Revision: Dec. 24, 2015, midnight
\t \t\tHB 1630-FN-LOCAL - AS INTRODUCED
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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ANALYSIS
\tThis bill increases the amount of per pupil adequacy aid, increases the amount of aid to certain third grade pupils, provides aid for exceptional 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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\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] $4,038 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 Paragraph; School Money; Cost of an Opportunity for an Adequate Education. Amend RSA 198:40-a by inserting after paragraph II-a the following new paragraph:
\t\tII-b. An additional $697 for each pupil reported in the public school's ADMA for grades 2-8 who is participating in a school district's exceptional pupil program.
\t4 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 $1,250 multiplied by the municipality’s average daily membership in attendance shall be distributed pursuant to RSA 198:42.
\t\t\t(d) A charter school approved under RSA 194-B:3-a shall receive $2,000 per pupil multiplied by the number of pupils enrolled. The calculation of charter school enrollment and aid distribution shall be pursuant to RSA 194-B:11.
\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.
\t5 Repeal. RSA 198:41, IV, relative to stabilization grants, is repealed.
\t6 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\t12/18/15
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 introduced, will have an indeterminable impact on state education trust fund expenditures and local revenues 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 (assumed 9% of grade 2-8 pupils would be eligible for exceptional pupil program) is as follows:
Using FY 2017 Preliminary Data | |||
| FY 2018 - Current Law - | FY 2018 - Proposed - | Difference |
Adequate Education Grants | $574,956,759 | $563,024,245 | ($11,932,514) |
Statewide Education Property Tax | $363,431,572 | $363,431,572 | $0 |
Total Cost | $938,388,331 | $926,455,817 | ($11,932,514) |
It should be noted that while the net difference statewide is a decrease of $11,932,514, the amount per municipality will vary and could be an increase or decrease in grant amount depending on many factors (i.e., student enrollment, property valuations, etc..). The calculation above included grants to municipalities ranging from a decrease of $11,027,769 to an increase of $5,733,340.
In addition to an impact on adequate education grants to municipalities for traditional public schools, this bill will also impact aid to charter public schools. The amount of total potential impact is indeterminable for the following reasons: