Revision: Jan. 22, 2021, 10:16 a.m.
HB 594-FN - AS INTRODUCED
2021 SESSION
21-0780
06/04
HOUSE BILL 594-FN
AN ACT relative to the school building aid program.
SPONSORS: Rep. Luneau, Merr. 10; Rep. Cahill, Rock. 17
COMMITTEE: Education
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ANALYSIS
This bill changes the formulas for school building aid grants.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
21-0780
06/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to the school building aid program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Grant for School 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] be less than $50,000,000 per fiscal year [less] plus 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 no state bonds shall be authorized or issued for the purpose of funding such school building aid grants.
2 Amount of Grant. Amend RSA 198:15-b, I(a) to read as follows:
I.(a)(1) For construction authorized by a school district on or before July 1, 2013, the amount of the annual grant to any school district duly organized, any city maintaining a school department within its corporate organization, any cooperative school district as defined in RSA 195:1, any receiving district operating an area school as defined in RSA 195-A:1, or any receiving district providing an education to pupils from one or more sending districts under a contract entered into pursuant to RSA 194:21-a or RSA 194:22, shall be a sum equal to 30 percent of the amount of the annual payment of principal on all outstanding borrowings of the school district, city, cooperative school district, joint maintenance agreement, or receiving district, heretofore or hereafter incurred, for the cost of construction or purchase of school buildings and school administrative unit facilities, or for the cost of acquiring, developing, or renovating any municipally-owned land, buildings, or facilities to be used for school district purposes, to the extent approved by the department of education, provided that any school district may receive an annual grant in the amount of 40 percent for the construction of an educational administration building for a school administrative unit, and provided that the amount of the annual grant in the case of a cooperative school district, a joint maintenance agreement, a receiving district operating an area school, or any receiving district providing an education to pupils from one or more sending districts under a contract entered into pursuant to RSA 194:21-a or RSA 194:22, shall be 40 percent plus 5 percent for each pre-existing district in excess of 2 and each sending district in excess of one, and provided further that no cooperative school district, joint maintenance agreement, or receiving district operating an area school, shall receive an annual grant in excess of 55 percent.
(2)[(A)] For construction authorized by a school district after July 1, 2013, school building aid grants for new construction shall not exceed the state appropriation for school building aid for the fiscal year, less any debt service payments due and owing in the fiscal year for construction or renovation projects approved in a prior fiscal year, less the amount owed for construction or renovation projects approved prior to July 1, 2013 in accordance with subparagraph (a)(1), unless otherwise provided by an act of the general court. School building aid grants approved pursuant to RSA 198:15-u through RSA 198:15-w, shall be disbursed to school districts pursuant to this subparagraph and no state bonds shall be authorized or issued for the purpose of funding school building aid grants. The amount of the grant to any school district duly organized, any city maintaining a school department within its corporate organization, any cooperative school district as defined in RSA 195:1, any receiving district operating an area school as defined in RSA 195-A:1, or any receiving district providing an education to pupils from one or more sending districts under a contract entered into pursuant to RSA 194:21-a or RSA 194:22, shall be calculated based on the criteria set forth in RSA 198:15-v.
[(B)] (3) For approved school building aid applications submitted between July 1, 2013 and June 30, 2021, the state board of education shall approve the disbursement of 80 percent of the eligible grant amount upon approval of the application for school building aid grants by the state board of education, and shall disburse the balance of the grant amount upon completion of the construction and verification of the final cost of construction by the department of education.
(4)(A) For approved school building aid applications for planning and design projects, submitted after July 1, 2021, the department of education shall reimburse schools 100 percent of the eligible grant amount upon completion of the work identified in the application and upon validation of the final costs by the department of education. For school building aid applications for construction projects and emergency projects, submitted after July 1, 2021, the department of education shall disburse 20 percent of the eligible grant amount upon approval of the school building aid application and disburse the balance of the grant amount in 20 equal annual payments upon completion of the construction and verification of the final cost of construction by the department of education. Upon completion of construction the department of education shall validate final project costs. Submission for reimbursement of fraudulent costs to the department of education may result in disallowance and reduction of the grant award.
(B) The state board of education shall adopt rules pursuant to RSA 541–A, relative to procedures for grant applications for planning and design projects, construction projects, and emergency projects, and the criteria for the department of education in determining and funding such awards.
(C) The department of education shall determine which applications shall be granted and what portion of funds shall be awarded to schools for planning and design projects, construction projects, and emergency projects. In making such determinations, state board of education rules shall require the department of education publish a rank ordered list of all publicly owned school facilities. The ranked list shall prioritize schools based on the amount of space necessary to meet the minimum standards and the date of the last major construction or reconstruction project, and other factors deemed significant by the department of education.
[(C)] (5) The amount of the grant to any chartered public school established in accordance with RSA 194-B:3-a shall be 30 percent of the eligible cost of construction.
[(D)] (6) Any state aid for leased space pursuant to RSA 198:15-hh shall require a separate appropriation, and shall not be included in the state appropriation for school building aid.
(E) (7) Funds received from charitable trusts, bequests, gifts, insurance policies, federal grants, or grants from other state programs shall be subtracted from total project costs when computing grants under this paragraph.
3 Approval of Plans, Specifications, and Costs of Construction or Purchase. RSA 198:15-c, I-II is repealed and reenacted to read as follows:
I. A school district maintaining approved schools, may submit its plans, specifications, cost, and purchase estimates in writing to the department of education on such forms as the department shall prescribe. Priority shall be given to projects that improve safety, security, accessibility, and indoor air quality. Projects shall be eligible provided a timely application or letter of intent is filed with the commissioner prior to the start of the project. Projects that started construction between July 1, 2013 and June 30, 2020, shall be eligible to be considered for reimbursement of 20 percent of project costs paid in a lump sum upon award, provided a timely application is filed with the commissioner by June 30, 2022.
II.(a) By April 1 of each year, any school district applying for grants shall submit a grant applications for planning and design projects and construction projects to the department of education.
(b) By November 1 of each year, the department of education shall make grant awards for planning and design projects and construction projects, pending availability of funds.
(c) By November 15 of each year, the department of education shall publish a list of applications received and awards made.
(d) The department of education, upon recommendation of the state fire marshal, shall accept an application at any time during the year for an emergency project if one or more of the conditions are met:
(1) The condition of the school building or portion thereof constitutes a clear and imminent danger or substantial risk to the life or safety of occupants or other persons.
(2) There is actual or imminent risk of loss or damage to property.
4 New Paragraphs; Approval of Plans, Specifications, and Costs of Construction or Purchase; Reports. Amend RSA 198:15-c by inserting after paragraph IV the following new paragraphs:
V. The commissioner shall report annually to the chairpersons of the senate and house committees with jurisdiction over education on the status of each school building with respect to indoor air quality, health complaints, safety complaints, security complaints, accessibility complaints, short and long term absentee rates, and any correlation with student outcomes including performance on standardized tests and graduation rates.
VI. The commissioner shall submit annually to the chairpersons of the senate and house committees with jurisdiction over education a list of grant applications and awards, annual obligations, and a projection of program utilization and bond rates.
5 Alternative School Building Aid Grants. Amend RSA 198:15-v to read as follows:
198:15-v Alternative School Building Aid Grants.
I. The amount of the annual grant to any school district duly organized, any city maintaining a school department within its corporate organization, any cooperative school district as defined in RSA 195:1, or any receiving district operating an area school as defined in RSA 195-A:1, shall be determined as follows:
(a) Determine each municipality's equalized valuation per pupil by dividing the municipality's equalized valuation by the average daily membership in residence within each municipality. Assign each municipality a rank beginning with the municipality having the lowest equalized valuation per pupil ranked as number one, and continuing therefrom. Municipalities without pupils shall be omitted from this calculation.
(b) Determine each municipality's median family income, and assign each municipality a rank beginning with the municipality having the lowest median family income ranked as number one and continuing therefrom. Municipalities without pupils shall be omitted from this calculation.
(c) Add the rankings assigned in subparagraphs I(a) and I(b) and divide the sum by 2 to yield the building aid factor.
II.(a) The amount of the annual grant in this subdivision shall be a sum equal to a percentage of the amount of the annual payment of principal on all outstanding borrowings of the school district, city, cooperative school district, joint maintenance agreement, or receiving district, for all approved costs of construction or purchase of school buildings and school administrative unit facilities, for grants approved on or before July 1, 2013 according to the following table:
Building Aid Factor Single District Preexisting District in a Cooperative School District, Area School, or Joint Maintenance Agreement
Building Aid Factor Joint Maintenance Agreement
0-59 60 percent 60 percent
60-69 55 percent 60 percent
70-89 45 percent 55 percent
90-114 40 percent 50 percent
115 or greater 30 percent 40 percent
(b) For [projects approved after] school building aid applications submitted between July 1, 2013 and June 30, 2021, the amount of the grant to any school district, city, cooperative school district, joint maintenance agreement, or receiving district shall be a sum equal to the percentage of all approved costs for construction or purchase of school buildings according to the following table:
Building Aid Factor Building Aid Grant
0-59 60 percent
60-69 55 percent
70-89 45 percent
90-114 40 percent
115 or greater 30 percent
(c) For school building aid applications submitted after June 30, 2021, the amount of the annual grant shall be a sum equal to the percentage of all approved project costs according to the following table:
Building Aid Factor Building Aid Grant
0-15 80 percent
15-30 75 percent
30-45 70 percent
45-60 65 percent
60-70 60 percent
70-80 55 percent
80-90 50 percent
90-100 45 percent
100-125 40 percent
125-150 35 percent
150-175 30 percent
175-205 25 percent
205 or greater 20 percent
III. A cooperative school district, receiving district operating an area school, or joint maintenance agreement grant amount shall be determined by calculating the percentage of the average daily membership in residence represented by each municipality which has entered into the agreement and multiplying this percentage by each municipality's percentage of annual building aid eligibility under paragraph II of this section. This product shall be multiplied by the projected cost of the building project. The sum of the resulting products shall be the annual building aid grant for the cooperative school district, area school, or joint maintenance agreement.
6 Effective Date. This act shall take effect 60 days after its passage.
21-0780
Revised 1/20/21
HB 594-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the school building aid program.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | $14,960,000 | $18,010,000 | $22,570,000 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other | |||
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|
|
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LOCAL: |
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|
|
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Revenue | $0 | $14,960,000 | $18,010,000 | $22,570,000 |
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. Assuming a base appropriation of only existing obligations, or “tail payments”, this bill, beginning in FY 2022, would result in the following increases to state appropriations and expenditures and local revenue (amounts rounded):
| FY 2022 | FY 2023 | FY 2024 |
Proposed Minimum Annual Expenditure | $50,000,000 | $50,000,000 | $50,000,000 |
(Less: Base Appropriation Needed for Existing Obligations) | ($35,040,000) | ($31,990,000) | ($27,430,000) |
Increase to State Appropriation/Expenditures and Local Revenue | $14,960,000 | $18,010,000 | $22,570,000 |
It is assumed this bill will have no fiscal impact until after July 1, 2021.
AGENCIES CONTACTED:
Department of Education