Bill Text - SB486 (2010)

Relative to the school building aid program.


Revision: Jan. 26, 2010, midnight

SB 486-FN – AS INTRODUCED

2010 SESSION

10-2768

04/03

SENATE BILL 486-FN

AN ACT relative to the school building aid program.

SPONSORS: Sen. Kelly, Dist 10; Sen. Janeway, Dist 7; Sen. D'Allesandro, Dist 20

COMMITTEE: Education

ANALYSIS

This bill provides that no school building aid or alternative school building aid grants shall be made to school districts for projects approved on or after June 30, 2010 until June 30, 2012.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10-2768

04/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT relative to the school building aid program.

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

1 School Building Aid; Alternative School Building Aid. Notwithstanding RSA 198:15-a through RSA 198:15-hh and RSA 198:15-u through RSA 198:15-w, and notwithstanding the school building aid funding provisions of 2009, 144:11, the commissioner of the department of education shall issue no school building aid or alternative school building aid for any project approved on or after June 30, 2010 until June 30, 2012.

2 Effective Date. This act shall take effect June 30, 2010.

LBAO

10-2768

Revised 12/28/09

SB 486-FN - FISCAL NOTE

AN ACT relative to the school building aid program.

FISCAL IMPACT:

      The Department of Education states this bill will decrease local expenditures in FY 2011 and FY 2012 and have an indeterminable fiscal impact on local expenditures in FY 2013 and FY 2014. The Department states this bill will decrease state general fund expenditures and local revenue in FY 2013 and FY 2014. There will be no fiscal impact on state and county revenue or county expenditures.

METHODOLOGY:

    The Department of Education states this bill suspends the school building aid program in FY 2011 and FY 2012. The Department made the following assumptions when analyzing the fiscal impact of this bill:

      • The school building aid program will be funded with state general funds in FY 2012 and each fiscal year thereafter.

      • “Any project approved” means approved by the legislative body of a school district.

      • School districts will not proceed with school building projects in FY 2011 and FY 2012 due to the suspension of building aid.

      The Department states the fiscal impact of this bill cannot be determined because it cannot predict what projects will be approved by school districts between June 30, 2010 and June 30, 2012, under current law or under this bill. In addition, the Department cannot calculate the costs of those projects. The Department states typically when a school district approves a building project in a certain fiscal year, the Department begins providing building aid two fiscal years later. Therefore, it is assumed this bill will reduce local expenditures for school building projects during FY 2011 and FY 2012, followed by a reduction in state general fund expenditures and local revenue in FY 2013 and FY 2014 because no building aid payments will be made in those years for projects that would have been approved in FY 2011 and FY 2012 under current law. The Department states local expenditures in FY 2013 and FY 2014 may decrease due to not proceeding with building projects in FY 2011 and FY 2012, or may increase in FY 2013 and FY 2014 due to a potential rush of projects approved after June 30, 2012 and the immediate costs associated with such projects (e.g., planning and design).