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1 Findings.
I. The general court finds that the cost of the opportunity for an adequate education for all students in a municipality's average daily membership in attendance (ADMA) in a school district rises in proportion to the rise in the proportion of economically disadvantaged students in the municipality's ADMA and that a purpose of this act is to adjust the current procedure for calculating the cost of an adequate education as provided in this act in order to ensure that the state meets its constitutional duty to provide the opportunity for an adequate education to all students.
II. The general court recognizes that certain communities lack the relative wealth and fiscal capacity to fund local education to the extent desired by those communities. For this reason, the general court finds it appropriate to provide money above the cost of the opportunity for an adequate education based upon the fiscal capacity and relative need of certain communities.
2 Cost of an Opportunity for an Adequate Education. Amend RSA 198:40-a, I-II to read as follows:
I. For the biennium beginning July 1, 2015 2017, the annual cost of providing the opportunity for an adequate education as defined in RSA 193-E:2-a shall be as specified in paragraph II. The department shall adjust the rates specified in this paragraph in accordance with RSA 198:40-d.
II.(a) A cost of $3,561.27 $3,636.06 per pupil in the ADMA, plus differentiated aid as follows:
(b)(1) An additional $1,780.63 $454.51 for each pupil in the ADMA who is eligible for a free or reduced price meal if less than 12 percent of the school district's ADMA in the determination year are eligible for the free or reduced price meal program; or
(2) An additional $909.02 for each pupil in the ADMA who is eligible for a free or reduced price meal if at least 12 percent but less than 24 percent of the pupils reported in the school district's ADMA in the determination year are eligible for the free or reduced price meal program; or
(3) An additional $1,818.03 for each pupil in the ADMA who is eligible for a free or reduced price meal if at least 24 percent but less than 36 percent of the pupils reported in the school district's ADMA in the determination year are eligible for the free or reduced price meal program; or
(4) An additional $2,727.05 for each pupil in the ADMA who is eligible for a free or reduced price meal if at least 36 percent but less than 48 percent of the pupils reported in the school district's ADMA in the determination year are eligible for the free or reduced price meal program; or
(5) An additional $3,636.06 for each pupil in the ADMA who is eligible for a free or reduced price meal if at least 48 percent of the pupils reported in the school district's ADMA in the determination year are eligible for the free or reduced price meal program; plus
(c) An additional $697.77 $711.40 for each pupil in the ADMA who is an English language learner; plus
(d) An additional $1,915.86 $1,956.09 for each pupil in the ADMA who is receiving special education services; plus
(e) An additional $697.77 $711.40 for each third grade pupil in the ADMA with a test score below the proficient level on the reading component of the state assessment administered pursuant to RSA 193-C:6, provided the pupil is not eligible to receive differentiated aid pursuant to subparagraphs (b)-(d).
3 New Section; Adequate Education; Fiscal Capacity Disparity Aid. Amend RSA 198 by inserting after section 40-c the following new section:
198:40-cc Fiscal Capacity Disparity Aid.
I. 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:
(a) The department shall calculate the equalized valuation per pupil for each municipality in the state and shall sort the results from lowest to highest excluding municipalities with zero ADMA.
(b) A municipality with an equalized valuation per pupil in the lowest 8 percent, rounded down to the nearest whole number, of municipalities sorted, 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 ADMA.
(c) A municipality with an equalized valuation per pupil in the next lowest 4 percent, rounded down to the nearest whole number, of municipalities sorted, 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 $1,000 multiplied by the municipality's ADMA.
II. Except as otherwise provided in this section, fiscal capacity disparity aid shall be distributed pursuant to RSA 198:42.
III. In this section:
(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 ADMA.
(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.
4 Adequate Education; Determination of Grants. Amend RSA 198:41, IV(d) to read as follows:
(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.
(2) For fiscal year 2018, the department of education shall identify all municipalities in which the fiscal year 2018 total education grant plus any fiscal disparity aid scheduled for receipt by the municipality pursuant to RSA 198:40-cc will be less than the municipality's fiscal year 2017 total education grant including the municipality's fiscal year 2017 stabilization grant, if any. The department shall distribute a stabilization grant for fiscal year 2018 to each of those municipalities equal to 100 percent of the decrease.
(3) For fiscal year 2019, 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 including any fiscal disparity aid scheduled for receipt by the municipality pursuant to RSA 198:40-cc, plus a percentage of the municipality's fiscal year 2018 stabilization grant, if any, distributed to the municipality. The percentage shall be 96 percent for fiscal year 2019, and shall be reduced by 4 percent of the amount of the 2018 stabilization grant for each fiscal year thereafter.
(4) No stabilization grant shall be distributed to any municipality for any fiscal year in which the municipality's education property tax revenue collected pursuant to RSA 76 exceeds the total cost of an adequate education or to any municipality for any fiscal year in which the municipality's ADMA is zero.
5 Effective Date. This act shall take effect July 1, 2017.
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1 Findings.
I. The general court finds that the cost of the opportunity for an adequate education for all students in a municipality's average daily membership in attendance (ADMA) in a school district rises in proportion to the rise in the proportion of economically disadvantaged students in the municipality's ADMA and that a purpose of this act is to adjust the current procedure for calculating the cost of an adequate education as provided in this act in order to ensure that the state meets its constitutional duty to provide the opportunity for an adequate education to all students.
II. The general court recognizes that certain communities lack the relative wealth and fiscal capacity to fund local education to the extent desired by those communities. For this reason, the general court finds it appropriate to provide money above the cost of the opportunity for an adequate education based upon the fiscal capacity and relative need of certain communities.
2 Cost of an Opportunity for an Adequate Education. Amend RSA 198:40-a, I-II to read as follows:
I. For the biennium beginning July 1, 2017, the annual cost of providing the opportunity for an adequate education as defined in RSA 193-E:2-a shall be as specified in paragraph II. The department shall adjust the rates specified in this paragraph in accordance with RSA 198:40-d.
II.(a) A cost of $3,636.06 per pupil in the ADMA, plus differentiated aid as follows:
(b)(1) An additional $454.51 for each pupil in the ADMA who is eligible for a free or reduced price meal if less than 12 percent of the school district's ADMA in the determination year are eligible for the free or reduced price meal program; or
(2) An additional $909.02 for each pupil in the ADMA who is eligible for a free or reduced price meal if at least 12 percent but less than 24 percent of the pupils reported in the school district's ADMA in the determination year are eligible for the free or reduced price meal program; or
(3) An additional $1,818.03 for each pupil in the ADMA who is eligible for a free or reduced price meal if at least 24 percent but less than 36 percent of the pupils reported in the school district's ADMA in the determination year are eligible for the free or reduced price meal program; or
(4) An additional $2,727.05 for each pupil in the ADMA who is eligible for a free or reduced price meal if at least 36 percent but less than 48 percent of the pupils reported in the school district's ADMA in the determination year are eligible for the free or reduced price meal program; or
(5) An additional $3,636.06 for each pupil in the ADMA who is eligible for a free or reduced price meal if at least 48 percent of the pupils reported in the school district's ADMA in the determination year are eligible for the free or reduced price meal program; plus
(c) An additional $711.40 for each pupil in the ADMA who is an English language learner; plus
(d) An additional $1,956.09 for each pupil in the ADMA who is receiving special education services; plus
(e) An additional $711.40 for each third grade pupil in the ADMA with a test score below the proficient level on the reading component of the state assessment administered pursuant to RSA 193-C:6, provided the pupil is not eligible to receive differentiated aid pursuant to subparagraphs (b)-(d).
3 New Section; Adequate Education; Fiscal Capacity Disparity Aid. Amend RSA 198 by inserting after section 40-c the following new section:
198:40-cc Fiscal Capacity Disparity Aid.
I. 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:
(a) The department shall calculate the equalized valuation per pupil for each municipality in the state and shall sort the results from lowest to highest excluding municipalities with zero ADMA.
(b) A municipality with an equalized valuation per pupil in the lowest 8 percent, rounded down to the nearest whole number, of municipalities sorted, 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 ADMA.
(c) A municipality with an equalized valuation per pupil in the next lowest 4 percent, rounded down to the nearest whole number, of municipalities sorted, 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 $1,000 multiplied by the municipality's ADMA.
II. Except as otherwise provided in this section, fiscal capacity disparity aid shall be distributed pursuant to RSA 198:42.
III. In this section:
(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 ADMA.
(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.
4 Adequate Education; Determination of Grants. Amend RSA 198:41, IV(d) to read as follows:
(d)(1) For fiscal year 2017 , 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.
(2) For fiscal year 2018, the department of education shall identify all municipalities in which the fiscal year 2018 total education grant plus any fiscal disparity aid scheduled for receipt by the municipality pursuant to RSA 198:40-cc will be less than the municipality's fiscal year 2017 total education grant including the municipality's fiscal year 2017 stabilization grant, if any. The department shall distribute a stabilization grant for fiscal year 2018 to each of those municipalities equal to 100 percent of the decrease.
(3) For fiscal year 2019, 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 including any fiscal disparity aid scheduled for receipt by the municipality pursuant to RSA 198:40-cc, plus a percentage of the municipality's fiscal year 2018 stabilization grant, if any, distributed to the municipality. The percentage shall be 96 percent for fiscal year 2019, and shall be reduced by 4 percent of the amount of the 2018 stabilization grant for each fiscal year thereafter.
(4) No stabilization grant shall be distributed to any municipality for any fiscal year in which the municipality's education property tax revenue collected pursuant to RSA 76 exceeds the total cost of an adequate education or to any municipality for any fiscal year in which the municipality's ADMA is zero.
5 Effective Date. This act shall take effect July 1, 2017.