HB1736 (2006) Detail

Relative to tuition payments made to charter schools.


HB 1736-FN-LOCAL – AS INTRODUCED

2006 SESSION

06-2171

04/10

HOUSE BILL 1736-FN-LOCAL

AN ACT relative to tuition payments made to charter schools.

SPONSORS: Rep. Balboni, Hills 21; Rep. Newton, Straf 1

COMMITTEE: Education

ANALYSIS

This bill requires the department of education to make tuition payments based on the per pupil amount directly to a charter school.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2171

04/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to tuition payments made to charter schools.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Charter and Open Enrollment Schools; Funding. Amend RSA 194-B:11, I to read as follows:

I. There shall be no tuition charge for any pupil attending an open enrollment or charter conversion school located in that pupil’s resident district. Funding limitations in this chapter shall not be applicable to charter conversion or open enrollment schools located in a pupil’s resident district. For any other charter or open enrollment school authorized by the school district, the pupil’s resident district shall pay to such school an amount equal to not less than 80 percent of that district’s average cost per pupil as determined by the department of education using the most recent available data as reported by the district to the department. For any charter school authorized by the state board of education, the [pupil’s resident district] department of education shall pay tuition to the charter school beginning July 1, 2005 and every fiscal year thereafter, in an amount per pupil determined as follows:

(a) For the fiscal year beginning July 1, 2005, $3,500 annual tuition.

(b) For every fiscal year thereafter, the department of education shall determine the tuition rate by adjusting for the average annual percentage rate of inflation based on the northeast region consumer price index for all urban consumers as published by the Bureau of Labor Statistics, United States Department of Labor. The average shall be based on the 4 calendar years ending 18 months before the beginning of the fiscal year for which the tuition rate is to be determined.

(c) Tuition amounts shall be prorated on a per diem basis for pupils attending a school for less than a full school year. To the extent permitted by law, tuition payments shall coincide with the distribution of equitable education grants under RSA 198:42 or on such other terms as are mutually acceptable.

2 State Aid; Education Trust Fund. Amend the introductory paragraph to RSA 198:39, I to read as follows:

I. The state treasurer shall establish an education trust fund in the treasury. Moneys in such fund shall not be used for any purpose other than to distribute adequate education grants to municipalities' school districts and to approved charter schools pursuant to RSA 198:42, and to provide low and moderate income homeowners property tax relief under RSA 198:56-198:61. The state treasurer shall deposit into this fund immediately upon receipt:

3 Effective Date. This act shall take effect 60 days after its passage.

LBAO

06-2171

12/7/05

HB 1736-FN-LOCAL - FISCAL NOTE

AN ACT relative to tuition payments made to charter schools.

FISCAL IMPACT:

      The Department of Education determined this bill will increase state expenditures by $93,732 in FY 2007, $97,747 in FY 2008, $102,043 in FY 2009 and $106,425 in FY 2010. There will be no fiscal impact on county and local expenditures or state, county and local revenue.

METHODOLOGY:

    This bill requires the Department of Education (DOE) to make tuition payments based on the per pupil amount directly to the charter school. The number of students in charter schools and the state contribution amount would remain the same, whichever method of distribution is used. However, the DOE stated this bill would have the DOE function as a local educational agency and that task would be labor intensive. Presently, there is a system for establishing student counts that is agreed to by all in the system. Payments reflect numbers that are collected over time. This bill would require changing the system to a time sensitive information system. Individuals and families that are in the statewide education system are unknown to the DOE. With passage of this bill, verification would be required and a new student tracking system would need to be instituted. The DOE stated that two additional staff positions will be necessary in order to implement this bill. The costs for the positions are as follows:

                      FY 2007 FY 2008 FY 2009 FY 2010

    Salary-Consultant (LG 26-1) $41,789 $43,680 $ 45,630 $ 47,678

    Salary-Program Assistant

    (LG12-1) 23,303 24,200 25,233 26,228

    Benefits 28,640 29,867 31,180 32,519

    Total $93,732 $97,747 $102,043 $106,425

    The Department stated no additional start up costs such as a computer or desk would be needed because a federal grant that supports charter schools provided these items.