1 New Subparagraph; The State and Its Government; State Treasurer; Application of Receipts. Amend RSA 6:12, I(b) by inserting after subparagraph (410) the following new subparagraph:

(411) Moneys deposited in the school facility consolidation incentive fund established in RSA 21-N:15.

2 New Subdivision; School Facility Consolidation Incentive Fund. Amend RSA 21-N by inserting after section 13 the following new subdivision:

School Facility Consolidation Incentive Fund

21-N:14 Definitions. For the purpose of this subdivision:

I. "Department" means the department of education.

II. "Eligible applicant" means a public school district or group of districts, including cooperative school district or districts, that proposes to consolidate and close a school facility or facilities currently being operated for educational purposes to educate students.

III. "Consolidation project" means any activity that results in a measurable reduction in the number of facilities operated by the applicant, the establishment of tuition, or cooperative arrangements that reduce redundancy and improve student access to educational programs.

21-N:15 Fund Established. There is hereby established a fund to encourage, support, and provide financial assistance to public schools and school districts that close underutilized schools by facility consolidation and enter into tuition and cooperative agreements that increase educational opportunity and operational efficiency. The fund shall be known as the school facility consolidation incentive fund. The department shall administer the fund.

21-N:16 Grants Established.

I. The department may award grants from the school facility consolidation incentive fund to support projects that will result in a facility closure. An eligible school facility consolidation project award shall not exceed $1,500,000 per district in any fiscal year and may be used for the following:

(a) The planning, design, or implementation of consolidation projects;

(b) Facility closure and decommissioning;

(c) The establishment or expansion of tuition or cooperative agreements under RSA 194 and RSA 195;

(d) Transition costs, including transportation planning, technology alignment, or community engagement;

(e) Renovation costs;

(f) Per-pupil grant awards, to be distributed for up to 5 years, not to exceed an amount to be established by rule pursuant to RSA 541-A, to offset tuition costs associated with new or expanded tuition agreements as a result of consolidations and facilities closure; and

(g) Other costs approved by the commissioner that are directly related to improving efficiency and educational opportunity through consolidation.

II. Facilities closed upon receiving funds under this subdivision shall remain closed for at least 20 years. Any school or school district that violates this subdivision shall be required to repay the state the entirety of the grant moneys received. The commissioner may waive part or all of the penalty under this paragraph upon a showing of good cause by the school district or chartered public school.

21-N:17 Application Process.

I. The commissioner shall establish an application process for eligible entities to request grant funds under this subdivision.

II. Priority shall be given to applicants demonstrating:

(a) A facility utilization rate of less than 70 percent;

(b) Enrollment decline of 10 percent or more over the previous 5 years;

(c) Demonstrated cost savings or programmatic benefit from the proposed project;

(d) Districts with an operating cost per pupil, as determined by the department, that is 15 percent higher than the state average cost per pupil; and

(e) Districts with an equalized valuation per pupil above greater than 35 percent of the state median-equalized valuation per pupil.

III. The department may provide planning grants of up to $150,000 per applicant for feasibility or design studies and implementation grants of up to $1,500,000 per project.

21-N:18 Administration.

I. The commissioner shall establish an interagency review committee to review and recommend awards, to be composed of the commissioner and representatives from:

(a) The department of administrative services;

(b) The department of business and economic affairs;

(c) The governor, or designee; and

(d) The state fire marshal's office.

II. The commissioner may accept and expend gifts, grants, or federal funds to supplement the school facility consolidation incentive fund.

21-N:19 Rulemaking. The commissioner may adopt rules, pursuant to RSA 541-A, relative to the implementation, administration, and oversight of this subdivision.

3 New Paragraph; Education; School Building Aid; Grant for School Construction. Amend RSA 198:15-a by inserting after paragraph IV the following new paragraph:

IV-a. School building aid grant funds, pursuant to RSA 198:15-a, IV, shall include construction and renovation funding support for school building consolidation projects. The purpose of a school consolidation building grant award is to achieve long-term school district savings, efficient use of district resources, cutting operational, instructional, and administrative costs, and expanded educational opportunities by sharing staff, facilities, and access to curricular and co-curricular programs. As part of the school building aid program, an eligible consolidation project grant award shall be 50 percent of the department's approved project cost, provided that no public school consolidation grant award exceeds $1,500,000 in any fiscal year.

4 Education; School Building Aid; Grant for School Construction. Amend RSA 198:15-a, V to read as follows:

V. The department of education shall develop and maintain a 10-year school facilities plan of potential school building grant projects. Potential projects shall include, but not be limited to, criteria pursuant to RSA 198:15-c, II(b). The 10-year plan is intended to create a method to identify and enhance school facilities in a safe, healthy, and efficient manner while providing adequate learning environments for New Hampshire's students. The 10-year plan shall be updated every biennium to provide the department a summary of projects and school facility capital expenditures that are anticipated for the next 10 years. The plan shall identify new construction, renovation, and emergency projects, and describe the overall condition of projects contained in the plan. In support of the 10-year plan, it is recommended that each district have in place and provide the department a long-range capital improvement program that identifies school facility goals, provides projected expenditures, and outlines procedures and guidelines to be followed to accomplish goals. Each district is encouraged to review and update the district's anticipated school facility capital improvement plan on a 2-year recurring basis or as needed. The department shall use this information to better plan, prioritize, and project new anticipated capital construction and renovation expenditures relative to the state building aid program. The state board of education shall adopt rules pursuant to RSA 541-A relative to this paragraph .

5 New Subparagraph; Education; School Money; Education Trust Fund Created and Invested. Amend RSA 198:39, I by inserting after subparagraph (q) the following new subparagraph:

(r) To fund school facility consolidation incentive grants pursuant to RSA 21-N:15.

6 Department of Education; Appropriation. There is hereby appropriated to the department of education the sum of $10,000,000 for the fiscal year ending June 30, 2027 for the administration and distribution of school facility consolidation incentive fund grants under RSA 21-N:15. Such funds shall be nonlapsing and continually appropriated. Any earnings shall be added to the fund. Notwithstanding any provision of law to the contrary, the commissioner of the department of education is authorized to draw a warrant from the education trust fund to satisfy the state's obligation under this section upon approval from the joint fiscal committee of the general court, the governor, and the executive council.

7 Effective Date.

I. Section 3 of this act shall take effect July 1, 2027.

II. The remainder of this act shall take effect 60 days after its passage.

1 New Subparagraph; The State and Its Government; State Treasurer; Application of Receipts. Amend RSA 6:12, I(b) by inserting after subparagraph (410) the following new subparagraph:

(411) Moneys deposited in the school facility consolidation incentive fund established in RSA 21-N:15.

2 New Subdivision; School Facility Consolidation Incentive Fund. Amend RSA 21-N by inserting after section 13 the following new subdivision:

School Facility Consolidation Incentive Fund

21-N:14 Definitions. For the purpose of this subdivision:

I. "Department" means the department of education.

II. "Eligible applicant" means a public school district or group of districts, including cooperative school district or districts, that proposes to consolidate and close a school facility or facilities currently being operated for educational purposes to educate students.

III. "Consolidation project" means any activity that results in a measurable reduction in the number of facilities operated by the applicant, the establishment of tuition, or cooperative arrangements that reduce redundancy and improve student access to educational programs.

21-N:15 Fund Established. There is hereby established a fund to encourage, support, and provide financial assistance to public schools and school districts that close underutilized schools by facility consolidation and enter into tuition and cooperative agreements that increase educational opportunity and operational efficiency. The fund shall be known as the school facility consolidation incentive fund. The department shall administer the fund.

21-N:16 Grants Established.

I. The department may award grants from the school facility consolidation incentive fund to support projects that will result in a facility closure. An eligible school facility consolidation project award shall not exceed $1,500,000 per district in any fiscal year and may be used for the following:

(a) The planning, design, or implementation of consolidation projects;

(b) Facility closure and decommissioning;

(c) The establishment or expansion of tuition or cooperative agreements under RSA 194 and RSA 195;

(d) Transition costs, including transportation planning, technology alignment, or community engagement;

(e) Renovation costs;

(f) Per-pupil grant awards, to be distributed for up to 5 years, not to exceed an amount to be established by rule pursuant to RSA 541-A, to offset tuition costs associated with new or expanded tuition agreements as a result of consolidations and facilities closure; and

(g) Other costs approved by the commissioner that are directly related to improving efficiency and educational opportunity through consolidation.

II. Facilities closed upon receiving funds under this subdivision shall remain closed for at least 20 years. Any school or school district that violates this subdivision shall be required to repay the state the entirety of the grant moneys received. The commissioner may waive part or all of the penalty under this paragraph upon a showing of good cause by the school district or chartered public school.

21-N:17 Application Process.

I. The commissioner shall establish an application process for eligible entities to request grant funds under this subdivision.

II. Priority shall be given to applicants demonstrating:

(a) A facility utilization rate of less than 70 percent;

(b) Enrollment decline of 10 percent or more over the previous 5 years;

(c) Demonstrated cost savings or programmatic benefit from the proposed project;

(d) Districts with an operating cost per pupil, as determined by the department, that is 15 percent higher than the state average cost per pupil; and

(e) Districts with an equalized valuation per pupil above greater than 35 percent of the state median-equalized valuation per pupil.

III. The department may provide planning grants of up to $150,000 per applicant for feasibility or design studies and implementation grants of up to $1,500,000 per project.

21-N:18 Administration.

I. The commissioner shall establish an interagency review committee to review and recommend awards, to be composed of the commissioner and representatives from:

(a) The department of administrative services;

(b) The department of business and economic affairs;

(c) The governor, or designee; and

(d) The state fire marshal's office.

II. The commissioner may accept and expend gifts, grants, or federal funds to supplement the school facility consolidation incentive fund.

21-N:19 Rulemaking. The commissioner may adopt rules, pursuant to RSA 541-A, relative to the implementation, administration, and oversight of this subdivision.

3 New Paragraph; Education; School Building Aid; Grant for School Construction. Amend RSA 198:15-a by inserting after paragraph IV the following new paragraph:

IV-a. School building aid grant funds, pursuant to RSA 198:15-a, IV, shall include construction and renovation funding support for school building consolidation projects. The purpose of a school consolidation building grant award is to achieve long-term school district savings, efficient use of district resources, cutting operational, instructional, and administrative costs, and expanded educational opportunities by sharing staff, facilities, and access to curricular and co-curricular programs. As part of the school building aid program, an eligible consolidation project grant award shall be 50 percent of the department's approved project cost, provided that no public school consolidation grant award exceeds $1,500,000 in any fiscal year.

4 Education; School Building Aid; Grant for School Construction. Amend RSA 198:15-a, V to read as follows:

V. The department of education shall develop and maintain a 10-year school facilities plan of potential school building grant projects. Potential projects shall include, but not be limited to, criteria pursuant to RSA 198:15-c, II(b). The 10-year plan is intended to create a method to identify and enhance school facilities in a safe, healthy, and efficient manner while providing adequate learning environments for New Hampshire's students. The 10-year plan shall be updated every biennium to provide the department a summary of projects and school facility capital expenditures that are anticipated for the next 10 years. The plan shall identify new construction, renovation, and emergency projects, and describe the overall condition of projects contained in the plan. In support of the 10-year plan, each district shall have in place and provide the department a long-range capital improvement program that identifies school facility goals, provides projected expenditures, and outlines procedures and guidelines to be followed to accomplish goals. Each district shall review and update the district's anticipated school facility capital improvement plan on a 2-year recurring basis or as needed. The department shall use this information to better plan, prioritize, and project new anticipated capital construction , building consolidation, and renovation expenditures relative to the state building aid program. The state board of education shall adopt rules pursuant to RSA 541-A relative to this section .

5 New Subparagraph; Education; School Money; Education Trust Fund Created and Invested. Amend RSA 198:39, I by inserting after subparagraph (q) the following new subparagraph:

(r) To fund school facility consolidation incentive grants pursuant to RSA 21-N:15.

6 Department of Education; Appropriation. There is hereby appropriated to the department of education the sum of $10,000,000 for the fiscal year ending June 30, 2027 for the administration and distribution of school facility consolidation incentive fund grants under RSA 21-N:15. Such funds shall be nonlapsing and continually appropriated. Any earnings shall be added to the fund. Notwithstanding any provision of law to the contrary, the commissioner of the department of education is authorized to draw a warrant from the education trust fund to satisfy the state's obligation under this section upon approval from the joint fiscal committee of the general court, the governor, and the executive council.

7 Effective Date.

I. Section 3 of this act shall take effect July 1, 2027.

II. The remainder of this act shall take effect 60 days after its passage.