Revision: May 6, 2010, midnight
HB 1495 – VERSION ADOPTED BY BOTH BODIES
10Feb2010… 0146h
24Mar2010… 0910h
04/28/10 1352s
2010 SESSION
04/03
HOUSE BILL 1495
AN ACT relative to approval of chartered public schools from July 1, 2009 through June 30, 2011 and relative to the renewal term for a chartered public school.
This bill removes the prohibition on approval of new chartered public schools between July 1, 2009 and June 30, 2011 and authorizes the state board of education to issue approval of chartered public schools within that same time period. The bill also changes the renewal term for a chartered public school from 7 years to 5 years.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10Feb2010… 0146h
24Mar2010… 0910h
04/28/10 1352s
10-2522
04/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to approval of chartered public schools from July 1, 2009 through June 30, 2011 and relative to the renewal term for a chartered public school.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Chartered Public Schools. Amend 2009, 144:153 to read as follows:
144:153 Chartered Public Schools. [No new chartered public schools shall be approved by] The state board of education may issue approval of a chartered public school [under] in accordance with the provisions of RSA 194-B:3-a between July 1, 2009 and June 30, 2011.
2 Chartered Public School; Establishment. RSA 194-B:3, X is repealed and reenacted to read as follows:
X. A school's charter may be renewed in the same manner that a new chartered public school is formed, except that a school's renewal term shall be for a period of 5 years.
3 Effective Date. This act shall take effect January 1, 2011.
LBAO
10-2522
Amended 03/01/10
HB 1495 FISCAL NOTE
AN ACT relative to approval of chartered public schools from July 1, 2009 through June 30, 2011 and relative to the renewal term for a chartered public school.
FISCAL IMPACT:
The Department of Education states this bill, as amended by the House (Amendment #2010-0146h), may increase state education trust fund expenditures by $436,000 in FY 2011, $554,000 in FY 2012, $637,100 in FY 2013, and $409,300 in FY 2014. The Department of Education states this bill may decrease local revenue by $283,200 in FY 2014. There will be no fiscal impact on state and county revenue or county and local expenditures.
METHODOLOGY:
The Department of Education states this bill, as amended by the House, amends the language in Ch. 144:153, Laws of 2009 to effectively remove the moratorium on the State Board of Education’s authority during FY 2010 and FY 2011 to approve new chartered public schools under the provisions of RSA 194-B:3-a. The Department states it is unlikely that if this bill becomes law the Board would approve any new chartered public schools that would be operational during FY 2010. The Department estimates three new Board-approved chartered public schools would be established before the beginning of the 2010/2011 school year (FY 2011), with estimated enrollment of 80 students in FY 2011, 100 students in FY 2012, 115 students in FY 2013, and 125 students in FY 2014. The Department states the enrollment estimates are based on the first year of the pilot program when 81 students enrolled at three new chartered public schools.
RSA 198-B:11, I, provides that chartered public schools authorized by the state board of education pursuant to RSA 194-B:3-a receive tuition payments from the Department pursuant to RSA 198:40-a (cost of an opportunity for an adequate education) and RSA 198:40-c (fiscal capacity disparity aid). For the FY 2010/FY 2011 biennium, the base per pupil tuition under RSA 198:40-a, I is $3,450. Chartered public schools receive additional payment for students eligible for a free or reduced-price meal, English language learners, and special education students. The per pupil amounts in RSA 198:40-a are adjusted in future biennium based on a 3-year average of a specific consumer price index pursuant to RSA 198:40-d, which will be a 2.6% increase for the FY 2012/FY 2013 biennium. Therefore, the base per pupil amount for the FY 2012/FY 2013 biennium will be $3,540. All chartered public schools receive an additional $2,000 per pupil for fiscal capacity disparity aid; this per pupil amount is not adjusted in future biennium. The source of funds for these payments is the education trust fund (see RSA 194-B:11, I(d) and RSA 198:42, IV).
Therefore, state education trust fund expenditures will increase in FY 2011 by $5,450 for each additional student attending a chartered public school ($3,450 + $2,000), and will increase in FY 2012, FY 2013, and FY 2014 by $5,540 for each additional student attending a chartered public school ($3,540 + $2,000), not including additional payments for students eligible for a free or reduced-price meal, English language learners, and special education students. Total annual increases in state education trust fund expenditures for charter school tuition resulting from this bill are estimated as follows:
FY 2011
80 chartered public school students x $5,450 = $436,000
FY 2012
100 chartered public school students x $5,540 = $554,000
FY 2013
115 chartered public school students x $5,540 = $637,100
FY 2014
125 chartered public school students x $5,540 = $692,500
The students leaving schools operated by school districts to attend chartered public schools beginning in FY 2011 will impact the calculation of the cost of an opportunity for an adequate education for school districts beginning in FY 2014. FY 2011 enrollment data, which will be used to calculate FY 2014 education aid to school districts, will reflect 80 fewer students attending public schools operated by school districts. Therefore, local revenue from the state for education aid will decrease by $283,200 (80 students x $3,540) in FY 2014. The Department notes that because it is not possible to determine the specific school districts of residence of students attending new chartered public schools, this estimate does not include fiscal capacity disparity aid and additional payment for students eligible for a free or reduced-price meal, English language learners, and special education students. Since state education trust fund expenditures in FY 2014 are estimated to increase for charter school aid and decrease for aid to school districts, the net increase is estimated to be $409,300 ($692,500 - $283,200).
This bill does not contain an appropriation; however, pursuant to RSA 198:42, IV, the amount necessary to fund chartered public school tuition payments under RSA 194-B:11, I is appropriated to the Department from the education trust fund.