:41 Determination of Grants and Excess Tax.
I. For each municipality the department of education shall determine the total education grant as follows:
(a) For the fiscal years beginning July 1, 2005 and July 1, 2007, add the amounts determined in RSA 198:40-a, RSA 198:40-b, and RSA 198:40-c for each municipality. Such amount shall also be used to determine a municipality’s grant in the second year of such bienniums.
(b)(1) For the fiscal year beginning July 1, 2005, if a municipality’s education grant as determined in subparagraph (a) is less than 85 percent of the education grant determined for such municipality for the fiscal year beginning July 1, 2004, under the version of RSA 198:41 in effect on July 1, 2004, then the municipality shall receive a transition grant equal to the excess of 85 percent of the education grant determined for such municipality for the fiscal year beginning July 1, 2004 over the municipality’s grant determined in subparagraph (a).
(2) For the fiscal year beginning July 1, 2006, an eligible municipality shall receive the same amount as determined under subparagraph (b)(1).
(c)(1) For the fiscal year beginning July 1, 2007, if a municipality’s education grant as determined in subparagraph (a) is less than 85 percent of the municipality’s education grant determined in subparagraph (b), then the municipality shall receive a transition grant equal to the excess of 85 percent of the education grant determined for such municipality for the fiscal year beginning July 1, 2006 over the municipality’s grant determined in subparagraph (a).
(2) For the fiscal year beginning July 1, 2008, an eligible municipality shall receive the same amount as determined under subparagraph (c)(1).
(d) The total education grant shall be the sum of subparagraphs (a), (b), and (c).
(e) The department of education shall notify municipalities of the estimated amounts of grants by the November 15 which precedes the fiscal year for which aid is determined.
II. Annually, and in conjunction with setting tax rates under RSA 21-J:35, the department of revenue administration shall determine the amount of excess enhanced education tax for each municipality as follows:
(a) If the average daily membership of the determination year is 2 or less, zero.
(b) If the average daily membership of the determination year is greater than 2, then [the amount of the excess enhanced education tax to be remitted pursuant to RSA 198:46 shall be the greater of] revenues from all applicable sources including the municipality’s equitable education grant, but excluding the statewide enhanced education tax assessment, shall be subtracted from the total school appropriation, including appropriations of village districts for school purposes, for the year for which the tax rate is being set. If the resulting balance is:
(1) [Zero; or] Greater than the statewide enhanced education tax assessment, then the excess statewide education tax shall be zero.
(2) [The remainder when the determination year local tax assessed for schools pursuant to RSA 76:8 and the determination year statewide enhanced education tax that was not excess remitted to the state is subtracted from the statewide enhanced education tax to be assessed in the year for which aid is being calculated] Less than the statewide enhanced education tax assessment, then the balance shall be subtracted from the statewide enhanced education tax assessment. The remainder shall be excess statewide enhanced education tax to be remitted under RSA 198:46.
III. [The department of education shall notify municipalities of the estimated amounts of grants and excess statewide enhanced education tax payments by the November 15 which precedes the fiscal year for which aid is determined.
IV. For the year in which aid is being calculated,] Total state aid for an equitable education shall be the sum total of [all] grants in paragraph I; plus the sum total of the statewide enhanced education tax assessed pursuant to RSA 76:8, less the total amount of excess statewide enhanced education tax [to be] remitted pursuant to RSA 198:46.
6:2 New Subparagraph; Determination of Excess Enhanced Education Tax Payments; Version Effective July 1, 2009. Amend RSA 198:41, I, as inserted by 2005, 257:8, by inserting after subparagraph I(b) the following new subparagraph:
(c) The department of education shall notify municipalities of the estimated amounts of grants by the November 15 which precedes the fiscal year for which aid is determined.
6:3 Excess Statewide Enhanced Education Tax Payment. Amend RSA 198:46 to read as follows:
198:46 Excess Statewide Enhanced Education [Property] Tax Payment.
I. [The department of revenue administration shall annually determine a municipality’s statewide enhanced education tax liability pursuant to RSA 198:41.] Any excess statewide enhanced education tax shall be remitted to the department of revenue administration on or before March 15 of the tax year in which the excess occurs.
II. The commissioner of the department of revenue administration shall [calculate and] collect from the municipality the excess tax and pay the excess tax over to the state treasurer for deposit in the education trust fund established by RSA 198:39.
III. The amount of such excess to be remitted shall not include any income derived from the investment of funds by the municipal treasurers under RSA 41:29 and RSA 48:16. Any funds remaining after full payment of the excess tax required in paragraph I shall become available for unrestricted use by the municipality.
6:4 Assessment and Abatement of Taxes; Commissioner’s Warrant. Amend RSA 76:8, II to read as follows:
II. The commissioner shall issue a warrant under the commissioner’s hand and official seal for the amount computed in paragraph I to the selectmen or assessors of each municipality by December 15 directing them to assess such sum and pay it to the municipality [for the use of the school district or districts and, if there is an excess statewide enhanced education tax payment due pursuant to RSA 198:46, directing them to assess the amount of the excess payment and pay it to the department of revenue administration for deposit in the education trust fund]. Such sums shall be assessed at such times as may be prescribed for other taxes assessed by such selectmen or assessors of the municipality.
6:5 Cooperative School Districts; Certification of District Taxes. Amend RSA 195:14, I(c)-(d) to read as follows:
(c) The commissioner of revenue administration shall certify to the state department of education the [total] amount to be apportioned among the pre-existing school districts. [Such total] This amount shall [include] be the balance before the equitable education [cost for the district and the amount above the cost of an equitable education to be assessed and collected as local educational taxes] grant revenues are applied.
(d) Unless the provisions of RSA 195:14-a are adopted, the state department of education shall determine [the] each municipality’s proportional share of the [costs above an equitable education to be assessed as local education taxes] net appropriation after application of the grants as follows:
(1) First, the department shall determine each pre-existing district’s proportional share of the [total] amount to be apportioned based on the cooperative school district formula.
(2) Second, the department shall then deduct each pre-existing school district’s equitable education [cost from its proportional share of the total amount to be apportioned] grant.
(3) [Third, the department shall notify the commissioner of revenue administration of its determinations.
(4)] If the resulting amount [determined in subparagraph (2) for any pre-existing district] is less than zero, the department shall reduce the equitable education grant [payable to the cooperative district under RSA 198:42] under RSA 198:41 by the difference [between the amount determined in subparagraph (1) and the pre-existing district’s equitable education cost].
(4) The department shall notify the commissioner of the department of revenue administration of its determination.
6:6 Cooperative School Districts; Alternative Method of Apportioning Operating Costs. Amend RSA 195:14-a, I to read as follows:
I. As an alternative to the apportionment of operating costs set forth in RSA 195:14, the cooperative school board may fix a specific percentage of the state equitable education grant amount received in a given year to be applied to the operating costs of the cooperative school district, before the apportionment of remaining cooperative school district operating costs. Such percentage shall not be less than zero percent and not more than 100 percent and shall be the same in each city or town in the cooperative school district.
6:7 Applicability. Upon the effective date of this act, any excess statewide enhanced education tax remitted to the state by a municipality for the tax year ending March 31, 2006 shall be refunded or adjusted, as the case may be, in accordance with the provisions of this act. Any expenditure of such refund by a municipality shall comply with RSA 31:95-b.
6:8 Effective Date. This act shall take effect upon its passage.
Approved: February 10, 2006
Effective: February 10, 2006