Revision: Dec. 14, 2023, 8:40 a.m.
SB 552-FN - AS INTRODUCED
2024 SESSION
24-3087
10/02
SENATE BILL 552-FN
AN ACT relative to lapse of funds from the education trust fund.
SPONSORS: Sen. Soucy, Dist 18; Sen. Fenton, Dist 10; Sen. Rosenwald, Dist 13; Rep. Cornell, Hills. 22
COMMITTEE: Finance
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ANALYSIS
This bill requires that amounts which exceed $175 million in the education trust fund at the close of a fiscal year shall be transferred to a dedicated fund to be expended on teacher shortage and teacher retention programs. It also creates a legislative advisory group to provide advice and consent for the use of such funds.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-3087
10/02
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to lapse of funds from the education trust fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Education Trust Fund; Annual Lapse Amounts. Amend RSA 198:39, IV to read as follows:
IV. The education trust fund shall be nonlapsing, except that funds in excess of $175,000,000 at the close of each fiscal year shall be transfered to the teacher shortage and retention program fund established in RSA 21-N:8-e. The state treasurer shall invest that part of the fund which is not needed for immediate distribution in short-term interest-bearing investments. The income from these investments shall be returned to the fund.
2 New Section; Department of Education; Teacher Shortage and Retention Program Fund Established. Amend RSA 21-N by inserting after section 8-d the following new section:
21-N:8-e Teacher Shortage and Retention Program Fund.
I. There is established in the state treasury a nonlapsing and continually appropriated fund to be known as the teacher shortage and retention program fund which shall be kept distinct and separate from all other funds. The fund shall be administered by the commissioner of the department of education with the advice and consent of the legislative advisory group in paragraph III. The commissioner shall deposit into the fund the moneys required to be transferred pursuant to RSA 198:39, IV.
II. The moneys in the fund shall be expended by the department, with the advice and consent of the legislative advisory group, to be used exclusively for the administration of teacher shortage and teacher retention programs in this state.
III. There shall be a legislative advisory group to provide advice and consent for the use of funds in the teacher shortage and retention program fund. The legislative advisory group shall consist of the following members, who shall receive mileage at the legislative rate when attending to their duties and meet as needed for the administration of this section:
(a) Two members of the senate who serve on the senate education committee, one from the majority party and one from the minority party, appointed by the president of the senate.
(b) Four members of the house of representatives who serve on the house education committee, 2 from the majority party and 2 from the minority party, appointed by the speaker of the house of representatives.
3 New Subparagraph; Application of Receipts; Dedicated Fund; Teacher Shortage and Retention Program Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (394) the following new subparagraph:
(395) Moneys transferred into the teacher shortage and retention program fund established in RSA 21-N:8-e.
4 Effective Date. This act shall take effect June 30, 2024.
24-3087
12/6/23
SB 552-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to lapse of funds from the education trust fund.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | Transfers to Teacher Shortage and Retention Fund - $8.873M in FY 2024, $48.415M in FY 2025, and Indeterminable in FY 2026 and Beyond
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Revenue Fund(s) | Teacher Shortage and Retention Fund | |||||
Expenditures | Transfers from Education Trust Fund - $8.873M in FY 2024, $48.415M in FY 2025, and Indeterminable in FY 2026 and Beyond
Teacher Shortage and Retention Program - Indeterminable Increase Beginning in FY 2025 | |||||
Funding Source(s) | Education Trust Fund Teacher Shortage and Retention Program Fund | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None (See Below) | |||||
• 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 | ||||||
METHODOLOGY:
This bill requires that amounts which exceed $175 million in the education trust fund at the close of each fiscal year, beginning in FY 2024, shall be transferred to a newly established “teacher shortage and retention program fund”. This fund would be administered by the Department of Education, and with advice and consent of a newly established legislative advisory group made up of two members of the Senate and two members of the House of Representatives, would be used exclusively for the administration of teacher shortage and teacher retention programs in the State. While it is unknown how much may be expended in each fiscal year, based on legislative estimates derived during the 2023 session, this bill would result in transfers from the education trust fund to the new program’s fund of $8,873,000 in FY 2024 and $48,415,000 in FY 2025 (actual amounts will depend on education trust fund revenue and expenditure activity in each fiscal year).
| FY 2024 | FY 2025 |
Education Trust Fund Comparative Statement of Fund Balance, June 30 | $183,873,000 | $232,288,000 |
(Less Previous Year Transfer Under This Bill) | N/A | ($8,873,000) |
Net Estimated Ending Balance, June 30 | $183,873,000 | $223,415,000 |
Bill's Transfer Threshold | $175,000,000 | $175,000,000 |
Estimated Education Trust Fund Transfer to Teacher Shortage/Retention Fund | $8,873,000 | $48,415,000 |
It is unknown at this time how much, and in each fiscal year, may be expended from the teacher shortage and retention program fund. Also, it is unclear if expenditures from the fund would need to be authorized through the state budget process (or other legislation) as there is no appropriation authority for the dedicated fund included in this bill. Lastly, it is unknown at this time if the Department will need additional staffing to administer this program.
AGENCIES CONTACTED:
Department of Education