HB533 (2011) Detail

Establishing a cap on the amount of school building aid grants distributed in each fiscal year.


HB 533-FN-LOCAL – AS INTRODUCED

2011 SESSION

11-0680

04/09

HOUSE BILL 533-FN-LOCAL

AN ACT establishing a cap on the amount of school building aid grants distributed in each fiscal year.

SPONSORS: Rep. Ladd, Graf 5; Rep. Boehm, Hills 27; Rep. Jasper, Hills 27; Rep. Fleck, Carr 5

COMMITTEE: Special Committee on Education Funding Reform

ANALYSIS

This bill establishes a limit on the amount of school building aid grants that may be approved in a fiscal year.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11-0680

04/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT establishing a cap on the amount of school building aid grants distributed in each fiscal year.

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

1 New Paragraph; School Building Aid; Amount of Annual Grant. Amend RSA 198:15-a by inserting after paragraph II the following new paragraph:

III.(a) School building aid grants for construction or renovation projects approved by the department of education pursuant to this subdivision or RSA 198:15-u through RSA 198:15-w, shall not exceed $50,000,000 for the fiscal year ending June 30, 2012, and shall not exceed $50,000,000 for the fiscal year ending June 30, 2013.

(b) School building aid grants for construction or renovation projects approved by the department of education pursuant to this subdivision or RSA 198:15-u through RSA 198:15-w, shall not exceed $50,000,000 for the fiscal year ending June 30, 2014, and shall not exceed $50,000,000 for each fiscal year thereafter, unless a greater amount is approved by an act of the legislature.

(c) School building aid grants approved pursuant to this subdivision or RSA 198:15-u through RSA 198:15-w, shall be funded from appropriations in the state operating budget and no state bonds shall be authorized or issued for the purpose of funding such school building aid grants.

2 Effective Date. This act shall take effect July 1, 2011.

LBAO

11-0680 01/14/11

HB 533-FN-LOCAL - FISCAL NOTE

AN ACT establishing a cap on the amount of school building aid grants distributed in each fiscal year.

FISCAL IMPACT:

      The Department of Education states this bill will reduce state expenditures and local revenue by $311,952 in FY 2012 and by an indeterminable amount in FY 2014 and FY 2015. This bill will have no impact on state expenditures or local revenues in FY 2013. This bill will have no fiscal impact on state and county revenues or county and local expenditures.

METHODOLOGY:

    This bill establishes a limit on the amount of school building aid grants that may be approved in a fiscal year. The Department of Education states the current moratorium on school building aid for new projects will remain in effect until June 30, 2011 which will result in no additional school building aid grants in FY 2012 or FY 2013 beyond what has already been approved. The Department notes the current estimates for eligible grants is $50,311,952 in FY 2012 and $48,015,228 in FY 2013. Consequently, the proposed legislation’s limit of $50,000,000 per year would result in a decrease in state expenditures and local revenue of $311,952 in FY 2012 ($50,311,952 - $50,000,000). The Department also notes the estimate for FY 2013 is less than the limit of $50,000,000 and therefore there would be no fiscal impact on state expenditures and local revenue in FY 2013.

    The Department further states it is likely that eligible amounts for FY 2014 and FY 2015 will exceed the $50,000,000 threshold established in the proposed legislation. The Department notes historically, eligible building aid has increased approximately $2,500,000 per year. The Department states to the extent that eligible amounts do exceed the threshold, state expenditures and local revenues will be decreased.