Bill Details - HB678 (2019)

HB 678-FN - AS INTRODUCED

 

 

2019 SESSION

19-0726

06/04

 

HOUSE BILL 678-FN

 

AN ACT relative to state funding of the cost of an opportunity for an adequate education for all New Hampshire students.

 

SPONSORS: Rep. Porter, Hills. 1; Rep. W. Pearson, Ches. 16; Rep. Chretien, Hills. 42; Rep. Bosman, Hills. 38

 

COMMITTEE: Education

 

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ANALYSIS

 

This bill raises the cost per pupil of providing the opportunity for an adequate education for the purpose of determining state funding.  This bill also adds differential aid for transportation costs.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0726

06/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to state funding of the cost of an opportunity for an adequate education for all New Hampshire students.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Statement of Findings and Purpose.

I.  The general court hereby finds that:

(a)  In Claremont School District v. Governor, 138 N.H. 183, 635 A.2d 1375 (1993) (Claremont I), the New Hampshire Supreme Court interpreted Part II, Article 83 of the New Hampshire Constitution to "impose a duty on the State to provide a constitutionally adequate education for every educable child in the public schools in New Hampshire and to guarantee adequate funding." Id. at 184, 635 A.2d at 1376.

(b)  The department of education has determined the average per pupil costs of all school expenditures in the 2016-2017 school year to be $18,216.28.

(c)  The current state adequacy grants provided to school districts do not provide adequate funding to provide a constitutionally adequate education for every educable child.  It fails to include all state mandated educational requirements and erroneously distributes the cost of teachers on the basis of maximum class sizes instead of student teacher ratios.

(d)  The department of education has determined the average student to teacher ratio to be 12.6 to 1.

(e)  In addition to salaries, teachers and other school staff are provided benefits including health insurance, dental insurance, life insurance, long term care insurance, FICA (7.65 percent), and retirement contributions.

(f)  The base cost of providing a constitutionally adequate education based on the real costs of teachers, staff, and educational supplies, not including transportation, is $9,929.00.

(g)  Students are constitutionally entitled to funding for an adequate education regardless of where they reside.

(h)  It is more expensive to provide an adequate education in the rural parts of the state due, in part, to the increased transportation costs.

(i)  The provision of transportation services is both a statutorily and constitutionally mandated part of providing an adequate education.

(j)  The state is obligated to provide adequate funding to provide a constitutionally adequate education.

II.  Therefore, the general court hereby finds it necessary to amend the base educational adequacy grant to reflect the actual costs of teachers, staff, and educational supplies on a per pupil basis as well as to have a separate provision for transportation services.

2  Cost of an Opportunity for an Adequate Education.  Amend RSA 198:40-a, II(a) to read as follows:

II.(a)  A cost of [$3,561.27] $9,929 per pupil in the ADMA, plus differentiated aid as follows:

3  New Subparagraph; Cost of an Opportunity for an Adequate Education.  Amend RSA 198:40-a, II by inserting after subparagraph (e) the following new subparagraph:

(f)  An additional amount equal to the total transportation costs for the previous fiscal year, as reported under RSA 198:4-d, divided by the school district's ADMA.

4  Effective Date.  This act shall take effect upon its passage.

 

LBAO

19-0726

1/15/19

 

HB 678-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to state funding of the cost of an opportunity for an adequate education for all New Hampshire students.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

$1,129,805,895

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [    ] General            [ X ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$1,129,805,895

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill makes changes to the adequate education funding formula by increasing the statutory amount for base aid per pupil from $3,561.27 to $9,929.00 and establishing a new differentiated aid category to provide full-funding of a district’s transportation costs.  For the purpose of this fiscal note, this amount is estimated to be $802.94 per pupil:

 

FY 2018 Total Transportation Expense for All Districts

Total Estimated Pupils (ADM)

Average Transportation Expense Per Pupil

$133,369,528.45

166,101.48

$802.94

 

Current Law / Proposed Per Pupil Adequacy Rates (Consumer Price Index Adjusted)

 

 

FY 2020

Current Law

Proposed

Base Adequacy

$3,708.78

$9,929.00

Differentiated Aid

 

 

     Free and Reduced Lunch

$1,854.38

$1,854.38

     Special Education

$1,995.21

$1,995.21

     English Language Learner

$725.63

$725.63

     3rd Grade Reading

$725.63

$725.63

     Transportation

$0.00

$802.94

 

Based on these changes and using FY 2020 premiminary data, this bill will increase state education trust fund expenditures and local revenues by $1,129,805,895 in FY 2020.  Estimates for FY 2021 and beyond are not available, however would be expected to be in excess of $1 billion per year.

 

 

Based on FY 2020 Preliminary Data

Current Law

Proposed

Increase / (Decrease)

Total Estimated Grant

$551,561,257

$1,681,367,152

$1,129,805,895

Statewide Education Property Tax

$363,246,023

$363,246,023

$0

Total Aid

$914,807,280

$2,044,613,175

$1,129,805,895

 

AGENCIES CONTACTED:

Department of Education

 

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and referred to Education HJ 3 P. 25
Jan. 29, 2019 Public Hearing: 01/29/2019 01:00 pm LOB 210-211
Feb. 5, 2019 Subcommittee Work Session: 02/05/2019 01:00 pm LOB 207
Feb. 7, 2019 Subcommittee Work Session: 02/07/2019 10:00 am LOB 207
Feb. 13, 2019 Subcommittee Work Session: 02/13/2019 01:00 pm LOB 207
Feb. 19, 2019 Executive Session: 02/19/2019 10:00 am LOB 207
Retained in Committee

Action Dates

Date Body Type
Jan. 29, 2019 House Hearing
Feb. 19, 2019 House Exec Session

Bill Text Revisions

HB678 Revision: 4958 Date: Jan. 16, 2019, 12:41 p.m.