Revision: Jan. 25, 2019, 4:23 p.m.
SB 265-FN-LOCAL - AS INTRODUCED
2019 SESSION
19-0969
05/06
SENATE BILL 265-FN-LOCAL
AN ACT relative to maintaining stabilization grants at the current level.
SPONSORS: Sen. Dietsch, Dist 9; Rep. Ladd, Graf. 4
COMMITTEE: Education and Workforce Development
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ANALYSIS
This bill provides that, beginning in fiscal year 2020, stabilization grants shall remain at the level provided in fiscal year 2018 rather than decreasing by 4 percent per year.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19-0969
05/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to maintaining stabilization grants at the current level.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 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] 92 percent for fiscal year 2018, 88 percent for fiscal year 2019, and, for fiscal year 2020 and each fiscal year thereafter, 92 percent of the fiscal year 2012 stabilization grant, if any. 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.
19-0969
1/25/19
SB 265-FN-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT relative to maintaining stabilization grants at the current level.
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 | $12,678,036 | $19,017,053 | $25,356,071 | $31,695,089 |
Funding Source: | [ ] General [ X ] Education [ ] Highway [ ] Other | |||
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LOCAL: |
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Revenue | $12,678,036 | $19,017,053 | $25,356,071 | $31,695,089 |
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 beyond, at the FY 2018 level (92% of original FY 2012 amount). Under current law, each year the stabilization grant amount decreases by four percent of the original amount, or approximately $6.3 million statewide. 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 2018 | 92% | $145,797,409 | 92% | No Change | No Change |
FY 2019 | 88% | $139,458,392 | 88% | No Change | No Change |
FY 2020 | 84% | $133,119,374 | 92% | $145,797,409 | $12,678,036 |
FY 2021 | 80% | $126,780,356 | 92% | $145,797,409 | $19,017,053 |
FY 2022 | 76% | $120,441,338 | 92% | $145,797,409 | $25,356,071 |
FY 2023 | 72% | $114,102,320 | 92% | $145,797,409 | $31,695,089 |
AGENCIES CONTACTED:
Department of Education