HB 327-FN-LOCAL – AS INTRODUCED
2009 SESSION
04/01
HOUSE BILL 327-FN-LOCAL
AN ACT eliminating median family income as a factor in calculating fiscal capacity disparity aid.
SPONSORS: Rep. Sapareto, Rock 5
This bill removes median family income as a factor in calculating fiscal capacity disparity 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0679
04/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT eliminating median family income as a factor in calculating fiscal capacity disparity aid.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 State Aid to Education; Fiscal Capacity Disparity Aid. Amend RSA 198:40-c to read as follows:
198:40-c Fiscal Capacity Disparity Aid.
I. In addition to aid for the cost of the opportunity for an adequate education provided under RSA 198:40-b, each biennium the department shall calculate fiscal capacity disparity aid and provide that amount of aid in each year of the biennium to a municipality’s school districts and to chartered public schools approved under RSA 194-B:3-a as follows:
(a) The department shall calculate the equalized valuation per pupil for each municipality in the state and shall sort the results into quartiles based on equalized valuation per pupil and shall divide all quartiles in half. If there are an uneven number of municipalities in a quartile or half quartile, the department shall make the lower quartile or half quartile the one with fewer municipalities.
(b) A municipality with an equalized valuation per pupil in the lower half of the lowest quartile [and which has a median family income which is less than the state average median family income] shall receive fiscal capacity disparity aid in the amount of $2,000 multiplied by the municipality’s average daily membership in residence.
(c) A municipality with an equalized valuation per pupil in the upper half of the lowest quartile [which has a median family income which is less than the state average median family income] shall receive fiscal capacity disparity aid in the amount of $1,250 multiplied by the municipality’s average daily membership in residence shall be distributed pursuant to RSA 198:42.
(d) A chartered public school approved under RSA 194-B:3-a shall receive $2,000 per pupil multiplied by the number of pupils enrolled. The calculation of chartered public school enrollment and aid distribution shall be pursuant to RSA 194-B:11, I(c).
II. Except as otherwise provided in this section, aid shall be distributed pursuant to RSA 198:42.
III. In this section[:
(a)], “equalized valuation per pupil” means a municipality’s equalized valuation, including properties subject to taxation under RSA 82 and RSA 83-F, as determined by the department of revenue administration, that was the basis for the local tax assessment in the determination year, divided by the school district’s kindergarten through grade 12 average daily membership in residence, as defined in RSA 189:1-d for the determination year, provided that no kindergarten pupil shall count as more than 1/2 day attendance per calendar day.
[(b) “Median family income” means the most recent census data published for New Hampshire counties and municipalities by the United States Census Bureau, United States Department of Commerce, as of October 1 preceding the beginning of the biennium for which aid is to be determined.]
2 Effective Date. This act shall take effect July 1, 2009 at 12:02 a.m.
LBAO
09-0679
01/07/09
HB 327-FN-LOCAL - FISCAL NOTE
AN ACT eliminating median family income as a factor in calculating fiscal capacity disparity aid.
FISCAL IMPACT:
The Department of Education states this bill will increase state education trust fund expenditures and local revenue by $13,116,423 in FY 2010 and FY 2011 and $42,393,649 in FY 2012 and FY 2013. There will be no fiscal impact on state and county revenue or county and local expenditures.
METHODOLOGY:
The Department of Education states this bill removes median family income as a factor in calculating fiscal capacity disparity aid. The Department used FY 2007 student information to calculate FY 2010 and FY 2011 estimates. When estimating fiscal capacity disparity aid in FY 2012 and FY 2013, the Department assumed average daily membership will decrease by 1% per year, and equalized valuations and equalized valuation per pupil will not change. The Department states this bill will increase the calculated cost of fiscal capacity disparity aid under RSA 198:40-c, I in FY 2010 and FY 2011 from $47,893,278 under current law to $91,152,103, an increase of $43,258,825. However, RSA 198:41, III limits total education grants in FY 2010 and FY 2011 to a 15% increase over the FY 2009 amount. After applying RSA 198:41, III, the Department determined this bill will increase state education trust fund expenditures and local revenue by $13,116,423 in FY 2010 and FY 2011. The Department determined this bill will increase the estimated cost of fiscal capacity disparity aid in FY 2012 and FY 2013 from $46,935,414 under current law to $89,329,063, an increase of $42,393,649. There is no limit to the increase in total education grant in FY 2012 and FY 2013; therefore, the Department estimated this bill will increase state education trust fund expenditures and local revenue by $42,393,649 in FY 2012 and FY 2013.
This bill does not contain an appropriation; however, RSA 198:42, II provides that the amount necessary to fund adequate education grants is appropriated from the education trust fund to the Department of Education.