Revision: May 13, 2022, 3:12 p.m.
SB 420-FN-A-LOCAL - AS AMENDED BY THE HOUSE
21Apr2022... 1384h
4May2022... 1761h
4May2022... 1925h
2022 SESSION
22-3110
10/04
SENATE BILL 420-FN-A-LOCAL
SPONSORS: Sen. Hennessey, Dist 1; Sen. Birdsell, Dist 19; Sen. Bradley, Dist 3; Sen. Watters, Dist 4; Sen. Giuda, Dist 2; Sen. Ricciardi, Dist 9; Sen. Avard, Dist 12; Sen. Carson, Dist 14; Sen. Morse, Dist 22; Rep. Shaw, Hills. 16
COMMITTEE: Education
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AMENDED ANALYSIS
This bill establishes an extraordinary need grant for schools in addition to regular adequate education grants and relief grants. This bill increases the household income level to qualify as an eligible student under the education tax credit program.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
21Apr2022... 1384h
4May2022... 1761h
4May2022... 1925h 22-3110
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Two
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Extraordinary Need Grants for Schools. Amend RSA 198 by inserting after section 40-e the following new section:
198:40-f Extraordinary Need Grants.
I. In addition to aid for the cost of the opportunity for an adequate education provided under RSA 198:40-a, each year the commissioner shall calculate an extraordinary need grant for schools and provide that amount of aid to a municipality's school districts as follows:
(a) A municipality with an equalized valuation per pupil eligible to receive a free or reduced-priced meal of $1,000,000 or less shall receive $650 per pupil eligible to receive a free or reduced-price meal in the municipality's ADMR.
(b) A municipality with an equalized valuation per pupil eligible to receive a free or reduced-price meal between $1,000,001 and $5,999,999 shall receive a grant equal to $0.00013 for each dollar of difference between its equalized valuation per pupil eligible to receive a free or reduced-price meal and $6,000,000, per pupil eligible to receive a free or reduced-price meal in the municipality's ADMR.
(c) A municipality with an equalized valuation per pupil eligible to receive a free or reduced-price meal of $6,000,000 or more shall not receive an extraordinary need grant.
II. In order to receive an extraordinary need grant, the school district shall provide a plan to the department of education outlining how the district intends to improve the educational achievement of students. School districts eligible to receive the grant shall provide the department an accountability plan designed to generate data that measures student academic achievement and growth of knowledge and skills in reading and language arts and/or mathematics in grades 3-8 and at one grade level in high school. A school district receiving a grant award shall submit to the department for approval a grant accountability plan identifying program design elements as required by the department and at what grade levels the funds will be used. The school district, in consultation with the department, shall develop and administer its own grant accountability assessment that identifies a pupil’s range of learning and yields objective data to use in improving instruction and learning, or use the statewide assessment. The school district shall submit to the department an annual grant accountability progress report that includes evidence of satisfactory program implementation and progress toward grant accountability improvement targets. The primary goal of this grant is to improve student achievement and to help the school district to have funding for successful, best practice student learning approaches.
III. Extraordinary need grants shall be distributed pursuant to RSA 198:42.
IV. In this section, "equalized valuation per pupil eligible to receive a free or reduced-price meal" means a municipality's equalized valuation, excluding properties subject to taxation under RSA 82 and equalized payments in lieu of taxes, as determined by the department of revenue administration, that was the basis for the local tax assessment in the determination year, divided by the school district's kindergarten through grade 12 ADMR in the determination year eligible to receive a free or reduced-price meal.
2 New Subparagraph; Determination of Final Adequate Education Grants. Amend RSA 198:41, I by inserting after subparagraph (d) the following new subparagraph:
(e) Add the municipality's extraordinary need grant pursuant to RSA 198:40-f.
3 Education Aid; Fiscal Year 2023. Amend 2021, 91:52 to read as follows:
91:52 Conditional Differential Aid Calculation For Pupils Eligible for a Free or Reduced Price Meal; Fiscal Year 2023.
I. If, as of any of the dates set forth in RSA 198:41, V, VI, or VII, either (a) the state of New Hampshire is in a declared state of emergency pursuant to RSA 4:45 as it relates to the COVID-19 pandemic or (b) the U.S. Department of Agriculture has not rescinded the Child Nutrition Covid-19 Waivers enacted in response to the pandemic, or both, then the department of education shall, in consultation with the governor, determine whether the alternative differential aid calculation set forth in paragraph II is required for fiscal year 2023 when making the required estimate or final determination described in RSA 198:41, V, VI, or VII as applicable.
II. Upon making a determination that the alternative differential aid calculation applies pursuant to paragraph I, the department of education shall divide each pupil in the ADMA who is eligible for a free or reduced price meal by the average daily member in [attendance (ADMA)] residence (ADMR), defined in RSA 198:38, for each district and town for school year 2019-2020. The percentage shall be applied to the [ADMA] ADMR for school year 2021-2022 to establish a new calculation of [ADMA] ADMR for who is eligible for a free or reduced price meal. The greater of the [ADMA] ADMR of pupils who are eligible for a free or reduced price meal for school year 2021-2022 and the new calculation based on the 2019-2020 school year percentage shall be used to calculate the differential aid under RSA 198:40-a, II(b) [and], relief aid under RSA 198:40-e, and extraordinary need grants under RSA 198:40-f.
4 Education Tax Credit; Definition of Eligible Student; Household Income. Amend RSA 77-G:1, VIII(b) to read as follows:
(b) Whose annual household income is less than or equal to [300] 500 percent of the federal poverty guidelines as updated annually in the Federal Register by the United States Department of Health and Human Services under the authority of 42 U.S.C. section 9902(2). The scholarship organization shall verify eligibility under this subparagraph.
I. Sections 1-3 of this act shall take effect July 1, 2022.
II. The remainder of this act shall take effect upon its passage.
22-3110
Amended 5/13/22
SB 420-FN-A-LOCAL- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENTS #2022-1761h and #2022-1925h)
AN ACT establishing an extraordinary need grant for schools and relative to eligibility for the education tax credit.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||||
STATE: | FY 2022 | FY 2023 | FY 2024 | FY 2025 | ||
Appropriation | $0 | $0 | $0 | $0 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Expenditures | $0 | $14,671,976 Grants to Districts
Indeterminable DOE Administrative Costs (if any) | $9,646,850 Grants to Districts
Indeterminable DOE Administrative Costs (if any) | Indeterminable Increase | ||
Funding Source: | [ X ] General [ X ] Education [ ] Highway [ ] Other | |||||
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|
| ||
LOCAL: |
|
|
|
| ||
Revenue | $0 | $14,671,976 | $9,646,850 | Indeterminable Increase | ||
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable | ||
METHODOLOGY:
This bill establishes extraordinary need grants for schools within the education funding adequacy formula. This grant is calculated based on equalized valuation per free and reduced-price meal pupils (EVFRP). An EVFRP of $1 million or less awards a municipality $650 per F&R pupil, while municipalities with an EVFRP of $6 million or greater are not eligible. Municipalities with an EVFRP between $1 million and $6 million receive a grant between $650 and $150 on a sliding scale basis for each F&R pupil. The Department of Education has provided the following estimates of this bill’s impact on state education trust fund expenditures and local revenue for FY 2023 and FY 2024 (FY 2025 and beyond is indeterminable due to variability in pupil and equalized valuation data):
Preliminary Estimates Only | TOTAL FINAL STATE GRANT* | |
FY 2023 | FY 2024 | |
Current Law | $954,654,750 | $951,581,686 |
Proposed | $969,326,726 | $961,228,536 |
Increase | $14,671,976 | $9,646,850 |
* Includes Statewide Education Property Tax (SWEPT) raised and retained locally
| FY 2023 | FY 2024 |
State Total | $14,671,976 | $9,646,850 |
Acworth | 17,137 | 5,781 |
Albany | 10,345 | 7,116 |
Alexandria | 7,520 | 0 |
Allenstown | 105,134 | 45,876 |
Alstead | 37,325 | 21,893 |
Alton | 0 | 0 |
Amherst | 0 | 0 |
Andover | 33,941 | 3,689 |
Antrim | 40,189 | 31,806 |
Ashland | 29,605 | 25,770 |
Atkinson | 0 | 0 |
Auburn | 0 | 0 |
Barnstead | 53,490 | 31,056 |
Barrington | 0 | 0 |
Bartlett | 0 | 0 |
Bath | 6,209 | 5,433 |
Bedford | 0 | 0 |
Belmont | 153,884 | 111,718 |
Bennington | 28,762 | 18,810 |
Benton | 2,639 | 0 |
Berlin | 377,415 | 300,708 |
Bethlehem | 32,604 | 22,986 |
Boscawen | 75,249 | 30,801 |
Bow | 0 | 0 |
Bradford | 10,392 | 6,375 |
Brentwood | 0 | 0 |
Bridgewater | 0 | 0 |
Bristol | 41,113 | 14,294 |
Brookfield | 0 | 0 |
Brookline | 0 | 0 |
Cambridge | 0 | 0 |
Campton | 26,913 | 21,944 |
Canaan | 53,048 | 8,562 |
Candia | 0 | 0 |
Canterbury | 0 | 0 |
Carroll | 0 | 0 |
Center Harbor | 0 | 0 |
Charlestown | 184,487 | 103,220 |
Chatham | 0 | 0 |
Chester | 0 | 0 |
Chesterfield | 0 | 0 |
Chichester | 0 | 0 |
Claremont | 489,872 | 355,188 |
Clarksville | 4,368 | 2,211 |
Colebrook | 69,847 | 48,230 |
Columbia | 5,800 | 1,375 |
Concord | 519,921 | 482,405 |
Conway | 58,998 | 0 |
Cornish | 0 | 0 |
Croydon | 1,280 | 0 |
Dalton | 24,386 | 14,538 |
Danbury | 20,141 | 8,426 |
Danville | 0 | 0 |
Deerfield | 0 | 0 |
Deering | 26,299 | 13,679 |
Derry | 279,038 | 66,012 |
Dix's Grant | 0 | 0 |
Dixville | 0 | 0 |
Dorchester | 5,144 | 1,889 |
Dover | 221,079 | 122,248 |
Dublin | 0 | 0 |
Dummer | 0 | 0 |
Dunbarton | 0 | 0 |
Durham | 0 | 0 |
East Kingston | 0 | 0 |
Easton | 0 | 0 |
Eaton | 0 | 0 |
Effingham | 56,023 | 28,583 |
Ellsworth | 1,519 | 1,519 |
Enfield | 0 | 0 |
Epping | 0 | 0 |
Epsom | 6,942 | 6,942 |
Errol | 0 | 0 |
Exeter | 0 | 0 |
Farmington | 226,178 | 133,610 |
Fitzwilliam | 21,246 | 0 |
Francestown | 0 | 0 |
Franconia | 0 | 0 |
Franklin | 350,346 | 265,168 |
Freedom | 0 | 0 |
Fremont | 0 | 0 |
Gilford | 0 | 0 |
Gilmanton | 0 | 0 |
Gilsum | 18,291 | 15,441 |
Goffstown | 30,199 | 0 |
Gorham | 20,586 | 1,292 |
Goshen | 13,112 | 10,665 |
Grafton | 23,758 | 18,098 |
Grantham | 0 | 0 |
Greenfield | 19,652 | 7,821 |
Greenland | 0 | 0 |
Greenville | 48,403 | 43,564 |
Groton | 10,501 | 1,140 |
Hale's Location | 0 | 0 |
Hampstead | 0 | 0 |
Hampton | 0 | 0 |
Hampton Falls | 0 | 0 |
Hancock | 0 | 0 |
Hanover | 0 | 0 |
Harrisville | 0 | 0 |
Hart's Location | 0 | 0 |
Haverhill | 122,773 | 86,233 |
Hebron | 0 | 0 |
Henniker | 31,201 | 0 |
Hill | 7,759 | 0 |
Hillsboro | 159,061 | 125,272 |
Hinsdale | 131,254 | 120,893 |
Holderness | 0 | 0 |
Hollis | 0 | 0 |
Hooksett | 0 | 0 |
Hopkinton | 0 | 0 |
Hudson | 0 | 0 |
Jackson | 0 | 0 |
Jaffrey | 106,622 | 84,386 |
Jefferson | 8,706 | 6,956 |
Keene | 381,646 | 249,073 |
Kensington | 0 | 0 |
Kingston | 0 | 0 |
Laconia | 354,991 | 289,944 |
Lancaster | 131,068 | 100,355 |
Landaff | 3,538 | 3,538 |
Langdon | 1,729 | 0 |
Lebanon | 0 | 0 |
Lee | 0 | 0 |
Lempster | 20,241 | 2,344 |
Lincoln | 0 | 0 |
Lisbon | 88,658 | 66,263 |
Litchfield | 0 | 0 |
Littleton | 158,145 | 151,725 |
Londonderry | 0 | 0 |
Loudon | 15,235 | 0 |
Lyman | 63 | 0 |
Lyme | 0 | 0 |
Lyndeborough | 0 | 0 |
Madbury | 0 | 0 |
Madison | 0 | 0 |
Manchester | 3,945,040 | 2,546,080 |
Marlborough | 47,103 | 33,905 |
Marlow | 13,170 | 1,248 |
Martin's Location | 0 | 0 |
Mason | 0 | 0 |
Meredith | 0 | 0 |
Merrimack | 0 | 0 |
Middleton | 48,225 | 13,908 |
Milan | 24,390 | 17,917 |
Milford | 28,342 | 20,434 |
Millsfield | 0 | 0 |
Milton | 73,481 | 16,742 |
Monroe | 0 | 0 |
Mont Vernon | 0 | 0 |
Moultonborough | 0 | 0 |
Nashua | 1,696,039 | 1,145,427 |
Nelson | 0 | 0 |
New Boston | 0 | 0 |
New Castle | 0 | 0 |
New Durham | 0 | 0 |
New Hampton | 5,899 | 0 |
New Ipswich | 37,703 | 15,902 |
New London | 0 | 0 |
Newbury | 0 | 0 |
Newfields | 0 | 0 |
Newington | 0 | 0 |
Newmarket | 28,238 | 0 |
Newport | 248,656 | 245,978 |
Newton | 0 | 0 |
North Hampton | 0 | 0 |
Northfield | 96,758 | 87,703 |
Northumberland | 79,964 | 64,483 |
Northwood | 0 | 0 |
Nottingham | 0 | 0 |
Odell | 0 | 0 |
Orange | 0 | 0 |
Orford | 16,862 | 16,862 |
Ossipee | 121,845 | 63,557 |
Pelham | 0 | 0 |
Pembroke | 69,113 | 25,498 |
Penacook | 110,314 | 89,294 |
Peterborough | 43,512 | 0 |
Piermont | 0 | 0 |
Pinkham's Grant | 0 | 0 |
Pittsburg | 0 | 0 |
Pittsfield | 151,219 | 89,670 |
Plainfield | 0 | 0 |
Plaistow | 0 | 0 |
Plymouth | 79,507 | 49,559 |
Portsmouth | 0 | 0 |
Randolph | 483 | 483 |
Raymond | 74,536 | 0 |
Richmond | 21,785 | 18,570 |
Rindge | 34 | 0 |
Rochester | 843,453 | 561,954 |
Rollinsford | 0 | 0 |
Roxbury | 2,990 | 1,494 |
Rumney | 8,626 | 0 |
Rye | 0 | 0 |
Salem | 0 | 0 |
Salisbury | 43 | 0 |
Sanbornton | 0 | 0 |
Sandown | 0 | 0 |
Sandwich | 0 | 0 |
Seabrook | 0 | 0 |
Sharon | 0 | 0 |
Shelburne | 3,471 | 3,471 |
Somersworth | 306,129 | 251,522 |
South Hampton | 0 | 0 |
Springfield | 0 | 0 |
Stark | 2,690 | 2,138 |
Stewartstown | 20,128 | 11,899 |
Stoddard | 0 | 0 |
Strafford | 0 | 0 |
Stratford | 31,991 | 30,386 |
Stratham | 0 | 0 |
Success | 0 | 0 |
Sugar Hill | 0 | 0 |
Sullivan | 15,070 | 2,921 |
Sunapee | 0 | 0 |
Surry | 3,414 | 0 |
Sutton | 813 | 0 |
Swanzey | 157,014 | 95,995 |
Tamworth | 55,384 | 44,232 |
Temple | 0 | 0 |
Thornton | 10,601 | 0 |
Tilton | 45,427 | 45,427 |
Troy | 72,294 | 64,830 |
Tuftonboro | 0 | 0 |
Unity | 18,252 | 6,823 |
Wakefield | 26,336 | 0 |
Walpole | 25,814 | 0 |
Warner | 19,096 | 898 |
Warren | 21,088 | 21,088 |
Washington | 0 | 0 |
Waterville Valley | 0 | 0 |
Weare | 9,834 | 0 |
Webster | 0 | 0 |
Wentworth | 12,403 | 1,757 |
Wentworth's Location | 0 | 0 |
Westmoreland | 0 | 0 |
Whitefield | 80,428 | 51,155 |
Wilmot | 0 | 0 |
Wilton | 34,045 | 22,126 |
Winchester | 151,031 | 108,647 |
Windham | 0 | 0 |
Windsor | 0 | 0 |
Wolfeboro | 0 | 0 |
Woodstock | 8,870 | 0 |
This bill also requires school districts to provide an accountability plan to the Department of Education, including an outline as to how the district intends to improve the educational achievement of students, in order to receive an extraordinary needs grant. The Department has not yet provided information on this provision's potential impact to state or local school district expenditures.
Additionally, this bill changes the income eligibility for education tax credit (ETC) scholarships from 300% to 500% of the federal poverty guidelines. While this may increase eligible students, ETC program expenditures are subject to donations made. Therefore, since this bill makes no changes to program donations, it is not expected to have an impact on state revenue or expenditures.
AGENCIES CONTACTED:
Department of Education and Department of Revenue Administration