Revision: Feb. 1, 2019, 1:11 p.m.
HB 713-FN-LOCAL - AS INTRODUCED
2019 SESSION
19-0434
04/06
HOUSE BILL 713-FN-LOCAL
AN ACT relative to education funding.
SPONSORS: Rep. Weyler, Rock. 13; Rep. Cordelli, Carr. 4; Rep. Leishman, Hills. 24; Sen. Birdsell, Dist 19
COMMITTEE: Education
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ANALYSIS
This bill:
I. Increases the base per pupil cost of an adequate education and increases the amount to pupils eligible for a free or reduced price meal.
II. Establishes a grant program to provide additional funds to school districts based on a municipality's equalized valuation per pupil.
III. Allows local school boards to determine pupil transportation policy.
IV. Requires the legislative oversight committee to evaluate the effects of the changes to the adequate education funding formula and the grant program.
V. Repeals stabilization grants.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19-0434
04/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to education funding.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Cost of an Opportunity for an Adequate Education. Amend RSA 198:40-a to read as follows:
198:40-a Cost of an Opportunity for an Adequate Education.
I. For the biennium beginning July 1, [2015] 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) A cost of [$3,561.27] $3,897 per pupil in the ADMA, plus differentiated aid as follows:
(b) An additional [$1,780.63] $2,500 for each pupil in the ADMA who is eligible for a free or reduced price meal; 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 for each third grade pupil in the ADMA with a score below the proficient level on the reading component of the state assessment administered pursuant to RSA 193-C:6 or the authorized, locally-administered assessment as provided in RSA 193-C:3, IV(i), provided the pupil is not eligible to receive differentiated aid pursuant to subparagraphs (b)-(d). A school district receiving aid under this subparagraph shall annually provide to the department of education documentation demonstrating that the district has implemented an instructional program to improve non-proficient pupil reading].
III. The sum total calculated under paragraph II shall be the cost of an adequate education. The department shall determine the cost of an adequate education for each municipality based on the ADMA of pupils who reside in that municipality.
2 Chartered Public Schools; Funding. Amend RSA 194-B:11, I(b)(1) 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, 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) 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)-(c) [and (e)], 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) directly to the resident district. The state shall also pay tuition pursuant to RSA 198:40-a, II(a) 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.
3 Adequate Education; Grant Program. RSA 198:40-c is repealed and reenacted to read as follows:
198:40-c Grant Program.
I. A grant program based on equalized valuation per pupil is hereby established in the department to provide funding assistance to a school district in support of academic growth and achievement in kindergarten through grade 12. The commissioner shall administer the grant program. A school district may expend grant funds in a manner which best fits local needs.
II. A school district may apply for a grant by submitting to the department a grant accountability plan identifying essential programs and accountability indicators, considering educational needs and identifying at what grade levels grant funds will be used. Grant accountability plans shall demonstrate new and innovative approaches as well as best educational practices contributing to academic achievement and growth. The commissioner shall review applications on a first come, first served basis, and shall determine grant amounts as provided in this section. A school district shall submit an annual grant accountability progress report which shall include details on expenditures made under the grant accountability plan and progress updates on the indicators set forth in the delivery of an adequate education pursuant to RSA 193-E:3, I.
III.(a) In addition to aid for the cost of the opportunity for an adequate education provided under RSA 198:40-a, each biennium, the commissioner shall calculate and distribute in each year of the biennium a grant to a municipality’s school districts and to chartered public schools approved under RSA 194-B as follows:
(1) A municipality with an equalized valuation per pupil of $660,000 or less shall receive $2,500 per pupil in the municipality's ADMA.
(2) A municipality with an equalized valuation per pupil between $660,001 and $999,999 shall receive .0044 cents per pupil in the municipality's ADMA per dollar of equalized valuation per pupil between $660,001 and $999,999.
(3) A municipality with an equalized valuation per pupil of $1,000,000 or more shall receive no grant aid, provided that any school within such municipality which the department of education has identified as a Title I school may receive $2,500 per pupil attending such school in the municipality's ADMA.
(b) The commissioner shall recalculate the equalized valuation per pupil in each municipality every 5 years and shall adjust the grant distributions accordingly.
IV. In addition to the requirements of paragraph II:
(a) A cooperative school district that enrolls students in kindergarten through grade 12 shall inform the department of the school districts within the cooperative that qualify for the grant and the number of students enrolled in the cooperative school district from each qualifying school district. The commissioner shall calculate the grant amount based on this information. This procedure shall also apply to a school district which is a party to a tuition agreement.
(b) A school district may apply for grant funds for a school within the district that is not part of a cooperative school district agreement. This provision shall also apply to a school district which is a party to a tuition agreement.
V. Grants shall be distributed pursuant to RSA 198:42.
VI. In this section, "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 in the determination year.
4 School Boards; Transportation of Pupils. Amend RSA 189:6 to read as follows:
189:6 Transportation of Pupils. The local school district [shall furnish transportation to all pupils in grade 1 through grade 8 who live more than 2 miles from the school to which they are assigned. The local school board may furnish transportation to kindergarten pupils, pupils in grades above the eighth or to any pupils residing less than 2 miles from the school to which they are assigned, when it finds that this is appropriate, and shall furnish it when so directed by the commissioner of education] may furnish transportation to all pupils in kindergarten through grade 12.
5 Statewide Education Improvement and Assessment Program; Legislative Oversight Committee. RSA 193-C:7 is repealed and reenacted to read as follows:
193-C:7 Legislative Oversight Committee.
I. A legislative oversight committee shall be established consisting of:
(a) Six members of the house of representatives, at least one of whom shall be on the finance committee, appointed by the speaker of the house of representatives.
(b) One member of the senate, appointed by the senate president.
II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.
6 New Paragraph; Legislative Oversight Committee; Duties. Amend RSA 193-C:8 by inserting after paragraph XII the following new paragraph:
XIII. Evaluate, review, and report annually by November 1, the effects of the grant program established in RSA 198:40-c, including whether the grant program and the adequate education funding formula set forth in 198:40-a has improved academic growth and achievement, and make recommendations for legislation for further legislation as needed. The report shall be submitted to the speaker of the house of representatives, senate president, chairpersons of the house and senate education and finance committees, and the governor.
7 Repeal. RSA 198:41, IV, relative to stabilization grants, is repealed.
8 Effective Date. This act shall take effect July 1, 2021.
19-0434
Revised 1/31/19
HB 713-FN-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT relative to education funding.
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 | $0 | $0 | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ ] General [ X ] Education [ ] Highway [ ] Other | |||
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LOCAL: |
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Revenue | $0 | $0 | Indeterminable Increase | Indeterminable Increase |
Expenditures | $0 | $0 | Indeterminable | Indeterminable |
METHODOLOGY:
This bill, effective July 1, 2021 (FY 2022), increases the per pupil amount for base adequacy grants and differentiated aid relative to free and reduced lunch pupils, effectively reduces the rates for special education and English language learner differentiated aid, while eliminating the differentiated aid component relative to third grade pupils who do not test at a proficient level in reading, provides an additional targeted aid per pupil grant based on a municipality’s equalized valuation per pupil, eliminates stabilization grants, and modifies the requirement for school districts to provide transportation. Each change will be discussed below.
Changes to Education Grant Calculations
The proposed bill modifies the base amount for adequacy and each differentiated aid component, as well as eliminates stabilization grants:
| FY 2022 and Beyond | |
Current Law* | Proposed | |
Base Adequacy | $3,782.96 | $3,897.00 |
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Differentiated Aid |
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Free and Reduced Lunch | $1,891.47 | $2,500.00 |
Special Education | $2,035.11 | $1,956.09 |
English Language Learner | $740.14 | $711.40 |
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
In addition to the above changes, this bill also establishes a new per pupil grant program based upon a municipality’s equalized valuation per pupil (EVPP), which is assumed to become part of the total education grant calculation. Municipalities with an EVPP of $660,000 or less would receive an additional $2,500 per pupil and municipalities with an EVPP of $1,000,000 or greater would receive no grant, however Title I schools within such municipality may receive $2,500 per pupil attending such school. Municipalities that fall between $660,001 and $999,999 will receive a partial grant of an amount equal to $0.0044 per one dollar of EVPP it has less than $1,000,000, which generates a sliding grant amount based on its EVPP. Below is an illustration of how this grant would be calculated:
| A | B | C | D | E |
EVPP | EVPP < $660K or EVPP > $1M? | Difference $1M and EVPP | Factor | Per Pupil Grant Amount (Default Amount or Column C x Factor) | |
Municipality A | $560,000 | YES | N/A | N/A | $2,500 |
Municipality B | $700,000 | NO | $300,000 | $0.0044 | $1,320 |
Municipality C | $950,000 | NO | $50,000 | $0.0044 | $220 |
Municipality D | $1,100,000 | YES | N/A | N/A | $0 |
Note: Under this bill, a factor of $0.0074 would provide a smoothed grant calculation for all municipalities between $660,001 and $999,999, based on the grant range of $2,500.
For illustrative purposes only, USING FY 2020 PRELIMINARY DATA, and not including the provision for Title I schools in the additional grant determination (data not available), it is estimated the changes above to result in approximately $34,100,000 in net additional annual grants to districts, with some districts recieving less and some more, than current law estimates. This would be an overall increase to education trust fund expenditures and local revenue.
Impact on Charter Public School Grants
Since this bill modifies adequate education rates, it will increase grants to charter public schools Furthermore, the newly established additional grant will also be available to charter public schools, however it is unclear how these grants will be determined as they are based on a municipality’s equalized valuation per pupil. Due to not knowing which municipality (or municipalities) would be considered in determining these grants (municipality where school is located or municpalities where students reside) or what the enrollments would be in FY 2022 and beyond, the increase in payments to charter schools from the education trust fund under this bill cannot be determined.
Transportation
This bill eliminates the requirements for school district provided transportation by allowing districts to set their own transportation policy for kindergarten through grade 12. It is not known how much of an impact, if any, this will have on local school district expenditures.
AGENCIES CONTACTED:
Department of Education