Revision: Jan. 25, 2019, 4:23 p.m.
SB 266-FN - AS INTRODUCED
2019 SESSION
19-0391
06/10
SENATE BILL 266-FN
AN ACT relative to funding for kindergarten pupils, keno revenues, and school building aid.
SPONSORS: Sen. Watters, Dist 4; Sen. Feltes, Dist 15; Sen. Hennessey, Dist 5; Sen. Kahn, Dist 10; Sen. Morgan, Dist 23; Sen. Sherman, Dist 24; Rep. Morrison, Rock. 9; Rep. Cahill, Rock. 17
COMMITTEE: Education and Workforce Development
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ANALYSIS
This bill establishes the school building aid fund. This bill also provides that moneys from the keno license fee remain with the lottery commission.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19-0391
06/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to funding for kindergarten pupils, keno revenues, and school building aid.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Education Trust Fund; Definitions; Average Daily Membership in Attendance. Amend RSA 198:38, I(a) to read as follows:
I.(a) "Average daily membership in attendance" or "ADMA" means the average daily membership in attendance, as defined in RSA 189:1-d, III, of pupils in kindergarten through grade 12, in the determination year[, provided that no kindergarten pupil shall count as more than 1/2 day attendance per school year]. ADMA shall only include pupils who are legal residents of New Hampshire pursuant to RSA 193:12 and educated at school district expense which may include public academies or out-of-district placements. For the purpose of calculating funding for municipalities, the ADMA shall not include pupils attending chartered public schools, but shall include pupils attending a charter conversion school approved by the school district in which the pupil resides.
2 School Building Aid; Grant for New Construction. Amend RSA 198:15-a, IV to read as follows:
IV. Beginning July 1, 2013, and every fiscal year thereafter, school building aid grants for construction or renovation projects approved by the department of education shall not exceed $50,000,000 per fiscal year less any debt service payments owed in the fiscal year, unless otherwise provided by an act of the general court. School building aid grants shall be funded from appropriations in the state operating budget and from the school building aid fund established in paragraph V, and no state bonds shall be authorized or issued for the purpose of funding such school building aid grants.
3 New Paragraph; School Building Aid; Grant for School Construction. Amend RSA 198:15-a by inserting after paragraph IV the following new paragraph:
V. There is hereby established the school building aid fund to be used for the purpose of funding school building aid grants under paragraph IV. This fund shall consist of funds collected and paid over to the state treasurer by the lottery commission pursuant to RSA 284:47.
4 Proceeds from Keno Games. Amend RSA 284:47, II(b) to read as follows:
(b) The remainder, less the administrative costs of the lottery commission and prize payouts, shall be deposited in the [education trust fund established in RSA 198:39] school building aid fund established in RSA 198:15-a, V.
5 Education Trust Fund Invested. Amend RSA 198:39, I(h) to read as follows:
(h) All moneys due the fund in accordance with RSA 284:21-j, relative to sweepstakes and the lottery, excluding funds collected pursuant to RSA 284:47.
6 Education Trust Fund Invested. Amend RSA 198:39, I(k) and (l) to read as follows:
(k) [Funds collected and paid over to the state treasurer by the lottery commission pursuant to RSA 284:44 and RSA 284:47.
(l)] Any other moneys appropriated from the general fund.
7 Application of Receipts. Amend RSA 6:12, I(b)(65) to read as follows:
(65) Money received under RSA 77-A, RSA 77-E, RSA 78, RSA 78-A, RSA 78-B, RSA 83-F, [RSA 284:44 and RSA 284:47,] and from the sweepstakes fund, which shall be credited to the education trust fund under RSA 198:39.
8 New Subparagraph; Application of Receipts. Amend RSA 6:12, I(b) by inserting after subparagraph (343) the following new subparagraph:
(344) Moneys received under RSA 284:47 shall be credited to the school building aid fund under RSA 198:15-a, V.
9 Repeal. RSA 198:48-c, III, relative to kindergarten grants beginning in 2020, is repealed.
10 Effective Date. This act shall take effect 60 days after its passage.
19-0391
1/22/19
SB 266-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to funding for kindergarten pupils, keno revenues, and school building aid.
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 | See Methodology | See Methodology | See Methodology | See Methodology | ||||
Expenditures | $14,998,199 | Potential Increase of $15,000,000+ | Potential Increase of $15,000,000+ | Potential Increase of $15,000,000+ | ||||
Funding Source: | [ X ] General [ X ] Education [ ] Highway [ X ] Other - School Building Aid Fund | |||||||
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LOCAL: |
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Revenue | $14,833,199 | Potential Increase of $15,000,000+ | Potential Increase of $15,000,000+ | Potential Increase of $15,000,000+ | ||||
Expenditures | $0 | $0 | $0 | $0 | ||||
METHODOLOGY:
This bill, effective in FY 2020, eliminates the kindergarten grant based on Keno revenue established under RSA 198:48-c, III, and removes the ½ attendance cap on full-day kindergarten pupils for the purpose of calculating adequate education grants. The bill further directs Keno revenue to a newly established school building aid fund.
Under current law, the kindergarten grant based on Keno revenue provides no less than $1,100 per full-day kindergarten pupil per year and up to the full amount calculated under the adequate education formula to the extent it’s funded from Keno revenue. The total amount estimated for these payments in FY 2020 is $9,988,781, which represents the minimum $1,100 per pupil (Keno revenues are expected to be approximately $5,600,000 in FY 2020). Using FY 2019 data (revised October 1, 2018), the estimated net cost to the education trust fund of eliminating the kindergarten grant under RSA 198:48-c, III, including full-day kindergarten pupils in the adequate education grant formula, and dedicating all Keno revenue to school building aid is $14,833,199 in FY 2020 (data to estimate FY 2021 and beyond is not yet available):
IMPACT ON EDUCATION TRUST FUND | |
USING FY 2019 REVISED DATA* | Net Cost / (Savings) |
Elimination of Kindergarten Grants | ($9,988,781) |
Including Full-Day Kindergarten in Adequacy Grants | $19,221,980 |
Keno Revenue No Longer Credited to the Education Trust Fund | $5,600,000 |
TOTAL NET COST TO THE EDUCATION TRUST FUND | $14,833,199 |
*Any changes in kindergarten enrollment figures from FY 2019 data will impact the estimates above.
This bill will also result in additional funds for school building aid projects. The Lottery Commission states Keno revenue is difficult to predict as growth of the game is dependent on local authorization. For FY 2019, Keno revenue is estimated to be $5,250,000, and assuming the experienced annual growth of 7.5% for existing revenue, Keno revenues dedicated for school building aid under this bill is as follows:
| FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Estimated Keno Revenue Dedicated to the School Building Aid Fund (rounded) | $5,600,000 | $6,000,000 | $6,500,000 | $7,000,000 |
In addition to the increase in state expenditures and local revenues discussed above, the Department of Education estimates it would need two new positions relative to school building aid; an architect to review plans and to provide technical assistance, and a business administrator to assist in calculating and processing payments. The cost of these two positions is estimated to be approximately $165,000 per year.
AGENCIES CONTACTED:
Department of Education