SB 307-FN – AS AMENDED BY THE SENATE
02/23/06 0955s
2006 SESSION
04/09
SENATE BILL 307-FN
AN ACT relative to catastrophic special education funding.
SPONSORS: Sen. Estabrook, Dist 21; Sen. Green, Dist 6; Sen. Foster, Dist 13; Sen. D’Allesandro, Dist 20; Rep. M. Smith, Straf 7; Rep. Rous, Straf 7; Rep. W. P. Campbell, Straf 3; Rep. Naro, Graf 7
This bill removes the provision requiring proration of catastrophic aid funds in years where the appropriation is insufficient and requires the state to appropriate additional funds sufficient to meet the amount of catastrophic aid needed by school districts.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/23/06 0955s
06-2795
04/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to catastrophic special education funding.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Special Education; State Aid. Amend RSA 186-C:18, III(a) to read as follows:
(a) The state board of education through the commissioner, department of education, shall distribute aid [available] under this paragraph as entitlement to such school districts as have a special education pupil for whose costs they are responsible, for whom the costs of special education in the fiscal year exceed 3½ times the estimated state average expenditure per pupil for the school year preceding the year of distribution. [If in any year, the amount appropriated for distribution as catastrophic special education 186-C:18 aid in accordance with this section is insufficient therefor, the appropriation shall be prorated proportionally based on entitlement among the districts entitled to a grant.] If there are unexpended funds appropriated under this paragraph at the end of any fiscal year, such funds shall be distributed for court-ordered placements under RSA 186-C:19-b. In addition, the state may designate up to $250,000 [of the funds which are appropriated as required by this paragraph,] for each fiscal year, to assist those school districts which, under guidelines established by rules of the state board of education, may qualify for emergency assistance for special education costs. Upon application to the commissioner of education, and approval by the commissioner, such funds may be accepted and expended by school districts in accordance with this chapter; provided, however, that if a school district has received emergency assistance funds for certain educationally disabled children, it shall not receive catastrophic special education aid for those same educationally disabled children. If any of the funds designated for emergency assistance under this paragraph are not used for such emergency assistance purposes, the funds shall be used to assist school districts in meeting catastrophic cost increases in their special education programs as provided by this paragraph.
2 New Subparagraph; Special Education; State Aid. Amend RSA 186-C:18, III by inserting after subparagraph (c) the following new subparagraph:
(d) In any fiscal year, if the total amount of catastrophic aid requested by school districts exceeds the amount appropriated to the department for catastrophic aid, the governor is authorized to draw a warrant for such sum as is necessary to satisfy the excess amount of the state’s obligation under this section. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
3 Effective Date. This act shall take effect July 1, 2007.
LBAO
06-2795
Amended 3/6/06
SB 307 FISCAL NOTE
AN ACT relative to catastrophic special education funding.
FISCAL IMPACT:
The Department of Education indicates this bill, as amended by the Senate (Amendment #2006-0955s), will increase state general fund expenditures and local revenue by $9,070,248 in FY 2007, and by an indeterminable amount in FY 2008 and each year thereafter. There will be no fiscal impact on state and county revenue or county and local expenditures.
METHODOLOGY:
The Department indicates this bill removes the pro-rata reduction that currently occurs when the amount calculated for catastrophic aid exceeds the amount appropriated, and allows for an additional $250,000 to be paid for emergency special aid needs. The Department estimates that between the 2002-2003 and 2003-2004 school years, reimbursements for catastrophic aid increased by 9.564%. Assuming reimbursements will continue to increase at 9.564% annually, and $250,000 would be paid for emergency special aid needs, the Department estimates catastrophic aid reimbursements under this bill as follows:
FY 2007 $41,260,248
FY 2008 $45,182,468
FY 2009 $49,479,809
FY 2010 $54,188,148
The Department states the appropriation for catastrophic aid is $32,190,000 for FY 2007. As a result, this bill would increase state general fund expenditures over the current appropriated amount by $9,070,248 in FY 2007. The additional cost in future years will depend on appropriations in the operating budget, and those amounts are not known. This bill however, provides language authorizing the governor to draw a warrant from the general fund for the amount needed to fund fully the states share of catastrophic aid.