Bill Text - SB265 (2019)

Relative to maintaining stabilization grants at the current level.


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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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

 

LBAO

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

 

 

 

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

 

 

 

 

 

LOCAL:

 

 

 

 

   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