HB 525-FN - AS AMENDED BY THE HOUSE
3Jan2018... 2526h
2017 SESSION
17-0725
04/03
HOUSE BILL 525-FN
AN ACT relative to stabilization grants for education.
SPONSORS: Rep. Horn, Merr. 2; Rep. Gauthier, Sull. 3; Rep. Testerman, Merr. 2; Rep. Chirichiello, Rock. 6; Sen. Woodburn, Dist 1
COMMITTEE: Education
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This bill removes the annual 4 percent reduction in stabilization grants made to certain municipalities and requires 100 percent of the stabilization grant to be distributed to a municipality in fiscal years 2020 and 2021.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
3Jan2018... 2526h 17-0725
04/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT relative to stabilization grants for education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Determination of Adequate Education Grants. Amend RSA 198:41, IV(d) to read as follows:
(d) 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] 100 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] 2020 and fiscal year 2021. 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.
2 Effective Date. This act shall take effect 60 days after its passage.
17-0725
Amended 1/11/18
HB 525-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2017-2526h)
AN ACT relative to stabilization grants for education.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | $25,144,015 | $31,430,020 | Indeterminable |
Funding Source: | [ ] General [ X ] Education [ ] Highway [ ] Other | |||
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LOCAL: |
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Revenue | Indeterminable | $25,144,015 | $31,430,020 | Indeterminable |
Expenditures | $0 | $0 | $0 | $0 |
METHODOLOGY:
This bill removes the annual four percent reduction to the stabilization grant portion of the total education grant to municipalities. Under current law, beginning in FY 2017, stabilization grants are to be reduced by four percent annually for 25 years. Municipalities that raise more statewide education property tax (SWEPT) revenue than its calculated cost of an adequate education, or have zero students, do not receive a stabilization grant for that year. This bill appears to have a mechanical defect in that it defines how the stabilization grant amount shall be calculated for only FY 2020 and FY 2021 (100 percent). It is not clear how stabilization grants would be calculated for FY 2019 or FY 2022 and beyond as it is not defined by this bill. Below is a summary of the impact of this bill:
| FY 2020 | FY 2021 |
Estimated Stabilization Grant | $132,006,076 | $125,720,071 |
Estimated Stabilization Grant | $157,150,091 | $157,150,091 |
Increase to State Education Trust Fund Expenditures and Local Revenue | $25,144,015 | $31,430,020 |
This bill’s effective date is 60 days after passage, therefore it is assumed there would be no impact on FY 2017 or FY 2018 payments.
AGENCIES CONTACTED:
Department of Education
| Date | Body | Type |
|---|---|---|
| Jan. 24, 2017 | House | Hearing |
| Feb. 7, 2017 | House | Exec Session |
| Nov. 8, 2017 | House | Exec Session |
| Nov. 14, 2017 | House | Exec Session |
| Jan. 3, 2018 | House | Floor Vote |
| Jan. 11, 2018 | House | Hearing |
| Feb. 21, 2018 | House | Exec Session |
| House | Floor Vote | |
| March 6, 2018 | House | Floor Vote |
March 6, 2018: Inexpedient to Legislate: MA VV 03/06/2018 HJ 6 P. 42
: Committee Report: Inexpedient to Legislate (Vote 24-0; CC)
March 6, 2018: Committee Report: Inexpedient to Legislate for 03/06/2018 (Vote 24-0; CC) HC 9 P. 24
Feb. 21, 2018: Executive Session: 02/21/2018 10:00 AM LOB 210-211
Jan. 24, 2018: ==CANCELLED== Division II Work Session: 01/24/2018 10:00 AM LOB 209
Jan. 18, 2018: Division II Work Session: 01/18/2018 10:00 AM LOB 209
Jan. 11, 2018: Public Hearing: 01/11/2018 11:15 AM LOB 210-211
Jan. 3, 2018: Referred to Finance 01/03/2018 HJ 1 P. 58
Jan. 3, 2018: Ought to Pass with Amendment 2526h: MA RC 290-58 01/03/2018 HJ 1 P. 56
Jan. 3, 2018: Amendment # 2017-2526h: AA VV 01/03/2018 HJ 1 P. 55
Jan. 3, 2018: Committee Report: Ought to Pass with Amendment # 2017-2526h for 01/03/2018 (Vote 19-0; RC)
Nov. 14, 2017: ==CONTINUED== Executive Session: 11/14/2017 10:00 AM LOB 206-208
Nov. 8, 2017: ==RECESSED== Executive Session: 11/08/2017 09:30 AM LOB 207
: Retained in Committee
Feb. 7, 2017: Executive Session: 02/07/2017 01:00 PM LOB 207
Jan. 24, 2017: Public Hearing: 01/24/2017 11:15 AM LOB 207
Jan. 5, 2017: Introduced 01/05/2017 and referred to Education HJ 3 P. 17