HB 711-FN-LOCAL - AS INTRODUCED
2019 SESSION
19-0280
06/04
HOUSE BILL 711-FN-LOCAL
AN ACT relative to funding an adequate education.
SPONSORS: Rep. Fellows, Graf. 8; Rep. Porter, Hills. 1; Rep. Eisner, Rock. 6; Rep. Ellison, Merr. 27
COMMITTEE: Education
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ANALYSIS
This bill:
I. Deletes stabilization grants.
II. Increases the base adequacy aid per student.
III. Clarifies the consumer price index adjustment to the cost of an adequate education.
IV. Revises charter school provisions relative to school aid rates.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19-0280
06/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to funding an adequate education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Cost of an Opportunity for an Adequate Education. RSA 198:40-a, I and II are repealed and reenacted to read as follows:
I. For the biennium beginning July 1, 2021, 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) The base cost per pupil shall be calculated as follows:
(1) $7,000 per pupil in the municipality's ADMA if the municipality's population is less than 2,000; or
(2) $6,300 per pupil in the municipality's ADMA if the municipality's population is at least 2,000 but less than 4,000; or
(3) $5,600 per pupil in the municipality's ADMA if the municipality's population is at least 4,000 but less than 7,000; or
(4) $4,900 per pupil in the municipality's ADMA if the municipality's population is 7,000 or more, plus differentiated aid under subparagraph (b).
(b) Differentiated aid shall be calculated as follows:
(1) An additional $1,891 for each pupil in the ADMA who is eligible for a free or reduced price meal; plus
(2) An additional $741 for each pupil in the ADMA who is an English language learner; plus
(3) An additional $2,035 for each pupil in the ADMA who is receiving special education services.
2 Cost of an Opportunity for an Adequate Education; Consumer Price Index Adjustment. Amend RSA 198:40-d to read as follows:
198:40-d Consumer Price Index Adjustment. Beginning July 1, 2017 and every biennium thereafter, the department of education shall adjust the cost of an adequate education under RSA 198:40-a based on the average change in the Consumer Price Index for All Urban Consumers, Northeast Region, using the "services less medical care services" special aggregate index, as published by the Bureau of Labor Statistics, United States Department of Labor. The adjustment shall be twice the average annual change [shall be] calculated using the 3 calendar years ending 18 months before the beginning of the biennium for which the calculation is to be performed.
3 Determination of Education Grants; Stabilization Grants Deleted. 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 accordance with paragraphs I and II [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. 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].
4 Funding for Chartered Public Schools; Reference Change. Amend RSA 194-B:11, I(b) to read as follows:
(b)(1)(A) Except as provided in subparagraph (2), for a chartered public school authorized by the state board of education pursuant to RSA 194-B:3-a, the state shall pay tuition pursuant to RSA 198:40-a, [II(a)-(c) and (e) plus an additional grant of $3,286 to all chartered public schools for the fiscal year ending June 30, 2018, and $3,411 to all chartered public schools for the fiscal year ending June 30, 2019 and each fiscal year thereafter] II(a)-(b)(1) and (2), except for the Virtual Learning Academy Charter School, directly to the chartered public school for each pupil who is a resident of this state in attendance at such chartered public school. [Beginning July 1, 2017 and every biennium thereafter, the department of education shall adjust the per pupil amount of the additional grant based on the average change in the Consumer Price Index for All Urban Consumers, Northeast Region, using the "services less medical care services" special aggregate index, as published by the Bureau of Labor Statistics, United States Department of Labor.] The state shall pay amounts required pursuant to RSA 198:40-a, II[(d)](b)(3) directly to the resident district.
(B) For the Virtual Learning Academy Charter School authorized pursuant to RSA 194-B:3-a, the state shall pay tuition pursuant to RSA 198:40-a, II(a)(4) and II-[(c) and (e)](b)(1)-(2), [plus an additional grant of $2,036] directly to the Virtual Learning Academy Charter School for each eligible full-time enrolled pupil in the chartered public school's ADMA. The state shall pay amounts required pursuant to RSA 198:40-a, II[(d)] (b)(3) directly to the resident district. The state shall also pay tuition pursuant to RSA 198:40-a, II(a)(4) [plus an additional grant of $2,036] directly to the Virtual Learning Academy Charter School for each full-time equivalent pupil. [Beginning July 1, 2017 and every July 1 thereafter, the department of education shall adjust the per pupil amount of the additional grant based on the average change in the Consumer Price Index for All Urban Consumers, Northeast Region, using the "services less medical care services" special aggregate index, as published by the Bureau of Labor Statistics, United States Department of Labor. The average change shall be calculated using the 3 calendar years ending 18 months before the beginning of the fiscal year for which the calculation is to be performed.]
(2) For an online chartered public school which receives its initial authorization to operate from the state board of education pursuant to RSA 194-B:3-a on or after July 1, 2013, the state shall pay tuition pursuant to RSA 198:40-a, II(a)(4) directly to the online chartered public school for each pupil who is a resident of this state in attendance at such chartered public school. In this subparagraph, "online chartered public school" means a chartered public school which provides the majority of its classes and instruction on the Internet.
5 Effective Date. This act shall take effect 60 days after its passage.
19-0280
Revised 1/25/19
HB 711-FN-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT relative to funding an adequate education.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ ] General [ X ] Education [ ] Highway [ ] Other | |||
LOCAL: |
|
|
|
|
Revenue | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | $0 | $0 | $0 | $0 |
METHODOLOGY:
This bill increases the per pupil amount for base adequate education grants, eliminates the differentiated aid component in the education funding formula relative to third grade pupils who do not test at a proficient level in reading, increases the biennial consumer price index adjustment on grant levels, eliminates stabilization grants, and modifies grant amounts to charter public schools. Each change will be discussed below.
The bill seeks to make the aforementioned changes effective July 1, 2021 (FY 2022), however the effective date of the bill is 60 days after passage (FY 2020). Therefore, information below is provided for illustrative purposes only and should not be used as an estimate of fiscal impact on the bill in its current form since clarification on the effective date is necessary.
Changes to Education Grant Calculations
The proposed bill seeks to change the per pupil adequate education base grant from a single rate, to a range, depending on the municipality’s population. Also, it eliminates both the differentiated aid component for third grade students not testing at a proficient level for reading and stabilization grants:
| FY 2022 and Beyond | |
Current Law* | Proposed | |
Base Adequacy |
|
|
Population is Less than 2,000 | $3,782.96 | $7,000.00 |
Population Between 2,000 and 4,000 | $3,782.96 | $6,300.00 |
Population Between 4,000 and 7,000 | $3,782.96 | $5,600.00 |
Population is More than 7,000 | $3,782.96 | $4,900.00 |
|
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|
Differentiated Aid |
|
|
Free and Reduced Lunch | $1,891.47 | $1,900.00 |
Special Education | $2,035.11 | $2,035.00 |
English Language Learner | $740.14 | $740.00 |
3rd Grade Reading | $740.14 | $0 |
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|
|
Stabilization Grants (Vary by Municipality) | Yes | No |
* Based on an assumed 2% CPI adjustment from FY 2020-21 Rates
For illustrative purposes only, the Department of Education, USING FY 2020 PRELIMINARY DATA, has estimated the changes above to result in approximately $300,000,000 in additional annual grants under the education funding formula. This would be an increase to education trust fund expenditures and local revenue. In addition, the CPI adjustment change proposed in this bill would result in per pupil grant amounts increasing automatically at a faster pace than current law.
Impact on Charter Public School Grants
This bill eliminates the additional charter school grants and provides per pupil funding at the new rate proposed. However, it is unclear by this bill how per pupil grants for non-online charter schools would be determined as the bill refers to a municipality’s population. Since it is unclear how this would be interpreted, this bill’s estimate on charter school grants cannot be determined at this time.
AGENCIES CONTACTED:
Department of Education
| Date | Body | Type |
|---|---|---|
| Jan. 29, 2019 | House | Hearing |
| Feb. 19, 2019 | House | Exec Session |
| House | Floor Vote | |
| Feb. 27, 2019 | House | Floor Vote |
Feb. 27, 2019: Inexpedient to Legislate: MA VV 02/27/2019 HJ 6 P. 8
: Committee Report: Inexpedient to Legislate (Vote 19-0; CC)
Feb. 27, 2019: Committee Report: Inexpedient to Legislate for 02/27/2019 (Vote 19-0; CC) HC 13 P. 6
Feb. 19, 2019: Executive Session: 02/19/2019 10:00 am LOB 207
Feb. 13, 2019: Subcommittee Work Session: 02/13/2019 01:00 pm LOB 207
Feb. 7, 2019: Subcommittee Work Session: 02/07/2019 10:00 am LOB 207
Feb. 5, 2019: Subcommittee Work Session: 02/05/2019 01:00 pm LOB 207
Jan. 29, 2019: Public Hearing: 01/29/2019 02:15 pm LOB 210-211
Jan. 3, 2019: Introduced 01/03/2019 and referred to Education HJ 3 P. 27