Revision: Jan. 6, 2016, midnight
\t \t\tSB 473-FN-A-LOCAL - AS INTRODUCED
2016 SESSION
\t16-2737
\t04/10
SENATE BILL\t473-FN-A-LOCAL
AN ACT\trepealing the cap on adequate education grant payments and making an appropriation therefor.
SPONSORS:\tSen. Watters, Dist 4; Sen. Birdsell, Dist 19; Sen. Fuller Clark, Dist 21; Sen. Sanborn, Dist 9; Sen. Stiles, Dist 24; Sen. Woodburn, Dist 1; Rep. Verschueren, Straf. 13; Rep. P. Schmidt, Straf. 19; Rep. Bates, Rock. 7
COMMITTEE:\tEducation
-----------------------------------------------------------------
ANALYSIS
\tThis bill repeals the restriction on total education grant payments to municipalities and makes an appropriation for the purpose of distributing an additional payment to those municipalities in which the total education grant payment was reduced.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2737
\t04/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trepealing the cap on adequate education grant payments and making an appropriation therefor.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Repeal. The following are repealed:
\t\tI. RSA 198:41, III(b), relative to the total education grant distributed to a municipality.
\t\tII. 2015, 276:140, relative to the prospective repeal of the maximum total education grant distributed to a municipality.
\t2 Applicability. The commissioner of the department of revenue administration and the commissioner of the department of education shall recalculate the adequate education grant payments pursuant to RSA 198:41, I-II for all municipalities for the period beginning July 1, 2015 and ending upon the effective date of this act. Any municipality in which the total education grant payment distributed to the municipality was less than the total education grant payment the municipality would have received but for the provisions of RSA 198:41, III(b) shall receive an additional grant payment equal to the difference. The commissioner of the department of education shall distribute such additional grant payment pursuant to the schedule established in RSA 198:42.
\t3 Appropriation. The sum of $1 for the fiscal year ending June 30, 2016 is hereby appropriated to the department of education for the purpose of making payments to municipalities pursuant to the provisions of section 2 of this act. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
\t4 Effective Date. This act shall take effect upon its passage.
\t\t\t\t\t\t\t\t\t\t\t16-2737
\t\t\t\t\t\t\t\t\t\t\t12/31/15
SB 473-FN-A-LOCAL- FISCAL NOTE
AN ACT\trepealing the cap on adequate education grant payments and making an appropriation therefor.
FISCAL IMPACT:
The Department of Education states this bill, as introduced, will increase state education trust fund expenditures and local revenues by $11,397,333 in FY 2016 and by $3,366,985 in FY 2017. There will be no impact on state and county revenues or county and local expenditures.
This bill appropriates $1 in the fiscal year ending June 30, 2016 from state general fund to the Department of Education for the purpose of this act.
METHODOLOGY:
The Department of Education states this bill repeals the cap on total education grants to municipalities effective for the periods beginning July 1, 2015, which would impact payments in FY 2016 and FY 2017. Under current law, the cap on total grants is as follows:
| FY 2016 | FY 2017 | FY 2018 and Thereafter |
Cap Amount | 108% of FY 2015 Total Grant | 160% of FY 2016 Total Grant | None |
Based on FY 2016 revised data (as of 10/01/15) and FY 2017 preliminary data (as of 11/15/15), the Department of Education estimates the following increase to state education trust fund expenditures and local revenues resulting from this bill:
FY 2016 | |||
| Current Law | Proposed | Increase |
Adequate Education Grants | $570,043,499 | $581,440,832 | $11,397,333 |
Statewide Education Property Tax | $363,137,923 | $363,137,923 | $0 |
Total | $933,181,422 | $944,578,755 | $11,397,333 |
FY 2017 | |||
| Current Law | Proposed | Increase |
Adequate Education Grants | $563,924,066 | $567,291,051 | $3,366,985 |
Statewide Education Property Tax | $363,431,572 | $363,431,572 | $0 |
Total | $927,355,638 | $930,722,623 | $3,366,985 |