Revision: Jan. 9, 2023, 3:08 p.m.
HB 332-FN-A-LOCAL - AS INTRODUCED
2023 SESSION
23-0174
10/04
HOUSE BILL 332-FN-A-LOCAL
AN ACT relative to school building aid for eligible projects.
SPONSORS: Rep. M. Cahill, Rock. 10; Rep. Merchant, Sull. 6; Rep. Cloutier, Sull. 6; Sen. Altschiller, Dist 24; Sen. Perkins Kwoka, Dist 21
COMMITTEE: Finance
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ANALYSIS
This bill increases the amount to be appropriated by the legislature for school building aid construction and renovation projects of school districts. The bill also allocates a portion of funds to be paid for school building projects approved in prior years but which were not funded.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0174
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to school building aid for eligible projects.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 School Building Aid; Grants for School Construction. Amend RSA 198:15-a, IV to read as follows:
IV.(a) Beginning July 1, [2013] 2023, and every fiscal year thereafter, school building aid grants for construction or renovation projects approved by the department of education shall not [exceed $50,000,000] total less than $60,000,000 per fiscal year [less any] exclusive of appropriations for debt service payments owed [in the] for previous fiscal [year, unless otherwise provided by an act of the general court] years.
(b) Provided, that at least $5,000,000 per fiscal year of the total in subparagraph (a) shall be awarded to fund one-half of the building aid amount for projects that started construction between July 1, 2009 and June 30, 2019, which would have been eligible for building aid had funding been available for new projects. These projects shall submit a building aid application developed by the department of education and shall be awarded in the ranked order developed pursuant to RSA 198:15-c, II(a) and II(b).
(c) 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 School Building Aid; Alternative School Building Aid Grants. Amend RSA 198:15-w to read as follows:
198:15-w Alternative School Building Aid Grants; Procedures. The provisions of RSA 198:15-c through 198:15-h shall apply to any grant made under this subdivision. Provided that grants under RSA 198:15-a, IV(b) for approved alternative school building aid grant applications shall be calculated at 50 percent of the current applicable building aid grant amount pursuant to RSA 198:15-u through RSA 198:15-w for the school district, city, cooperative school district, joint maintenance agreement, or receiving district.
3 Effective Date. This act shall take effect July 1, 2023.
23-0174
1/4/23
HB 332-FN-A-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT relative to school building aid for eligible projects.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | $39,605,000 | $42,913,000 | $45,420,000 |
Funding Source: | [ X ] General [ X ] Education [ ] Highway [ ] Other | |||
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|
|
|
|
LOCAL: |
|
|
|
|
Revenue | $0 | $39,400,000 | $42,700,000 | $45,200,000 |
Expenditures | $0 | $0 | $0 | $0 |
METHODOLOGY:
This bill increases the state level for school building aid construction and renovation projects to not less than $60 million per fiscal year, exclusive of the appropriation for debt service payments, of which at least $5 million per fiscal year shall be awarded to fund construction or renovation cost for projects that started construction between July 1, 2009 and June 30, 2019, that would have been eligible for school building aid if the program had not been in moratorium (for the purposes of estimating the fiscal impact of this legislation, it is assumed that each of the projects on record would qualify for school building aid upon submittal of a building aid application). Under current law, school building aid, less any appropriation for debt service payments is limited to $50 million per fiscal year. Changing this current statutory cap to a floor would have the following estimated impact on state education trust fund expenditures and local school district revenue (amounts rounded):
| Minimum Building Aid Under This Bill | Current Minimum Building Aid | Increase |
FY24 | $60,000,000 | $20,600,000 | $39,400,000 |
FY25 | $60,000,000 | $17,300,000 | $42,700,000 |
FY26 | $60,000,000 | $14,800,000 | $45,200,000 |
To complete the additional work required to address the past projects completed during the moratorium, the Department states it would need to add two new positions: One (1) civil engineer V (labor grade 30) and one (1) business administrator IV (labor grade 29). The estimated total general fund cost for both positions is $205,000 in FY 2024, $213,000 in FY 2025, and $220,000 in FY 2026.
It should be noted that this bill provides no appropriation for school building aid, nor appropriation or authorization for new positions.
AGENCIES CONTACTED:
Department of Education