Revision: Dec. 27, 2018, 10:12 a.m.
HB 177-FN - AS INTRODUCED
2019 SESSION
19-0126
06/10
HOUSE BILL 177-FN
AN ACT relative to the calculation of stabilization grants.
SPONSORS: Rep. Ladd, Graf. 4; Rep. Steven Smith, Sull. 11; Rep. Horn, Merr. 2; Rep. Wolf, Merr. 5; Rep. Shaw, Hills. 16; Rep. Hennessey, Graf. 1; Sen. Giuda, Dist 2; Sen. Birdsell, Dist 19
COMMITTEE: Education
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ANALYSIS
This bill limits the education grant to each municipality for fiscal year 2020 and thereafter to an amount equal to the total education grant to that municipality for the fiscal year in which the grant is calculated plus the amount of the fiscal year 2018 stabilization grant to that municipality.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19-0126
06/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to the calculation of stabilization grants.
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] through fiscal year 2019, 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] through fiscal year 2019.
(e) For fiscal year 2020 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 to that municipality for the fiscal year in which the grant is calculated plus the amount of the fiscal year 2018 stabilization grant, if any, distributed to the municipality. 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 60 days after its passage.
19-0126
12/18/18
HB 177-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the calculation of stabilization grants.
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 | $12,678,035 | $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 | $12,678,035 | $19,017,053 | $25,356,071 | $31,695,089 |
Expenditures | $0 | $0 | $0 | $0 |
METHODOLOGY:
This bill, beginning in FY 2020, sets the amount of the stabilization grant portion of the total education grant to municipalities at the FY 2018 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 eliminate the annual reduction and set the stabilization grant at the level it was in FY 2018. The impact of this bill on state Education Trust Fund expenditures and local revenue is as follows:
STABILIZATION GRANT | |||
Year | Current Law | Proposed | Increase |
FY 2020 | $133,119,374 | $145,797,409 | $12,678,035 |
FY 2021 | $126,780,356 | $145,797,409 | $19,017,053 |
FY 2022 | $120,441,338 | $145,797,409 | $25,356,071 |
FY 2023 | $114,102,320 | $145,797,409 | $31,695,089 |
AGENCIES CONTACTED:
Department of Education