Bill Text - HB176 (2020)

Relative to grants for school building aid and making an appropriation therefor.


Revision: Jan. 24, 2019, 10:47 a.m.

HB 176-FN-A - AS INTRODUCED

 

 

2019 SESSION

19-0125

06/10

 

HOUSE BILL 176-FN-A

 

AN ACT relative to grants for school building aid and making an appropriation therefor.

 

SPONSORS: Rep. Ladd, Graf. 4; Rep. Morrison, Rock. 9; Rep. Lang, Belk. 4; Rep. Wolf, Merr. 5; Rep. Shaw, Hills. 16

 

COMMITTEE: Education

 

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ANALYSIS

 

This bill requires a general fund appropriation equal to the difference between the statutory maximum school building aid grant amount of $50,000,000 and the state operating budget appropriation for building aid.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0125

06/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to grants for school building aid and making an appropriation therefor.

 

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

 

1  School Building Aid; Grant for School Construction.  Amend RSA 198:15-a, IV to read as follows:

IV.  Beginning July 1, [2013] 2020, and every fiscal year thereafter, school building aid grants for construction or renovation projects approved by the department of education shall [not exceed] not be less than $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].  In addition, each fiscal year, there is hereby appropriated to the department of education for the purpose of making school building aid grants pursuant to this chapter, an amount equal to the difference between $50,000,000 and the state operating budget appropriation for building aid-education, account 06-56-56-561010-6019-77.  The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.  [School building aid grants shall be funded from appropriations in the state operating budget and] No state bonds shall be authorized or issued for the purpose of funding such school building aid grants.

2  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

19-0125

Revised 1/24/19

 

HB 176-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to grants for school building aid and making an appropriation therefor.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$18,200,000

$20,900,000

$22,600,000

$24,500,000

   Revenue

$0

$0

$0

$0

   Expenditures

$18,372,000

$21,080,000

$22,788,000

$24,698,000

Funding Source:

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

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$18,200,000

$20,900,000

$22,600,000

$24,500,000

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill amends RSA 198:15-a, by changing the current maximum expenditure for school building aid grants from $50,000,000 per year, including debt service payments, to a minimum expenditure of $50,000,000 per year, not including debt service payments.  This bill provides an annual general fund appropriation to the Department of Education in an amount equal to the difference $50,000,000 and the state operating budget appropriation for school building aid.  Assuming the state operating budget includes only existing obligations, or “tail payments”, this bill would result in the following increases to state appropriations and expenditures and local revenue:

 

 

FY 2020

FY 2021

FY 2022

FY 2023

Proposed Minimum Annual Expenditure

$50,000,000

$50,000,000

$50,000,000

$50,000,000

(Less: Amount Assumed to be in State Operating Budget)

($31,800,000)

($29,100,000)

($27,400,000)

($25,500,000)

Increase to State Appropriation/Expenditures and Local Revenue

$18,200,000

$20,900,000

$22,600,000

$24,500,000

 

In addition to the increase in state expenditures above, the Department of Education, assuming the moratorium is not reinstated, estimates it will need two new positions to disburse the new money, including: 1) an architect to review plans and provide technical assistant; and 2) a business administrator to assist in calculating school building aid grant percentages, process school building aid applications, and ensure prompt and accurate payments. Additionally, the business administrator would also track, monitor, and report on financial and legislative activity pertaining to school building aid. The positions would both be labor grade 27 and the estimated cost is as follows:

 

  Estimated Cost of New Positions

FY 2020

FY 2021

FY 2022

FY 2023

Architect

(Salary & Benefits)

$86,000

$90,000

$94,000

$99,000

Business Administrator (Salary & Benefits)

$86,000

$90,000

$94,000

$99,000

Total

$172,000

$180,000

$188,000

$198,000

 

AGENCIES CONTACTED:

Department of Education