HB904 (2008) Detail

Defining an adequate education and relative to calculating the cost of an adequate education and adequate education grants.


HB 904-FN-LOCAL – AS INTRODUCED

2007 SESSION

07-0007

04/09

HOUSE BILL 904-FN-LOCAL

AN ACT defining an adequate education and relative to calculating the cost of an adequate education and adequate education grants.

SPONSORS: Rep. Casey, Rock 11; Rep. Wells, Rock 8; Rep. Hamm, Merr 4; Rep. Lockwood, Merr 6

COMMITTEE: Education

ANALYSIS

This bill:

I. Defines an adequate education and revises the method for determining the cost of an adequate education.

II. Establishes a formula for distributing adequate education grant money to school districts and charter schools.

III. Replaces references to “equitable education” with “adequate education.”

IV. Requires the employment of a superintendent of a school administrative unit shall be terminated after 5 consecutive years of noncompliance with statewide assessment performance requirements.

V. Provides that voters may elect to replace local school board members by special election after 5 consecutive years of noncompliance with statewide assessment performance requirements.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0007

04/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT defining an adequate education and relative to calculating the cost of an adequate education and adequate education grants.

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

1 New Section; Adequate Public Education; Definition of Adequate Education and Adequate Education Costs. Amend RSA 193-E by inserting after section 2 the following new section:

193-E:2-a Definition of an Adequate Education. An adequate education shall include regular course instruction in English, math, physical sciences, biological sciences, United States and New Hampshire history, United States and New Hampshire government, civics, economics, world history, geography, health education, physical education, arts education, information and communication technologies, as well as special education, pupil guidance, psychological guidance, speech and hearing pathology, English proficiency, physical therapy, occupational therapy, state-required pupil assessment, and vocational instruction.

2 School Money; Definitions. RSA 198:38 is repealed and reenacted to read as follows:

198:38 Definitions. In this subdivision:

I. “Average annual rate of inflation” means 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, for the 4 calendar years ending 18 months before the beginning of the fiscal year for which aid is to be determined.

II. “Average daily membership in residence” or “ADMR” 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 calculation is made, provided that no kindergarten pupil shall count as more than 1/2 day attendance per calendar day.

III. “Charter school” means a charter school established under RSA 194-B.

IV. “Commissioner” means the commissioner of the department of education.

V. “Department” means the department of education.

VI. “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.

VII. “Municipality” means a city, town, or unincorporated place.

VIII. “School district” means a school district as defined in RSA 194:1 or a cooperative school district as defined in RSA 195:1.

3 School Money; Adequate Education Grants. RSA 198:40-a is repealed and reenacted to read as follows:

198:40-a Adequate Education; Determination of Cost.

I. In a fiscal year, the cost of an adequate education shall include the sum total of each school district’s budgeted expenditures for:

(a) Regular course instruction in English, math, physical sciences, biological sciences, United States and New Hampshire history, United States and New Hampshire government, civics, economics, world history, geography, health education, physical education, arts education, information and communication technologies, and credentialed teachers’ salaries and benefits, classroom supplies, and textbooks required for regular course instruction.

(b) Special education.

(c) Pupil guidance.

(d) Psychological guidance.

(e) Speech and hearing pathology.

(f) English proficiency.

(g) Physical therapy.

(h) Occupational therapy.

(i) State-required pupil assessment.

(j) Vocational instruction.

II. From the sum total in paragraph I, subtract:

(a) Teacher assistant, non-credentialed teachers and substitute teacher salaries.

(b) Professional services.

(c) New equipment, including computer equipment.

(d) Professional dues and fees.

(e) Professional meeting costs.

(f) Driver education instructor salaries.

(g) Driver education costs.

(h) Travel expenses.

(i) Vocational salaries and costs.

(j) Teacher training.

(k) Kindergarten costs.

(l) Preschool costs.

(m) Bilingual education.

III. To determine the adequate education grant, from the amount remaining in paragraph II, subtract:

(a) All federal and state education funds disbursed to schools to provide an adequate education as defined in RSA 193-E:2-a.

(b) Education property tax revenues raised within a municipality pursuant to RSA 76:3.

(c) From the school district providing education services, adequate education costs for pupils who receive education services in a school district other than the pupil’s resident school district.

IV. The department of education shall use the most recently submitted school district balance sheet, currently known as the DOE-25 report, as the basis for calculating the cost of an adequate education.

4 School Money; Adequate Education Grants. RSA 198:40-b is repealed and reenacted to read as follows:

198:40-b Adequate Education; Determination of Grants.

I.(a) Beginning July 1, 2007, and every fifth fiscal year thereafter, the commissioner shall, for each school district or charter school, calculate an adequate education grant amount based on the cost of an adequate education set forth in RSA 198:40-a, and shall make adequate education grant payments directly to the school district or charter school. Beginning July 1, 2007, and every fifth fiscal year thereafter, the commissioner shall, for each school district or charter school, calculate a per pupil adequate education grant amount by dividing the amount of adequate education grants for non-special education categories distributed in the school district or charter school by the average daily membership in residence in such school district or charter school. The commissioner shall also calculate a per pupil adequate education grant amount for special education by dividing the amount of adequate education grants for special education categories, including costs for special education instruction, psychological guidance, speech and hearing pathology, physical therapy, and occupational therapy, as adjusted according to RSA 198:40-a and distributed in the school district or charter school by the average daily membership in residence of educationally disabled pupils in such school district or charter school.

(b) For each of the intervening fiscal years, the commissioner shall:

(1) Adjust a school district’s or charter school’s adequate education grant amount by the average annual rate of inflation;

(2) Adjust a school district’s or charter school’s adequate education grant amount by determining any change in the average daily membership in residence from the previous fiscal year by multiplying the per pupil adequate education grant for non-special education categories amount by the change in the average daily membership in residence from the previous fiscal year, and increasing or decreasing the adequate education grant amount by such amount; and

(3) Adjust a school district’s or charter school’s adequate education grant for special education categories amount by determining any change in the average daily membership in residence of educationally disabled children from the previous fiscal year by multiplying the per pupil adequate education grant for special education categories amount by the change in the average daily membership in residence from the previous fiscal year, and increasing or decreasing the adequate education grant amount by such amount.

II.(a) Adequate education grant moneys shall be used only for a school district’s or charter school’s adequate education expenses pursuant to RSA 198:40-a and shall not be applied directly or indirectly to the reduction of a municipality’s property tax rate.

(b) The commissioner shall make adequate education grant payments directly to the school district or charter school in accordance with RSA 198:42.

III. Any changes to the amount of a school district’s or charter school’s adequate education grant shall be made after school districts or charter schools have adopted their annual budgets.

IV. In this section, “non-special education categories” means the cost of regular course instruction, pupil guidance, and English proficiency as adjusted pursuant to RSA 193-E:2-a, I(a).

5 School Money; Adequate Education Grant Audits. RSA 198:40-c is repealed and reenacted to read as follows:

198:40-c Adequate Education Grant Audits.

I. Annually, the commissioner shall conduct random audits of the DOE-25 reports provided by school districts and expense reports submitted by charter schools, to monitor the accuracy of adequate education grant calculations and the annual costs used to calculate the grant. The commissioner shall audit a minimum of 20 percent of school districts and charter schools each year. In addition, the commissioner shall conduct random audits of DOE-25 reports, not less than 10 percent of which shall be performed on previously audited school districts and charter schools to verify correct expenditure reporting.

II. If the audit determines that a school district’s or charter school’s adequate education grant was greater than it should have been for the fiscal year, the department shall, in the next fiscal year, reduce the school district’s or charter school’s adequate education grant by the amount of the excess.

6 School Money; Adequate Education Grant Distribution Schedule. RSA 198:42 is repealed and reenacted to read as follows:

198:42 Grant Distribution Schedule; Appropriation.

I. The grant determined in RSA 198:40-b shall be distributed to each municipality’s school district or to a charter school, from the education trust fund in 4 payments of 20 percent on September 1, 20 percent on November 1, 30 percent on January 1, and 30 percent on April 1 of each school year; provided that for a dependent school district, the grant determined in RSA 198:40-b shall be distributed to the municipality, which shall appropriate and transfer the grant funds to its dependent school department.

II. For the fiscal year beginning July 1, 2007, and every fiscal year thereafter, the amount necessary to fund the grants under RSA 198:40-b is hereby appropriated to the department from the education trust fund created under RSA 198:39. The governor is authorized to draw a warrant from the education trust fund to satisfy the state’s obligation under this section. Such warrant for payment shall be issued regardless of the balance of funds available in the education trust fund. If the balance in the education trust fund, after the issuance of any such warrant, is less than zero, the commissioner of the department of administrative services shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the distribution of equitable education grants.

III. The department of education shall certify the amount of each grant to the state treasurer and direct the payment thereof to the school district or charter school. When a payment of a grant is made to a school district, the municipality on whose behalf the payment is made shall receive notification from the state treasurer of the amount of the payment made to its school district or districts.

7 School Attendance; Duty of Parent. Amend RSA 193:1, I(c) to read as follows:

(c) The relevant school district superintendent has excused a child from attendance because the child is physically or mentally unable to attend school, or has been temporarily excused upon the request of the parent for purposes agreed upon by the school authorities and the parent. Such excused absences shall not be permitted if they cause a serious adverse effect upon the student’s educational progress. Students excused for such temporary absences may be claimed as full-time pupils for purposes of calculating state aid under RSA 186-C:18 and [equitable] adequate education grants under RSA [198:41] 198:40-b.

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

XI. Any money appropriated in the budget for matching charter school grants that remains unused after the department of education issues matching grants to eligible recipients under paragraph X shall be used to provide a one-year transitional grant to public school districts that have lost pupils as a result of the establishment of a charter school, and have paid tuition to the charter school in cash pursuant to subparagraph IX(a). For the first year in which a public school pupil leaves the public school and enrolls in a charter school, the school district that loses the pupil shall be eligible for a charter school transitional grant beginning July 1, 2004 and every fiscal year thereafter, in an amount per pupil equal to the amount determined in RSA [198:41] 198:40-b. Such transitional grants shall be administered by the state board of education which shall have the authority to determine eligibility and the amount of money to be awarded to school districts under this section, subject to the amount appropriated in the budget.

9 Cooperative School Districts; Certification of District Taxes. Amend RSA 195:14, I(d)(3) to read as follows:

(3) If the resulting amount is less than zero, the department shall reduce the [equitable] adequate education grant under RSA [198:41] 198:40-b by the difference.

10 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.

11 Maintenance of Local Control. Amend RSA 198:48 to read as follows:

198:48 Maintenance of Local Control. Distributions under RSA 198:42 are based on [equitable] adequate education costs determined in RSA [198:41] 198:40-b and are independent of how the municipalities decide to spend the distributions or other funds they may raise for education. Notwithstanding any other provision of law, nothing in this subdivision is intended in any way to limit or control how school districts operate or spend their budgets except that [equitable] adequate education grants must be expended for educational purposes. [Equitable] Adequate education grants shall not be considered unanticipated funds under RSA 198:20-b.

12 Alternative Kindergarten Programs. Amend RSA 198:48-a, VII and VIII to read as follows:

VII.(a) Upon the effective date of this paragraph, and for each fiscal year through June 30, 2003, an [equitable] adequate education grant of $1,200 per pupil shall be distributed to school districts, from the education trust fund created in RSA 198:39, for the education of its resident kindergarten pupils enrolled in an approved alternative kindergarten program established under this section.

(b) Once pupils enrolled in an approved alternative kindergarten program have been counted in the average daily membership in residence, school districts shall receive, for each such pupil, an [equitable] adequate education grant calculated in accordance with [RSA 198:41 through RSA 198:42] RSA 198:40-b.

VIII. Notwithstanding the provisions of this section, alternative kindergarten programs which were approved and in effect prior to April 29, 1999 may continue to operate and shall continue to receive per pupil [equitable] adequate education grant amounts in accordance with [RSA 198:41 through RSA 198:42] RSA 198:40-b.

13 School Performance and Accountability; Definitions. Amend RSA 193-H:1, IV to read as follows:

IV. “Statewide assessment” means the New [Hampshire education improvement and assessment program as established under RSA 193-C] England common assessment program annual test.

14 School Performance and Accountability; Statewide Performance Targets. Amend RSA 193-H:2, I to read as follows:

I. On or before the 2013-2014 school year, schools shall ensure that [all] pupils not receiving special education or special education and related services under RSA 186-C are performing at the [basic] proficient level or above on the statewide assessment [as established in RSA 193-C] in the grades for which the test is available.

15 School Performance and Accountability; Schools in Need of Improvement. Amend RSA 193-H:3 to read as follows:

193-H:3 Identification and Public Disclosure of Schools in Need of Improvement.

I. The commissioner shall annually compile and disseminate to the governor and council, the president of the senate, the speaker of the house of representatives, local school boards, superintendents of schools, and the public, and shall make available on the department website, a list of schools that are not meeting the statewide performance targets, or the statewide assessment performance requirements for 3 consecutive school years, as established in RSA 193-H:2.

II. A school or school district designated by the commissioner as not meeting statewide performance targets, or the statewide assessment performance requirements for 3 consecutive school years, shall have 30 days from the date of the report to appeal such designation to the state board of education.

16 New Paragraphs; School Performance and Accountability; Local Education Improvement Plan. Amend RSA 193-H:4 by inserting after paragraph IV the following new paragraphs:

V. Notwithstanding any provision of law to the contrary, the state board of education shall revoke the approval of a school or school district which fails to meet the statewide assessment performance requirements under RSA 193-H:2, I for 3 consecutive school years until such time as the school or school district demonstrates performance on the statewide assessment which complies with RSA 193-H:2, I.

VI. A school or school district that fails to meet the statewide assessment performance requirements under RSA 193-H:2, I for 5 consecutive school years shall constitute cause for termination of the school administrative unit superintendent’s employment contract. The school board shall terminate the employment of the superintendent upon notification from the department of education of the fifth consecutive year of noncompliance with the statewide assessment performance requirements under RSA 193-H:2, I. The school board shall immediately initiate a search for a new superintendent and shall approve a replacement within 6 months of the date of the previous superintendent’s termination. This paragraph shall only apply to a person who was employed as superintendent for all 5 years of noncompliance.

VII.(a) Notwithstanding RSA 197:2, and RSA 671:1-2, a school district that fails to meet the statewide assessment performance requirements under RSA 193-H:2, I for 5 consecutive school years shall, as soon as practicable, hold a special election for the sole purpose of asking the voters of the school district if all seats on the school board shall be declared vacant, and if so, to elect new school board members. The warrant for the special meeting shall be prepared by the school district clerk and signed by the school district moderator and shall contain 2 ballot questions. The first ballot question shall ask the voters if all seats on the school board shall be declared vacant. The second ballot question shall ask the voters to elect new school board members, provided a majority of voters voted in the affirmative on the first ballot question. The election of new school board members shall comply with the provisions of RSA 671:4-33 and RSA 197:3-10.

(b) Notwithstanding any provision of law to the contrary, no person who was a member of the school board during the 5 years prior to the special election required under this paragraph shall be permitted to be a candidate for the school board.

17 Reference Changes. Amend the following RSA provisions by replacing “equitable” with “adequate”: RSA 21-N:1, II(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); RSA 195:14-a, I; the section heading of RSA 198:42; RSA 198:42, I-II; RSA 198:43.

18 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).

19 Reference Changes; “Adequate” Replaces “Equitable.” Amend the following RSA sections by deleting “equitable” and inserting “adequate” in place thereof: RSA 21-N:1, II(c); RSA 193-E:1, II; RSA 193-E:2; the section heading to RSA 193-E:3; RSA 194-B:3, II(i); RSA 195:14, I(c); RSA 195:14, I(d)(2); RSA 195:14-a, I; and RSA 198:43.

20 Department of Education; Balance Sheet. The DOE-25 report for 2004-2005 shall be the basis for calculating the cost of an adequate education for the fiscal year ending June 30, 2008.

21 Repeal. RSA 198:41, relative to determination of adequate education grants and excess tax, is repealed.

22 Effective Date. This act shall take effect July 1, 2007.

LBAO

07-0007

Revised 03/02/07

HB 904 FISCAL NOTE

AN ACT defining an adequate education and relative to calculating the cost of an adequate education and adequate education grants.

FISCAL IMPACT:

      The Department of Education states this bill may increase state education trust fund expenditures and local revenue by $179,904,287 in FY 2008, $198,832,123 in FY 2009, $193,592,612 in FY 2010, and $215,026,119 in FY 2011. The Department of Education states this bill will increase state general fund expenditures by $215,488 in FY 2008, $162,428 in FY 2009, $169,918 in FY 2010, and $177,668 in FY 2011. There will be no fiscal impact on state and county revenue or county and local expenditures.

METHODOLOGY:

    The Department of Education states this bill calculates the cost of an adequate education individually for each school district once every five years, and uses this amount as the district’s grant from the state. For intervening years, grants are adjusted for enrollment changes and inflation. The Department states it does not currently have all data needed to calculate grants under this bill for FY 2008, and will not have enough time to collect missing data and make calculations before FY 2008. Therefore, the Department made various assumptions to produce an estimate of cost for FY 2008 using available data from DOE-25 forms. The Department states it did not deduct state grants for an adequate education as specified by the proposed RSA 198:40-a, III(a) because deducting a school district’s state grant for an adequate education from its cost to provide an adequate education would result in a grant that is not equal to the cost of an adequate education. The Department also states it does not have expenditure data for specific subjects and did not estimate costs for world languages or other subjects not listed in this bill. The Department’s estimate includes the cost of all regular instruction and “special programs” (primarily special education), and does not include vocational education or “other instruction” (primarily co-curricular activities). The Department’s FY 2008 estimate uses FY 2005 state total expenditures for education and not expenditures by individual districts. The Department assumes that to determine the total cost of this bill to the state it is not necessary to compute regular and special education grants separately. The Department estimated changes in average daily membership in residence (ADM-R), as well as estimated consumer price index increases, to estimate the cost of grants in FY 2009 through FY 2011. To calculate the difference in cost between adequate education grants under this bill and equitable education grants under current law, the Department estimated the cost of equitable education grants in FY 2010 and FY 2011 using estimated changes in ADM-R, local tax assessments, and the consumer price index. All values are net of state education property taxes.

 

FY 2008

FY 2009

FY 2010

FY 2011

ADM-R Change

-

-0.7%

-0.9%

-0.7%

CPI Change

-

3.4%

3.6%

3.6%

Cost of Adequate Education

 

Grants, This Bill

$707,265,374

$726,193,210

$745,565,140

$766,998,647

Cost of Equitable Education

 

Grants, Current Law

$527,361,087

$527,361,087

$551,972,528

$551,972,528

Increase/(Decrease)

$179,904,287

$198,832,123

$193,592,612

$215,026,119

      The Department states it will require two additional permanent staff beginning in FY 2008, as well as consulting services in FY 2008, to administer the requirements of this bill. The Department states an Administrator IV and a Financial Analyst will identify data requirements, collect missing data from previous fiscal years, and develop procedures for calculating aid and auditing in FY 2008. In FY 2009, staff will revise the DOE-25 form and conduct training in school districts. In FY 2010, staff will audit 25% of school districts and conduct additional training. Staff will compute grants again in FY 2011 using FY 2010 data, and will begin a four-year auditing cycle in FY 2012. The Department anticipates consultants will be hired in FY 2008 to assist with aid calculations, at an estimated cost of $50,000. This bill does not establish positions or appropriate general funds. General fund expenditures for additional personnel and consulting services are calculated as follows:

 

FY 2008

FY 2009

FY 2010

FY 2011

Administrator IV

$57,194

$59,826

$62,712

$65,715

Financial Analyst

45,630

47,678

49,842

52,065

Benefits (48.3%)

49,664

51,924

54,364

56,888

Equipment

3,000

3,000

3,000

3,000

Supplies

10,000

-

-

-

Consultants

50,000

-

-

-

Total

$215,488

$162,428

$169,918

$177,668

Links

HB904 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB904 Revision: 12031 Date: Jan. 1, 2008, midnight

Docket