HB 1630-FN-LOCAL - AS AMENDED BY THE HOUSE
10Feb2016... 0376h
2016 SESSION
\t16-2481
\t04/03
HOUSE BILL\t1630-FN-LOCAL
AN ACT\trelative to calculating the base cost of an adequate education.
SPONSORS:\tRep. Ladd, Graf. 4; Rep. Myler, Merr. 10
COMMITTEE:\tEducation
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AMENDED ANALYSIS
\tThis bill increases the amount of per pupil adequacy aid, increases the amount of aid to certain third grade pupils, and provides fiscal capacity disparity aid to certain school districts.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10Feb2016... 0376h\t16-2481
\t04/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to calculating the base cost of an adequate education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Cost of an Opportunity for an Adequate Education. Amend RSA 198:40-a, I to read as follows:
\t\tI. Beginning July 1, 2009, and for every biennium thereafter, the annual cost of providing the opportunity for an adequate education as defined in RSA 193-E:2-a shall be [$3,450] $3,458 per pupil attending a public school, plus any applicable differentiated aid for which a pupil is eligible. Differentiated aid shall be in the amount of $1,725 for each pupil in the public school's ADMA in the determination year who is in kindergarten through grade 12 and who is eligible for the federal free and reduced-price meal program.
\t2 School Money; Cost of an Opportunity for an Adequate Education. Amend RSA 198:40-a, II-a to read as follows:
\t\tII-a. An additional [$675] $697 for each third grade pupil in the public school's ADMA in the determination year who has not tested at the proficient level or above in the reading [component] and mathematics components of the state assessment and who is not eligible to receive special education, English as a second language, or free or reduced-price meal program funds in the determination year.
\t3 New Section; School Money; Fiscal Capacity Disparity Aid. Amend RSA 198 by inserting after section 40-c the following new section:
\t198:40-cc Fiscal Capacity Disparity Aid.
\t\tI. In addition to aid for the cost of the opportunity for an adequate education provided under RSA 198:40-a, 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 charter schools approved under RSA 194-B:3-a as follows:
\t\t\t(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.
\t\t\t(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 attendance.
\t\t\t(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 $1,200 multiplied by the municipality’s average daily membership in attendance shall be distributed pursuant to RSA 198:42.
\t\tII. Except as otherwise provided in this section, fiscal capacity disparity aid shall be distributed pursuant to RSA 198:42.
\t\tIII. In this section:
\t\t\t(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 attendance.
\t\t\t(b) “Median family income” means the most recent census data published for New Hampshire counties and municipalities by the United States Department of Commerce, Census Bureau, as of October 1 preceding the beginning of the biennium for which aid is to be determined.
\t4 School Money; Determination of Adequate Education Grants. Amend RSA 198:41, IV(d) to read as follows:
\t\t\t(d)(1) For fiscal year 2017 and each fiscal year thereafter, the department of education shall distribute a total education grant to each municipality in an amount equal to the total education grant for the fiscal year in which the grant is calculated plus a percentage of the municipality's fiscal year 2012 stabilization grant, if any, distributed to the municipality; the percentage shall be 96 percent for fiscal year 2017, and shall be reduced by 4 percent of the amount of the 2012 education grant for each fiscal year thereafter.
\t\t\t\t(2) For fiscal year 2018 and each fiscal year thereafter, no municipality which is eligible to receive fiscal capacity disparity aid pursuant to RSA 198:40-cc shall receive a stabilization grant which is less than the amount of the municipality's 2018 stabilization grant, less 4 percent.
\t5 Effective Date. This act shall take effect July 1, 2017.
\t\t\t\t\t\t\t\t\t\t\t16-2481
\t\t\t\t\t\t\t\t\t\t\tAmended 3/1/16
HB 1630-FN-LOCAL- FISCAL NOTE
AN ACT\trelative to calculating the base cost of an adequate education.
FISCAL IMPACT:
The Department of Education states this bill, as amended by the House (Amendment #2016-0376h), will increase state education trust fund expenditures and local revenues by an indeterminable amount in FY 2018 and each year thereafter. There will be no impact on state and county revenues or county and local expenditures.
METHODOLOGY:
The Department of Education states this bill makes the following changes to the adequacy aid formula, effective in FY 2018:
The Department states it is unable to provide an estimate of this bill’s impact on state education trust fund expenditures and local revenues, specifically due to not being able to predict pupil data in FY 2018. However, for informational purposes only, the impact of this bill’s provisions above using FY 2017 preliminary data is as follows:
Using FY 2017 Preliminary Data | |||
| FY 2018 - Current Law - | FY 2018 - Proposed - | Difference |
Adequate Education Grants | $575,651,516 | $583,906,215 | $8,254,699 |
Statewide Education Property Tax | $363,431,566 | $363,431,566 | $0 |
Total Cost | $939,083,082 | $947,337,781 | $8,254,699 |
It should be noted that while the net difference statewide is an increase of $8,254,699, the grant amount per municipality will vary depending on many factors (i.e., student enrollment, property valuations, etc..). The calculation above included grants to municipalities ranging from no change to an increase of $4,672,092.