SB 442-FN - AS AMENDED BY THE SENATE
01/18/2024 0101s
04/05/2024 1414s
2024 SESSION
24-3061
02/05
SENATE BILL 442-FN
SPONSORS: Sen. Lang, Dist 2; Sen. Gray, Dist 6; Sen. Gendreau, Dist 1; Sen. Ward, Dist 8; Sen. Gannon, Dist 23; Sen. Abbas, Dist 22; Sen. Birdsell, Dist 19; Sen. Pearl, Dist 17; Sen. Avard, Dist 12; Sen. Carson, Dist 14; Sen. Innis, Dist 7; Sen. Murphy, Dist 16; Rep. Ladd, Graf. 5; Rep. A. Lekas, Hills. 38; Rep. Moffett, Merr. 4; Rep. Hill, Merr. 2
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
01/18/2024 0101s
04/05/2024 1414s 24-3061
02/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
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.
24-3061
Amended 1/22/24
SB 442-FN- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2024-0101s)
AN ACT relative to student eligibility for education freedom accounts.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures | $0 | Indeterminable | ||||
Funding Source(s) | Education Trust Fund | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
• 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 | Indeterminable | ||||
Local Expenditures | $0 | Indeterminable | ||||
METHODOLOGY:
This bill adds eligibility to the education freedom account (EFA) program for any student whose enrollment transfer request was denied pursuant to RSA 193:3 and exhausted all appeals granted in RSA 193:3. As of November 2023, 4,552 students were in the EFA program with an annualized cost estimated at $23.8 million with the typically grant averaging to be $5,235 per student. The current average education grant to public district schools is $6,217, which includes cost for an adequate education and extraordinary needs grant.
This bill could result in an indeterminable number of new students accessing the program. The following is information relative to the different situations in which a student may access the EFA program:
As students potentially leave traditional district schools and join the EFA program, districts may feel pressure to reduce their local expenditures to better fit the reduced population served. It is unknown the impact this would have on local expenditures, but this could potentially result in an indeterminable decrease.
AGENCIES CONTACTED:
Department of Education
| Date | Amendment |
|---|---|
| Jan. 11, 2024 | 2024-0101s |
| April 2, 2024 | 2024-1414s |
| Date | Body | Type |
|---|---|---|
| Jan. 4, 2024 | Senate | Hearing |
| Jan. 18, 2024 | Senate | Floor Vote |
| April 5, 2024 | Senate | Floor Vote |
| April 16, 2024 | House | Hearing |
| April 16, 2024 | House | Exec Session |
| April 16, 2024 | House | Floor Vote |
April 18, 2024: Committee Report: Inexpedient to Legislate 04/16/2024 (Vote 17-0; CC)
April 16, 2024: Executive Session: 04/16/2024 11:00 am LOB 205-207
April 11, 2024: Public Hearing: 04/16/2024 11:00 am LOB 205-207
April 10, 2024: Introduced (in recess of) 03/28/2024 and referred to Education HJ 11
April 5, 2024: Ought to Pass with Amendment 2024-1414s, RC 14Y-10N, MA; OT3rdg; 04/05/2024; SJ 8
April 5, 2024: Committee Amendment # 2024-1414s, AA, VV; 04/05/2024; SJ 8
April 2, 2024: Committee Report: Ought to Pass with Amendment # 2024-1414s, 04/05/2024, Vote 5-2; SC 13A
Jan. 18, 2024: Ought to Pass with Amendment 2024-0101s, RC 13Y-11N, MA; Refer to Finance Rule 4-5; 01/18/2024; SJ 2
Jan. 18, 2024: Without Objection, Sen. Birdsell Moved the Question, MA; 01/18/2024; SJ 2
Jan. 18, 2024: Committee Amendment # 2024-0101s, AA, VV; 01/18/2024; SJ 2
Jan. 11, 2024: Committee Report: Ought to Pass with Amendment # 2024-0101s, 01/18/2024, Vote ; SC 3
Dec. 14, 2023: Hearing: 01/04/2024, Room 101, LOB, 09:40 am; SC 48
Dec. 12, 2023: To Be Introduced 01/03/2024 and Referred to Education; SJ 1