HB 888-FN-A – AS INTRODUCED
2007 SESSION
04/03
HOUSE BILL 888-FN-A
AN ACT relative to instructional and operational costs of providing an adequate education.
SPONSORS: Rep. Gile, Merr 10; Rep. Blanchard, Merr 10; Rep. Gargasz, Hills 5; Rep. Flockhart, Rock 13
This bill provides that the state shall fund certain educational costs related to instruction including classroom teachers, classroom textbooks and materials, professional development, building aid, technical resources, and the state’s share of special education costs.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0889
04/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to instructional and operational costs of providing an adequate education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Purpose; Intent. The general court recognizes that the state has a duty to ensure that every child residing within the state is provided with the opportunity to receive an adequate elementary and secondary education, including kindergarten. The general court further recognizes the minimum standards for public school approval adopted as administrative rules as the recommended curriculum. An adequate education requires the effective transfer of knowledge. This is accomplished most effectively through qualified teachers, and capable and thoughtful instruction that is responsive to the developmental and academic needs and interests of students. The state shall provide an adequate level of support and resources to enable teachers to provide such instruction. This responsibility includes a student-teacher ratio consistent with departmental rules, funding for instructional costs such as teachers’ salaries and professional development, classroom instructional materials including technological resources, school building aid, and special education for disabled students.
2 Cooperative School Districts; State Aid. Amend RSA 195:15 to read as follows:
195:15 State Aid. The state aid to which a cooperative elementary and/or secondary district shall be entitled shall be the total of those shares of the aid to which the pupils attending the cooperative district would have entitled the pre-existing districts, had they remained in the pre-existing districts. For the purposes of crediting the cooperative district’s adequate education cost to the pre-existing districts, each such pre-existing district shall have its adequate education cost [under RSA 198:38, VII] credited against its share of the cooperative school district budget. However, cooperative school districts formed by 2 or more pre-existing districts whose boundaries approximate those of a single township in which they are located shall be treated as a single school district for the purposes of this section.
3 School Money; State Aid for Educational Equality; Definitions. RSA 198:38 is repealed and reenacted to read as follows:
198:38 Definitions. In this subdivision:
I. “Average daily membership in residence” means the average daily membership in residence of pupils in kindergarten through grade 12, as defined in RSA 189:1-d, IV, of the second school year preceding the year in which the aid calculation is made, provided that no kindergarten pupil shall count as more than 1/2 day attendance per calendar day.
II. “Department” means the department of education.
III. “Educationally disabled child” or “ educationally disabled pupil” means the average daily membership in residence of educationally disabled children as defined in RSA 186-C:2, I.
IV. “Municipality” means a city, town, or unincorporated place.
V. “School district” means school district as defined in RSA 194:1 or RSA 195:1.
4 School Money; Instructional Costs of Providing an Adequate Education. RSA 198:40-a is repealed and reenacted to read as follows:
198:40-a Instructional Costs of Providing an Adequate Education; State Aid.
I. For the fiscal year beginning July 1, 2007, and every fiscal year thereafter, the essential elements of an adequate education shall be defined as:
(a) Instructional services from qualified classroom teachers.
(b) Professional development of teachers.
(c) Sufficient classroom textbooks and materials to facilitate quality instruction.
(d) Instructional technology suitable for quality instruction.
(e) Special education services sufficient to provide a free appropriate public education to educationally disabled pupils.
(f) Adequate classroom space for instruction, including school building and educational administration building construction and renovation.
II. For the fiscal year beginning July 1, 2007, and every fiscal year thereafter, the cost of the essential elements of an adequate education as set forth in paragraph I shall be calculated as follows:
(a) The costs of instructional services necessary to provide an adequate education to all public elementary and secondary school pupils shall be charge against the education trust fund established in RSA 198:39. Such cost shall be calculated by determining the sum of the state average public school teacher’s salary plus 10 percent of the state average cost of public school teacher benefits. This sum shall be divided by 20, and the result shall be multiplied by the average daily membership in residence for the school district as determined by the department of education.
(b) The cost of professional development of teachers shall be a charge against the education trust fund established in RSA 198:39. Each school district in the state shall receive an amount equal to not less than $50 per pupil multiplied by the average daily membership in residence for the school district.
(c) The cost of sufficient classroom materials, textbooks, and other instructional supplies shall be a charge against the education trust fund established in RSA 198:39. Each school district in the state shall receive an amount equal to $100 per pupil multiplied by the most recent available adjusted average daily membership in residence for the school district.
(d) The cost of instructional technology to facilitate quality instruction shall be a charge against the education trust fund established in RSA 198:39. Each school district shall receive an amount equal to not less than $50 per pupil multiplied by the average daily membership for the school district.
(e) The state’s share of the cost of programs and services for educationally disabled children as provided in RSA 186-C which shall be a charge against the education trust fund established in RSA 198:39.
(f) The state shall be responsible for making grants available under the school building aid program set forth in RSA 198:15-a through 198:15-hh.
(g) The state shall be responsible for other salaries, materials, programs, or services which are deemed by statute to be instructional in nature and necessary for the provision of an adequate education, all of which shall be a charge against the education trust fund established in RSA 198:39.
III. State aid for instructional costs of providing an adequate education shall be paid to school districts legally responsible for the education of pupils who attend approved schools within the district or in other districts. Payment of such state aid for instructional costs shall be made during the fiscal year in which such aid is due.
IV. Adequate education grants shall be disbursed to school districts in accordance with RSA 198:42.
V. Beginning July 1, 2007, and every July 1 thereafter, state aid for instructional costs of providing an adequate education as defined in paragraph II of this section shall be increased by 3 percent unless otherwise specified in law.
VI. Nothing in this section shall be construed to affect, alter, or modify the provisions of RSA 198:43 relative to additional education expenditures, and RSA 198:48, relative to maintenance of local control.
5 Operational Costs for Providing an Adequate Education. RSA 198:40-b is repealed and reenacted to read as follows:
198:40-b Operational Costs of Providing an Adequate Education. A school district shall be responsible for any expenses or programs not included in RSA 198:40-a which the school district determines are necessary to meet local educational goals and objectives.
6 School Money; Determination of Adequate Education Grants. RSA 198:41 is repealed and reenacted to read as follows:
198:41 Determination of Adequate Education Grants.
I. Except for municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the commissioner of the department of education shall determine the amount of the adequate education grant for a municipality by adding the sums of the calculations under RSA 198:40-a, II, and subtracting from that sum the amount of the education property tax warrant to be issued by the commissioner of the department of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year. If the property tax warrant amount is greater than the sums of the calculations under RSA 198:40-a, II, the difference shall be remitted pursuant to RSA 198:46.
II. For municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the amount of the adequate education grant for each municipality as the lesser of the two following calculations:
(a) The amount calculated in accordance with paragraph I of this section; or
(b) The total amount paid for items of current education expense as determined by the department of education minus the amount of the education property tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year.
III. Reimbursements made under RSA 186-C:18 shall be counted in the school year in which such reimbursements are made.
IV. The commissioner shall by July 1 of each year compile a report of the amount to be paid to each municipality in accordance with RSA 198:42.
7 Reference Changes. Amend the following RSA provisions by replacing “equitable” with “adequate”: RSA 21-N:1, II(c); RSA 193:1, I(c); RSA 193-E:1, II; RSA 193-E:2; the section heading of RSA 193-E:3; RSA 194-B:3, II(i); RSA 195:14, I(c); RSA 195:14, I(d)(2)-(3); RSA 195:14-a, I; the section heading of RSA 198:42; RSA 198:42, I-II; RSA 198:43; RSA 198:48; and RSA 198:48-a, VII-VIII.
8 Reference Changes. Amend the following RSA provisions by replacing “enhanced education” with “education”: RSA 21-J:14-h; RSA 76:3; RSA 76:8, I; RSA 76:8, III; RSA 76:9; RSA 83-F:9; RSA 198:39, I(g); the section heading of RSA 198:46; RSA 198:46, I; RSA 198:47; RSA 198:57, III(a); and RSA 198:57, IV(c).
9 Repeal. RSA 198:40-c, relative to statewide enhanced education tax capacity aid, is repealed.
10 Effective Date. This act shall take effect July 1, 2007.
LBAO
07-0889
Revised 03/20/07
HB 888 FISCAL NOTE
AN ACT relative to instructional and operational costs of providing an adequate education.
FISCAL IMPACT:
The Department of Education has determined this bill will have an indeterminable fiscal impact on state education trust fund expenditures and local revenue in FY 2008 and each fiscal year thereafter. The Department has determined this bill will decrease state general fund expenditures by $32,252,489 in FY 2008, $34,510,163 in FY 2009, $36,925,874 in FY 2010, and $39,510,685 in FY 2011. There will be no fiscal impact on state and county revenue or county and local expenditures.
METHODOLOGY:
The Department assumed the cost of aid in FY 2008 under this bill should be determined using FY 2005 data. The Department calculated the per pupil cost of instructional services under the proposed RSA 198:40-a, II(a) for FY 2008. The Department states it does not have data for average teacher health and dental benefit costs, so the Department assumed the average cost of those benefits in FY 2005 was equal to the 90% of the cost of 2-person HMO and dental insurance offered to state employees in FY 2006.
Average Teacher Salary, FY 2005 $43,941
10% FICA, Retirement, W/C 613
10% Estimated Health & Dental 1,107
TOTAL $45,661
Divided by 20 $2,283
The Department calculated per pupil aid to be distributed in each fiscal as follows, increasing the FY 2008 total by 3% each fiscal year thereafter to account for inflation:
FY 2008 FY 2009 FY 2010 FY 2011
Instructional Services
RSA 198:40-a, II(a) $2,283 - - -
Professional Development
RSA 198:40-a, II(b) 50 - - -
Classroom Supplies
RSA 198:40-a, II(c) 100 - - -
Instructional Technology
RSA 198:40-a, II(d) 50 - - -
TOTAL $2,483 $2,557 $2,634 $2,713
The Department multiplied total per pupil aid for each fiscal year by the estimated average daily membership in residence (ADM-R) to determine the total cost of per pupil grants under the proposed RSA 198:40-a, II(a) through RSA 198:40-a, II(d), as follows.
FY 2008: 198,969 (FY 2005 ADM-R) x $2,483 = $494,040,027
FY 2009: 197,576 (Estimated FY 2006 ADM-R) x $2,557 = $505,201,832
FY 2010: 195,785 (Estimated FY 2007 ADM-R) x $2,634 = $515,697,690
FY 2011: 194,392 (Estimated FY 2008 ADM-R) x $2,713 = $527,385,496
The Department states that in addition to per pupil aid, this bill specifies the cost of catastrophic aid under RSA 186-C is to be included in adequate education grants, and will be paid from the education trust fund. Catastrophic aid is currently funded by the general fund. The Department states catastrophic aid was $30,142,513 in FY 2007, and it expects catastrophic aid payments to increase by 7% in each fiscal year thereafter. Therefore, the Department states general funds expenditures will be reduced by $32,252,489 in FY 2008, $34,510,163 in FY 2009, $36,925,874 in FY 2010, and $39,510,685 in FY 2011.
The Department assumes the cost of school building aid under this bill will continue to be funded by the general fund.