HB1665 (2024) Detail

(New Title) relative to student eligibility for education freedom accounts and the scholarship organization's costs of administering the program, extending phase-out grants for education freedom accounts, and revising the definitions of average daily membership in attendance and average daily membership in residence.


HB 1665-FN - AS AMENDED BY THE SENATE

 

05/22/2024   1809s

2024 SESSION

24-2646

02/10

 

HOUSE BILL 1665-FN

 

AN ACT relative to student eligibility for education freedom accounts and the scholarship organization's costs of administering the program, extending phase-out grants for education freedom accounts, and revising the definitions of average daily membership in attendance and average daily membership in residence.

 

SPONSORS: Rep. Cordelli, Carr. 7; Rep. Ladd, Graf. 5; Rep. Pitre, Straf. 1; Rep. Noble, Hills. 2; Rep. Soti, Rock. 35; Rep. Verville, Rock. 2; Rep. Brouillard, Rock. 1; Rep. A. Lekas, Hills. 38; Sen. Murphy, Dist 16

 

COMMITTEE: Education

 

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AMENDED ANALYSIS

 

This bill:

 

I.  Raises the annual household income threshold for eligible students and reduces the amount that the scholarship organization may retain to cover administrative costs.

 

II.  Extends the phase-out grants provided under the education freedom account (EFA) program and directs the department of education to submit an annual report regarding EFA funding and costs.

 

III.  Revises the definitions of average daily membership in attendance (ADMA) and average daily membership in residence (ADMR) for school funding from the education trust fund for the purpose of home educated pupils and pupils participating in the EFA 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05/22/2024   1809s 24-2646

02/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Four

 

AN ACT relative to student eligibility for education freedom accounts and the scholarship organization's costs of administering the program, extending phase-out grants for education freedom accounts, and revising the definitions of average daily membership in attendance and average daily membership in residence.

 

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

 

1  Education Freedom Accounts; Definitions.  Amend RSA 194-F:1, VI to read as follows:

VI.  "Eligible student" means a resident of this state who is eligible to enroll in a public elementary or secondary school and whose annual household income at the time the student applies for the program is less than or equal to [350] 400 percent of the federal poverty guidelines as updated annually in the Federal Register by the United States Department of Health and Human Services under 42 U.S.C. section 9902(2).  No income threshold need be met in subsequent years, provided the student otherwise qualifies.  Students in the special school district within the department of corrections established in RSA 194:60 shall not be eligible students.

2  Education Freedom Accounts; Authority and Responsibilities of the Scholarship Organization.  Amend RSA 194-F:4, V to read as follows:

V.  The scholarship organization may withhold from deposits or deduct from EFAs an amount to cover the costs of administering the EFA program, up to a maximum of [10] 8 percent annually.

3  Extension of Phase-Out of Grants to 2029.  Amend RSA 194-F:10, II to read as follows:

II.  The phase-out grants will terminate for new EFA students receiving an EFA effective July 1, [2026] 2029.

4  New Section; Education Freedom Accounts; Reporting Requirement.  Amend RSA 194-F by inserting after section 12 the following new section:

194-F:12-a  Department Reporting Requirement.  On or before November 1, 2024, and each November 1 thereafter, the department shall submit a report to the governor and council and the legislative oversight commission established in RSA 194-F:12 regarding:

I.  The amount of education adequacy aid provided to each school district attributed to students in the first year of the education freedom account program; and

II.  Phase-out grants provided to each school district attributed to students in the second and third year of the education freedom account program.

5  School Funding; ADMA and ADMR; Home Educated Pupils and Pupils Participating in the EFA program.  Amend RSA 198:38, I and I-a to read as follows:

I.(a)  "Average daily membership in attendance" or "ADMA" means the average daily membership in attendance, as defined in RSA 189:1-d, III, of pupils in kindergarten through grade 12, in the determination year.  ADMA shall only include pupils who are legal residents of New Hampshire pursuant to RSA 193:12 and educated at school district expense which may include public academies or out-of-district placements.  For the purpose of calculating funding for municipalities, the ADMA shall not include pupils attending chartered public schools, but shall include pupils attending a charter conversion school approved by the school district in which the pupil resides.

(b)  For the purpose of calculating ADMA, each pupil who is home educated in compliance with RSA 193-A, or who is participating in an education freedom account in compliance with RSA 194-F, and who is enrolled in a school board approved public [high] school academic course in grades 7 through 12 shall count as an additional 0.15 pupil for each such academic course taken in a public [high] school.  [The department of education shall only make grant payments for such pupils to the extent of available appropriations.]  In this subparagraph, "public [high] school" shall have the same meaning as "[high] standard school" as defined in RSA [194:23] 189:24.

I-a.(a)  "Average daily membership in residence" or "ADMR" means the average daily membership in residence, as defined in RSA 189:1-d, IV, of pupils in kindergarten through grade 12, in the determination year.  ADMR shall only include pupils who are legal residents of New Hampshire pursuant to RSA 193:12 and educated at school district expense which may include public academies or out-of-district placements.  For the purpose of calculating funding for municipalities, the ADMR shall not include pupils attending chartered public schools, but shall include pupils attending a charter conversion school approved by the school district in which the pupil resides.

(b)  For the purpose of calculating ADMR, each pupil who is home educated in compliance with RSA 193-A, or who is participating in an education freedom account in compliance with RSA 194-F, and who is enrolled in a school board approved public [high] school academic course in grades 7 through 12 shall count as an additional 0.15 pupil for each such academic course taken in a public [high] school.  [The department of education shall only make grant payments for such pupils to the extent of available appropriations.]  In this subparagraph, "public [high] school" shall have the same meaning as "[high] standard school" as defined in RSA [194:23] 189:24.

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

 

LBA

24-2646

Amended 6/4/24

 

HB 1665-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2024-1809s)

 

AN ACT relative to student eligibility for education freedom accounts and the scholarship organization's costs of administering the program, extending phase-out grants for education freedom accounts, and revising the definitions of average daily membership in attendance and average daily membership in residence.

 

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

 

 

Estimated State Impact - Increase / (Decrease)

 

FY 2024

FY 2025

FY 2026

FY 2027

Revenue

$0

$0

$0

$0

Revenue Fund(s)

None

Expenditures

$0

Education Freedom Accounts -

$1,554,592 Increase in FY 2025,

Indeterminable in FY 2026 and Beyond

 

Home Educated/EFA Adequacy to Districts -

$154,818 Increase in FY 2025

Indeterminable in FY 2026 and Beyond

 

EFA Phase Out Grants to Districts -

Indeterminable Increase in FY 2027

Funding Source(s)

Education Trust Fund

Appropriations

$0

Statutory authority exists for the Department of Education to draw a warrant to access funds to make necessary payments for adequacy grants and education freedom accounts

Funding Source(s)

Education Trust Fund

Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A

Does this bill authorize new positions to implement this bill? [X] N/A

 

Estimated Political Subdivision Impact - Increase / (Decrease)

 

FY 2024

FY 2025

FY 2026

FY 2027

Local Revenue

$0

Home Educated/EFA Student Adequacy

$154,818 Increase in FY 2025

Indeterminable Increase in FY 2026 and Beyond

 

EFA Phase Out Grants -

Indeterminable Increase in FY 2027

Local Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill makes the following changes relative to education freedom accounts (EFAs):

 

  1. Expands eligibility for the education freedom account (EFA) program by increasing the federal poverty threshold from less than or equal to 350 percent to less than or equal to 400 percent of the federal poverty guidelines as updated annually in the Federal Register by the United States Department of Health and Human Services under 42 U.S.C section 9902(2).  

 

Based on assumptions provided by the Department of Education (see below), it is estimated that an approximate 6.00% of New Hampshire households fall within 350 and 400 percent if evenly distributed.  Based on this estimate and the current number of students enrolled in the EFA program, this bill could potentially increase enrollment by approximately 296 students.  The estimated increase in cost due to the increase in enrollment of approximately 296 students with the typical grant averaging $5,252 would be approximately $1,554,592.  These estimated costs could first be incurred beginning in FY 2025.  

 

The following assumptions and calculations are being used to determine an estimated increase by increasing the federal poverty level guideline from 350 percent to 400 percent:

 

  • Due to limited income distribution data specifically for the State of New Hampshire, based estimates on 2021 US Household Income Distribution obtained from World Economic Forum website, www.weforum.org (once on the site, search US Household Income Distribution and pull up the information).  Based on the site, 12% of US households are between $75,000 and $100,000.  In this estimate the Department is assuming that New Hampshire income distribution is similar to that of the US.  The average household size in New Hampshire is about 3 household members so that was used in determining estimates utilizing the federal poverty threshold table.  For a household size of three, the annual income for a 350% federal poverty threshold is $87,010 and the annual income for a 400% federal poverty threshold is $99,400.

 

  • There are currently 4,933 students enrolled in the EFA program as of the April 1 payment and using the estimated percentage of the number of US households that fall between 350 and 400 percent (6.00%), then the estimated number of students would be 5,229 ((4,933*0.06) + 4,933), an increase of approximately 296 students.  The estimated indeterminable increase was determined by multiplying the 296 by the average EFA grant of 5,252 estimating the cost to be approximately $1,554,592.

 

  1. Reduces the annual percent that the scholarship organization may withhold from deposits or deduct from EFA. An amount to cover the costs of administering the EFA program will be reduced from up to a maximum of 10 percent annually to a maximum of 8 percent annually.  

 

The EFA student would still be receiving the same funding based on their eligibility and approval based on RSA 194-F so there would not be a direct fiscal impact.  This bill would limit how much the scholarship organization would receive for administering the EFA program.  There would be 2 percent of additional EFA grant funds available for eligible students to spend on qualifying expenses.

 

  1. Extends the termination date of phase-out grants from July 1, 2026, to July 1, 2029.  

 

This would not have an indeterminable fiscal impact in FY 2027 through FY 2029.  It will extend the phase-out expense an additional 3 years rather than the phase-out expense no longer being included as part of the program. The phase-out grant for FY 2023 was $643,938.89 and for FY 2024 was $887,840.

 

  1. Expands school funding to include the addition of each pupil who is participating in the EFA program, and who is enrolled in a school board approved public school academic courses in grades 7 through 12. Each pupil would count as an additional 0.15 pupil for each such academic course taken in public school.  It also removes the language that the Department shall only make grant payments for such pupils to the extent of available appropriations.  It further defines “public school” shall have the same meaning as standard school as defined in RSA 189:24.

 

As school year 2024 data isn't available to determine the impact on FY 2025, school year 2023 data was used as a proxy to determine the financial impact as this is the most recent available data. As demonstrated in the table below, expanding home educated student adequacy to grades 7 through 12 for school year 2023 would result in a $154,817.64 payment for FY 2025.

 

Fiscal Year

2025

School Year

2023

Grades

7-12

Total ADM

37.02

FY24 ADM Aid

$4,182.00

FY 2024 Payment

$154,817.64

 

If home education adequacy was guaranteed as this bill intends, the Department states districts may increase home education reporting consistency. This would result in an additional indeterminable fiscal impact increase.

 

There would also be an indeterminate increase in expanding student adequacy to public schools for EFA students in grades 7 through 12 taking individual courses in public schools, and therefore an indeterminable increase cost.

 

AGENCIES CONTACTED:

Department of Education

 

Amendments

Date Amendment
May 7, 2024 2024-1809s

Links


Date Body Type
Jan. 17, 2024 House Hearing
Jan. 30, 2024 House Exec Session
Jan. 31, 2024 House Exec Session
Jan. 30, 2024 House Floor Vote
April 16, 2024 Senate Hearing
May 16, 2024 Senate Floor Vote
May 15, 2024 Senate Floor Vote
May 16, 2024 Senate Floor Vote
May 23, 2024 Senate Floor Vote
June 13, 2024 Senate Floor Vote
June 13, 2024 Senate Floor Vote
June 13, 2024 House Floor Vote

Bill Text Revisions

HB1665 Revision: 42231 Date: June 4, 2024, 9:41 a.m.
HB1665 Revision: 41907 Date: May 7, 2024, 3:35 p.m.
HB1665 Revision: 40486 Date: Jan. 18, 2024, 4:26 p.m.
HB1665 Revision: 44757 Date: Oct. 23, 2023, 8:38 a.m.

Docket


June 13, 2024: Conference Committee Report 2024-2307c: Failed, RC 168-185 06/13/2024 HJ 16


June 13, 2024: Conference Committee Report # 2024-2307c; RC 14Y-10N, Adopted; 06/13/2024; SJ 17


June 6, 2024: Conference Committee Report Filed, # 2024-2307c; 06/13/2024


June 6, 2024: Conferee Change: Rep. Osborne Replaces Rep. Cornell 06/06/2024 HJ 15


June 6, 2024: Conference Committee Meeting: 06/06/2024 09:00 am LOB 205-207


June 5, 2024: Conferee Change; Senator Ward Replaces Senator Altschiller; SJ 17


June 5, 2024: Conference Committee Meeting: 06/05/2024 11:30 am LOB 206-208


June 4, 2024: Conferee Change; Senator Altschiller Replaces Senator Prentiss; SJ 17


June 4, 2024: Conference Committee Meeting: 06/04/2024 03:00 pm LOB 206-208


May 30, 2024: President Appoints: Senators Lang, Bradley, Prentiss; 05/30/2024; SJ 16


May 30, 2024: Sen. Ward Accedes to House Request for Committee of Conference, MA, VV; 05/30/2024; SJ 16


May 29, 2024: House Non-Concurs with Senate Amendment 2024-1809s and Requests CofC (Reps. Ladd, Cordelli, McDonnell, Cornell): MA VV 05/29/2024 HJ 14


May 22, 2024: Ought to Pass with Amendment 2024-1809s, RC 14Y-10N, MA; OT3rdg; 05/22/2024; SJ 14


May 22, 2024: Committee Amendment # 2024-1809s, AA, VV; 05/22/2024; SJ 14


May 16, 2024: Committee Report: Ought to Pass with Amendment # 2024-1809s, 05/22/2024, Vote 3-1; SJ 13


May 16, 2024: Special Order to next week, Without Objection, MA; 05/16/2024; SJ 13


May 16, 2024: Special Order to 05/16/2024, Without Objection, MA; 05/15/2024 SJ 12


May 7, 2024: Committee Report: Ought to Pass with Amendment #2024-1809s, 05/16/2024, Vote 3-1; SC 19


April 10, 2024: Hearing: 04/16/2024, Room 101, LOB, 09:20 am; SC 15


March 26, 2024: Introduced 03/21/2024 and Referred to Education; SJ 8


Feb. 8, 2024: Reconsider (Rep. Sweeney): MF RC 186-192 02/08/2024 HJ 4 P. 33


Feb. 8, 2024: Reconsider (Rep. Sweeney): MF RC 186-192 02/08/2024 HJ 4


Feb. 8, 2024: Referral Waived by Committee Chair per House Rule 47(f) 02/08/2024 HJ 4 P. 33


Feb. 8, 2024: Referred to Finance 02/08/2024 HJ 4 P. 31


Feb. 8, 2024: Ought to Pass: MA RC 190-189 02/08/2024 HJ 4 P. 29


Feb. 1, 2024: Committee Report: Without Recommendation 01/30/2024 (Vote 10-10; RC)


Jan. 25, 2024: ==CONTINUED== Executive Session: 01/31/2024 10:00 am LOB 205-207


Jan. 25, 2024: ==RECESSED== Executive Session: 01/30/2024 10:00 am LOB 205-207


Jan. 5, 2024: Public Hearing: 01/17/2024 02:30 pm LOB 205-207


Dec. 15, 2023: Introduced 01/03/2024 and referred to Education HJ 1