HB623 (2021) Detail

Relative to education funding.


HB 623-FN-LOCAL - AS INTRODUCED

 

 

2021 SESSION

21-0380

06/04

 

HOUSE BILL 623-FN-LOCAL

 

AN ACT relative to education funding.

 

SPONSORS: Rep. Luneau, Merr. 10

 

COMMITTEE: Finance

 

─────────────────────────────────────────────────────────────────

 

ANALYSIS

 

This bill provides  that education grants to municipalities in 2022 and 2023 will not be less than the prior year's grant.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21-0380

06/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

AN ACT relative to education funding.

 

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

 

1  New Subparagraph; Determination of Education Grants.  Amend RSA 198:41, IV by inserting after subparagraph (d) the following new subparagraph:

(e)  For fiscal years 2022 and 2023, the total education grant to each municipality shall not be less than the amount of such grant in the prior year.

2  Adequate Education Grants for Kindergarten.  Amend  2020, 38:37, VI to read as follows:

VI.  Section 2 of this act shall take effect July 1, 2019.

VII.  The remainder of this act shall take effect upon its passage.

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

 

LBA

21-0380

Revised 2/5/21

 

HB 623-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to education funding.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2021

FY 2022

FY 2023

FY 2024

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

See Methodology Section 2

$90,856,172

$90,856,172

$0

Funding Source:

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

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

See Methodology Section 2

$90,856,172

$90,856,172

$0

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill seeks to make two changes relative to education funding.  First, section 1 of this bill provides that total education grants calculated pursuant to RSA 198:41 in FY 2022 and FY 2023, shall be no less than the amount of the such grants in FY 2021. Second, section 2 of this bill attempts to provided kindergarten “start-up” grants for districts with full-day kindergarten programs commencing in FY 2020 and FY 2021.  Both provisions are discussed below.

 

Section 1 (FY 2022 / FY 2023 Total Education Grant)

Based on most recently available enrollment data, and assuming flat enrollments from FY 2022 to FY 2023, estimated total education grants under current law is as follows:

CURRENT LAW

FY 2021
Revised Estimate
10-01-20

FY 2022
Preliminary Estimate
11-15-20

FY 2023

Enrollment Assumed at

FY 2022 Level

Statewide Education Property Tax (SWEPT)*

$363,068,238

$363,283,230

$363,283,230

Calculated Grant

$649,429,577

$559,383,315

$559,383,315

Total Education Grant

$1,012,497,815

$922,666,545

$922,666,545

*SWEPT is collected and retained locally

 

Using most recent enrollment data (FY 2022 preliminary estimates), section 1 of this bill would increase state education trust fund expenditures and local revenue by $90,856,172 in each FY 2022 and FY 2023 ($181,712,344 for the biennium).  There will be no impact in FY 2024 or beyond.

PROPOSED

FY 2022
Preliminary Estimate
11-15-20

FY 2023

Enrollment Assumed at

FY 2022 Level

Statewide Education Property Tax (SWEPT)*

$363,283,230

$363,283,230

Calculated Grant

$650,239,486

$650,239,486

Total Education Grant

$1,013,522,717

$1,013,522,717

 

 

 

Increase From Current Law

$90,856,172

$90,856,172

 

Section 2 (FY 2020 / FY 2021 Kindergarten “Start-Up” Grants)

Section 2 of this bill attempts to change the effective date of kindergarten “start-up” grants to allow for the Department of Education to make payments to districts who started full-time programs in FY 2020 and FY 2021.  Below is an estimate of the payments:

 

FY 2020 First Year Programs

District

First Day Count

Aid Amount

Chester

47

$87,156

Salem

228

$422,801

Windham

178

$330,082

TOTAL

$840,039

 

FY 2021 First Year Programs

District

First Day Count

Aid Amount

Brookline

71

$131,662

Derry

275

$509,957

Epsom

33

$61,195

Hooksett

19

$35,233

Hudson

177

$328,227

TOTAL

$1,066,274

 

The Department of Education, however, has determined that grants as defined in RSA 198:48-b, regardless of the effective date of this statute, cannot be expended without appropriation authority, which is not included in this bill.  

 

AGENCIES CONTACTED:

Department of Education

 

Links

HB623 at GenCourtMobile
HB623 Discussion

Action Dates

Date Body Type
Feb. 9, 2021 House Hearing
Feb. 16, 2021 House Exec Session
Oct. 26, 2021 House Exec Session
Feb. 9, 2021 House Hearing
Oct. 26, 2021 House Exec Session

Bill Text Revisions

HB623 Revision: 31965 Date: Feb. 8, 2021, 9:59 a.m.

Docket


Nov. 4, 2021: Committee Report: Refer for Interim Study HB623-FN-LOCAL 11/04/2021 (Vote 21-0; CC)


: Committee Report: Refer for Interim Study HB623-FN-LOCAL 11/04/2021 (Vote 21-0; CC)


Oct. 6, 2021: Executive Session: 10/26/2021 10:00 am LOB 210-211


Oct. 26, 2021: Executive Session: 10/26/2021 10:00 am LOB 210-211


Sept. 13, 2021: Division II Work Session: 10/06/2021 10:00 am LOB 209


Oct. 6, 2021: Division II Work Session: 10/06/2021 10:00 am LOB 209


March 23, 2021: Retained in Committee


: Retained in Committee


Feb. 16, 2021: Executive Session: 02/16/2021 10:30 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/92166004660


Feb. 4, 2021: Public Hearing: 02/09/2021 10:30 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/92166004660 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


Feb. 9, 2021: Public Hearing: 02/09/2021 10:30 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/92166004660 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


Jan. 6, 2021: Introduced (in recess of) 01/06/2021 and referred to Finance HJ 2 P. 57


Jan. 14, 2021: Introduced (in recess of) 01/06/2021 and referred to Finance HJ 2 P. 57