HB 771-FN - AS INTRODUCED
2025 SESSION
25-0788
07/02
HOUSE BILL 771-FN
AN ACT relative to funding for open enrollment schools.
SPONSORS: Rep. Peternel, Carr. 6; Rep. Ladd, Graf. 5; Rep. Terry, Belk. 7; Rep. Verville, Rock. 2; Sen. Rochefort, Dist 1
COMMITTEE: Education Funding
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ANALYSIS
This bill:
I. Changes how funding for open enrollment schools is sent and received.
II. Requires school districts to establish a line item in their operating budgets that reflects expenditures for open enrollment tuition costs.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0788
07/02
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACT relative to funding for open enrollment schools.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Education; Open Enrollment Schools; Definitions. Amend RSA 194-D:1, I to read as follows:
I. "Open enrollment public school", [or] "open enrollment school", or "open enrollment program" means any public school which, in addition to providing educational services to pupils residing within its attendance area or district, chooses to accept pupils from other attendance areas within its district and from outside its district.
2 Education; Open Enrollment Schools; Funding. Amend RSA 194-D:5 to read as follows:
194-D:5 Funding.
I. There shall be no tuition charge for any pupil attending an open enrollment school located in that pupil's resident district. For an open enrollment school authorized by a receiving [the] school district, the pupil's sending [resident] district shall pay the receiving district [to such school] an amount equal to not less than 80 percent of the sending [that] district's average cost per pupil as determined by the department of education using the most recent available data as reported by the sending district to the department.
II. In accordance with current department of education standards, the funding and educational decision-making process for children with disabilities attending a chartered public or open enrollment school shall be the responsibility of the school district and shall retain all current options available to the parent and to the school district.
[III. Any federal or other funding available in any year to a sending district shall, to the extent and in a manner acceptable to the funding source, be directed to an open enrollment school in a receiving district on an eligible per pupil basis.]
III. [IV.] The commissioner of the department of education shall apply for all federal funding available to open enrollment schools [under the No Child Left Behind Act, Title I of the Elementary and Secondary Education Act,] or other federal [source] sources of funds. The commissioner shall expend any such funds received in a manner acceptable to the funding source.
IV. [V.] A sending district may provide funds, services, equipment, materials, or personnel to an open enrollment school, in addition to the amounts specified in this section in accordance with the policies of the sending school district.
V. [VI.] An open enrollment school may accept pupils at tuition rates at less than the amounts established by this chapter.
VI. [VII.] An open enrollment school may receive financial aid, private gifts, grants, or revenue as if it were a school district.
3 Education; Open Enrollment Schools; Budgets. Amend RSA 194-D:6 to read as follows:
194-D:6 Budgets. Each school district shall establish a line item in their operating budget, on an annual basis, reflecting estimated expenditures for open enrollment school tuition [That portion of a school district's estimated expenditures on open enrollment school tuition shall be shown as a separate line item in a school district's budget].
4 Effective Date. This act shall take effect 60 days after its passage.
25-0788
Revised 1/27/25
HB 771-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to funding for open enrollment schools.
FISCAL IMPACT:
|
| |||||
Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | Indeterminable | ||||
Funding Source(s) | General Fund and Education Trust Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
| ||||||
Estimated Political Subdivision Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Local Revenue | $0 | Indeterminable | ||||
Local Expenditures | $0 | Indeterminable | ||||
METHODOLOGY:
This bill allows for open enrollments programs in addition to open enrollment schools, further specifies the funding mechanisms between two school districts, and requires a school district to budget for open enrollment schools. Currently, the Department of Education is aware of one (1) locally approved and active open enrollment school in the state and states it is unknown if this bill would increase the availability and student participation in open-enrollment schools over current law. To the extent this bill results in more participation, any currently enrolled district student switching to an open enrollment school is assumed to have a net neutral fiscal impact to the state and local district. However, the Department states it will create a downward pressure on the cost per pupil of education as the resident district will retain 20% of the district average cost per pupil with no educational responsibility for that student and the receiving district will agree to educate the student for only 80% of the average cost per pupil. Any student not currently enrolled in a publicly funded educational pathway and moves into an open enrollment school or program, could result in a potential increase to state adequacy expenditures and local school district expenditures. Ultimately, this bill’s impact on state aid expenditures, and local school district revenue and expenditures, is indeterminable.
AGENCIES CONTACTED:
Department of Education
| Date | Body | Type |
|---|---|---|
| Feb. 7, 2025 | House | Hearing |
| Feb. 18, 2025 | House | Exec Session |
| Feb. 18, 2025 | House | Floor Vote |
| April 25, 2025 | Senate | Hearing |
| April 17, 2025 | Senate | Hearing |
April 9, 2025: Hearing: 04/17/2025, Room 103, SH, 01:20 pm; SC 17
April 9, 2025: ==CANCELLED== Hearing: 04/25/2025, Room 100, SH, 09:20 am; SC 17
April 4, 2025: Hearing: 04/25/2025, Room 100, SH, 09:20 am; SC 17
March 12, 2025: Introduced 03/06/2025 and Referred to Education Finance; SJ 7
March 6, 2025: Referral Waived by Committee Chair per House Rule 47(f) 03/06/2025 HJ 7 P. 46
March 6, 2025: Referred to Finance 03/06/2025 HJ 7 P. 37
March 6, 2025: Ought to Pass: MA RC 205-169 03/06/2025 HJ 7 P. 35
Feb. 25, 2025: Minority Committee Report: Inexpedient to Legislate
Feb. 25, 2025: Majority Committee Report: Ought to Pass 02/18/2025 (Vote 10-8; RC) HC 14 P. 20
Feb. 12, 2025: Executive Session: 02/18/2025 10:30 am LOB 205-207
Jan. 29, 2025: Public Hearing: 02/07/2025 01:00 pm LOB 205-207
Jan. 23, 2025: Introduced (in recess of) 01/09/2025 and referred to Education Funding HJ 3 P. 26