HB1639 (2008) Detail

Relative to charter school funding and enabling charter schools to receive school building aid.


HB 1639-FN-A-LOCAL – AS INTRODUCED

2008 SESSION

08-2880

04/05

HOUSE BILL 1639-FN-A-LOCAL

AN ACT relative to charter school funding and enabling charter schools to receive school building aid.

SPONSORS: Rep. Casey, Rock 11; Rep. B. Shaw, Hills 16; Rep. Hunt, Ches 7

COMMITTEE: Education

ANALYSIS

This bill increases the annual tuition amount for charter school pupils to $7,000 per pupil and allows charter schools to receive school building aid.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

08-2880

04/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT relative to charter school funding and enabling charter schools to receive school building aid.

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(a) to read as follows:

(a) For the fiscal year beginning July 1, [2006, $3,598] 2008, $7,000 annual tuition.

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

VII. [No school building aid under RSA 198:15-a through 15-h shall be awarded to] Notwithstanding RSA 198:15-a through RSA 198:15-hh, and notwithstanding RSA 198:15-u through RSA 198:15-w, a charter school may receive school building aid for the purpose of acquiring land or buildings, or for constructing, reconstructing, or improving the charter school, [unless the building is owned by the school district, under lease to the charter school, and such lease does not include an option to purchase the building. A charter conversion school shall be eligible for school building aid] as follows:

(a) The amount of the annual grant to any charter school shall be a sum equal to 40 percent of the annual payment of principal on all outstanding borrowings of the charter school for the cost of construction or purchase of school buildings or for the cost of acquiring, developing, or renovating any land, buildings, or facilities to be owned by the charter school and used to educate pupils at the elementary and secondary levels.

(b) Charter schools applying for aid under this paragraph shall comply with department of education rules for school building aid for public school buildings.

(c) If the building ceases to be used as a charter school, or if the charter school governing board ceases operation of the charter school prior to repayment of school building aid funds or ceases operation of the charter school within 10 years of the date of charter approval, whichever is later, the charter school shall repay to the department of education any amounts paid in building aid plus any reasonable attorney’s fees incurred in recovering the amount due.

3 Charter and Open Enrollment Schools; Oversight Committee. Amend RSA 194-B:21, I to read as follows:

I. There is hereby established a joint legislative oversight committee. The committee shall jointly meet at least once a year and shall monitor the effect of this chapter, make recommendations for any legislative changes with respect thereto, and make recommendations to the legislature to reduce the scope of, ease the administration of, simplify the compliance with, and, where appropriate, recommend to the legislature elimination of regulations affecting charter schools [and reduction of the amount of paperwork required in connection with all public education and the state’s regulation thereof]. The committee shall include 3 senators appointed by the president of the senate, 3 members of the house appointed by the speaker of the house, and one member of the state board appointed by the chairperson of the state board who shall serve as a nonvoting member in an advisory capacity.

4 Effective Date. This act shall take effect July 1, 2008.

LBAO

08-2880

Revised 02/19/08

HB 1639 FISCAL NOTE

AN ACT relative to charter school funding and enabling charter schools to receive school building aid.

FISCAL IMPACT:

      The Department of Education states this bill will increase state general fund expenditures by an indeterminable amount in FY 2009 and each fiscal year thereafter, and will increase state education trust fund expenditures by $1,707,552 in FY 2009, $1,940,889 in FY 2010, $2,204,412 in FY 2011, and $2,504,481 in FY 2012. There will be no fiscal impact on state, county, and local revenue or county and local expenditures.

METHODOLOGY:

    The Department of Education states this bill would make charter schools eligible to receive school building aid. The Department states it is unable to estimate a fiscal impact because there is no way to predict the number, type of work, or cost of the projects that may be undertaken by charter schools in the future.

    The Department further states this bill changes the tuition amount paid to charter schools authorized by the state board of education pursuant to RSA 194-B:3-a. During FY 2008, 490 students attend charter schools, and charter schools receive per pupil tuition of $3,706 from the state education trust fund. The tuition amount is adjusted annually based on the consumer price index (CPI) pursuant to RSA 194-B:11, I(b). Under this bill, tuition will be $7,000 in FY 2009, and will be adjusted annually based on the CPI. To calculate estimated change in per pupil tuition the Department assumed the annual CPI increase will be 3%.

                      Current Law This Bill Increase

    FY 2009: $3,832 $7,000 $3,168

    FY 2010: $3,958 $7,231 $3,273

    FY 2011: $4,089 $7,470 $3,381

    FY 2012: $4,224 $7,717 $3,493

    To calculate the anticipated increase in education trust fund expenditures resulting from the change in tuition, the Department assumes the number of children enrolled in charter schools will increase by 10% annually.

    FY 2009: $3,168 x 539 students = $1,707,552

    FY 2010: $3,273 x 593 students = $1,940,889

    FY 2011: $3,381 x 652 students = $2,204,412

    FY 2012: $3,493 x 717 students = $2,504,481