Bill Details - HB734 (2019)

HB 734-FN-LOCAL - AS INTRODUCED

 

 

2019 SESSION

19-0629

06/03

 

HOUSE BILL 734-FN-LOCAL

 

AN ACT relative to the annual percentage reduction in stabilization grants to school districts.

 

SPONSORS: Rep. Abbott, Ches. 1; Rep. Berch, Ches. 1; Rep. Cloutier, Sull. 10; Rep. Harvey, Ches. 1; Rep. Horrigan, Straf. 6; Rep. Ames, Ches. 9; Sen. Kahn, Dist 10

 

COMMITTEE: Finance

 

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ANALYSIS

 

This bill suspends the 4 percent annual reduction in stabilization grants for 2 years.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0629

06/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to the annual percentage reduction in stabilization grants to school districts.

 

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

 

1  Cost of Opportunity for an Adequate Education; Determination of 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 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, except fiscal years 2020 and 2021 when the fiscal year 2019 reduction rate shall apply.  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 July 1, 2019.

 

LBAO

19-0629

1/17/19

 

HB 734-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the annual percentage reduction in stabilization grants to school districts.

 

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

$6,339,018

$12,678,036

$12,678,036

$12,678,036

Funding Source:

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

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$6,339,018

$12,678,036

$12,678,036

$12,678,036

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill sets the amount of the stabilization grant portion of the total education grant to municipalities in FY 2020 and FY 2021 at the FY 2019 level.  Under current law, each year the stabilization grant amount decreases by four percent of the original amount, or approximately $6.3 million statewide.  This bill essentially eliminates the annual reduction for the upcoming biennium and the Department of Education assumes the four percent reduction would begin again in FY 2022.  The impact of this bill on state education trust fund expenditures and local revenue is as follows:

 

STABILIZATION GRANT

Year

Current Law

Proposed

Increase

Stabilization %

Stabilization $

Stabilization %

Stabilization $

FY 2019

88%

$139,458,392

88%

No Change

No Change

FY 2020

84%

$133,119,374

88%

$139,458,392

$6,339,018

FY 2021

80%

$126,780,356

88%

$139,458,392

$12,678,036

FY 2022

76%

$120,441,338

84%

$133,119,374

$12,678,036

FY 2023

72%

$114,102,320

80%

$126,780,356

$12,678,036

 

AGENCIES CONTACTED:

Department of Education

 

 

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and referred to Finance HJ 3 P. 28
Feb. 5, 2019 Public Hearing: 02/05/2019 11:00 am LOB 210-211
Feb. 20, 2019 Finance-Division II Work Session: 02/20/2019 10:00 am LOB 209
March 13, 2019 Executive Session: 03/13/2019 10:00 am LOB 210-211
March 19, 2019 Committee Report: Inexpedient to Legislate for 03/19/2019 (Vote 21-0; CC) HC 16 P. 10
Committee Report: Inexpedient to Legislate (Vote 21-0; CC)
March 19, 2019 Inexpedient to Legislate: MA VV 03/19/2019 HJ 10 P. 28

Action Dates

Date Body Type
Feb. 5, 2019 House Hearing
March 13, 2019 House Exec Session
House Floor Vote
March 19, 2019 House Floor Vote

Bill Text Revisions

HB734 Revision: 5072 Date: Jan. 18, 2019, 10:16 a.m.