Bill Text: NH SB183 | 2011 | Regular Session | Amended
Bill Title: Amending the calculation and distribution of adequate education grants, repealing fiscal capacity disparity aid, and providing stabilization grants to certain municipalities.
Spectrum: Partisan Bill (Republican 13-0)
Status: (Engrossed - Dead) 2011-06-08 - House House Refuses to Accede to Senate Request for C of C (Rep L.Ober): Motion Adopted Voice Vote; House Journal 51, PG.1722 [SB183 Detail]
Download: New_Hampshire-2011-SB183-Amended.html
SB 183-FN-LOCAL – AS AMENDED BY THE HOUSE
1June2011… 1982h
2011 SESSION
04/09
SENATE BILL 183-FN-LOCAL
AN ACT relative to the calculation and distribution of adequate education grants.
SPONSORS: Sen. Rausch, Dist 19; Sen. Stiles, Dist 24; Sen. Bradley, Dist 3; Sen. Carson, Dist 14; Sen. Sanborn, Dist 7; Sen. Bragdon, Dist 11; Sen. Luther, Dist 12; Sen. Gallus, Dist 1; Rep. Boehm, Hills 27; Rep. Bolster, Belk 5; Rep. Fleck, Carr 5; Rep. Chandler, Carr 1; Rep. Weyler, Rock 8
This bill:
I. Determines the per pupil cost of the opportunity for an adequate education which includes aid distributed to schools based on the number of pupils eligible to receive special education, or eligible for a free or reduced-price lunch, or who are English language learners.
II. Provides fiscal capacity disparity aid, in addition to aid for the cost of the opportunity for an adequate education, based on a municipality’s equalized valuation, including utilities, per pupil and median family income.
III. Provides that for the biennium ending June 30, 2013, no municipality shall receive an adequate education grant in a fiscal year which is greater than the adequate education grant received in the 2011 fiscal year.
IV. Requires a municipality which is scheduled to receive an adequate education grant in a fiscal year which is less than the grant such municipality received in the 2011 fiscal year to receive an additional grant from the education trust fund in an amount equal to 100 percent of the amount of the decrease.
V. Provides that beginning July 1, 2013, a municipality’s total education grant shall not exceed 105.5 percent of the total education grant received in the preceding fiscal year.
VI. Provides additional funds for each third grade pupil who has tested at the proficient level or above in the reading component of the state assessment and who is not eligible to receive special education, English as a second language, or free or reduced-price meal program funds and authorizes a reduction of funds for each such pupil who does not test at the proficient level or above in the reading component of the state assessment.
VII. Repeals the statutory provisions requiring that excess education tax payments be remitted to the department of revenue administration thereby permitting municipalities to retain any excess education tax revenues.
VIII. Establishes a joint legislative oversight committee on accountability for an adequate education.
IX. Provides that the state shall pay the greater of $5,450 or the sum of $2,000 plus the amount calculated under RSA 198:40-a to chartered public school pupils.
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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.
1June2011… 1982h
11-1029
04/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to the calculation and distribution of adequate education grants.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Statement of Purpose.
I. The general court is committed to providing the opportunity for an adequate education for all public school students, as established in this act, based upon the 2007 Laws of New Hampshire, chapter 270. Methodologies for costing, determination of resources, and elements of cost are included in this act.
II. The individual components of the cost were selected on the basis of their effectiveness in delivering educational opportunity and after extensive review, debate, and discussion, including review of the report of the joint legislative oversight committee on costing an adequate education. The legislative process consisted of obtaining information from professional educators, government officials, education policy and finance experts, and the public on the establishment of the cost of an adequate education.
III. The cost of delivering this educational opportunity consists of several elements. The base cost represents the per pupil resources necessary to provide an adequate education where no additional aid is necessary to cover the increased costs of providing that opportunity to students who have special education needs, who have limited English language proficiency, or who are economically disadvantaged. The base cost represents the costs attributable only to the subset of education that is included in the definition in RSA 193-E:2-a.
IV. In calculating the base cost, the general court adhered to and adopted the standards for the professional positions referred to in the costing formula as specified or necessarily implied in the minimum standards for public school approval adopted by the state department of education and in effect on July 1, 2010. These standards incorporate and include the definition of a “highly qualified” teachers under federal law. The professional-to-student ratios used in the costing formula were also derived from the state minimum standards for public school approval. All costing elements were derived from actual, empirical data.
V. The general court further finds that additional aid, referred to as differentiated aid, is also required to provide this educational opportunity for certain students. This act allocates such differentiated aid to special education students, English language learners, and economically disadvantaged students, the latter category based upon eligibility for federally-provided free and reduced-price lunch programs and the concentration of such eligible students in a school.
VI. In determining the need for differentiated aid in addition to providing the base cost for an adequate education, the general court recognizes that the resources needed to provide this educational opportunity are not the same for all students.
VII. The general court recognizes that special education students face unique challenges that require educational support and instructional resources in addition to those provided by the base cost. After reviewing the findings of the joint legislative oversight committee and conducting its own inquiry into forms of special education funding and the laws relevant to such funding mechanisms, the general court finds that each special education student should receive additional funding above the base cost. This per pupil amount is not dependent upon a student's level of disability or learning environment because the general court wishes to encourage the placement of special education students in the least restrictive learning environment possible.
VIII. After reviewing the findings of the legislative oversight committee, including its survey of services provided to English language learners throughout the country and in New Hampshire, the general court finds that additional funding is required to provide English language learners with the opportunity for an adequate education. Accordingly, the general court finds that an amount should be distributed to each pupil receiving English language instruction in a district. This supplemental amount is based upon providing one teacher per 70 students receiving English language instruction and is inline with funding provided throughout the United States to English language learners.
IX. The joint legislative oversight committee recognized that economically disadvantaged students require supplemental funding in addition to the base cost amount. During its deliberations, the committee heard testimony and thoroughly reviewed studies, research, and data about the challenges that school districts face when educating economically disadvantaged students as well as the costs and considerations involved in implementing programs designed to overcome those obstacles. The general court finds it necessary to provide additional aid to economically disadvantaged pupils in schools with significant concentrations of economically disadvantaged pupils to provide them with the opportunity for an adequate education. Based upon credible evidence received by, and the discussion of the joint legislative oversight committee on costing an adequate education in January 25, 2008, the general court concludes that such additional aid should be provided to disadvantaged students only when the concentration of such students in a school exceeds 12 percent. This level is less than one-half of the threshold concentration of 25 percent of such pupils in a school recommended by Management Analysis & Planning, Inc. in its October 5, 2000 report, p. 40.
X. The general court recognizes that certain communities lack the relative wealth and fiscal capacity to fund local education to the extent desired by those communities. For this reason, the general court finds it appropriate to provide money above the cost of delivering adequate educational opportunity based upon the fiscal capacity and relative need of certain communities.
XI. This act is not intended to stand in isolation from the other statutes and rules relating to educating New Hampshire students as required by state and federal law.
XII. This act maintains state funding for the delivery of educational opportunity at the same level as provided in fiscal years 2010 and 2011, and at a slightly higher overall average per pupil level than in those years.
2 Adequate Education; Definitions. RSA 198:38 is repealed and reenacted to read as follows:
198:38 Definitions. In this subdivision:
I. “Average daily membership in attendance” or “ADMA” means the aggregate half-day membership of pupils in kindergarten through grade 12 attending schools operated by a school district divided by the number of half-days of instruction offered. The average daily membership in attendance shall include any pupil who is a resident of New Hampshire educated at public expense, including any pupil whose school district provides his or her education through a private or out-of-district placement.
II. “Average daily membership in residence” or “ADMR” means the average daily membership in residence of pupils in kindergarten through grade 12, as defined in RSA 189:1-d, IV of the second school year preceding the year in which the calculation is made, provided that no kindergarten pupil shall count as more than 1/2 day attendance per calendar year.
III. “Commissioner” means the commissioner of the department of education.
IV. “Department” means the department of education.
V. “Determination year” means the fiscal year that was 3 years prior to the fiscal year for which aid is to be determined. Unless otherwise indicated, determination year data shall be used to calculate aid.
VI. “Educationally disabled child” or “educationally disabled pupil” shall mean “child with a disability” as defined in RSA 186-C:2, I.
VII. “English language learner” means a child who has a predominant language other than English or who is educationally disadvantaged by a limited English proficiency, and who is receiving regularly scheduled English language instruction.
VIII. “Pupils eligible for a free or reduced-price meal” means pupils in kindergarten through grade 12 who are eligible for the federal free or reduced-price meal program.
IX. “School district” means school district as defined in RSA 194:1 and shall include cooperative school districts as defined in RSA 195:1, I.
3 Adequate Education; Base Cost Per Pupil. RSA 198:40-a is repealed and reenacted to read as follows:
198:40-a Adequate Education; Base Cost Per Pupil.
I. For the biennium beginning July 1, 2011 only, the commissioner shall determine the base cost per pupil of the opportunity for an adequate education in each school district using the most recent statewide salary data available, divided into quartiles, as follows:
(a)(1) The average of the 3rd and 4th quartiles of salary for a teacher possessing at least a bachelor’s degree with no experience, multiplied by 1.33, then multiply the product by 1.05.
(2) For a teacher teaching art, music, world languages, media/technology, health, or physical education, multiply the amount determined under subparagraph (a)(1) by .20.
(b) The average of the 3rd and 4th quartiles of salary for a principal possessing at least a master’s degree and 3 years of educator experience, multiplied by 1.33, then multiply the product by 1.05.
(c) The average of the 3rd and 4th quartiles of salary for a guidance counselor possessing at least a master’s degree, multiplied by 1.33, then multiply the product by 1.05.
(d) The average of the 3rd and 4th quartiles of salary for a library/media specialist possessing at least a bachelor’s degree with no experience, multiplied by 1.33, then multiply the product by 1.05.
(e) The average of the 3rd and 4th quartiles of salary for a technology coordinator possessing at least a bachelor’s degree with no experience, multiplied by 1.33, then multiply the product by 1.05.
(f) The average of the 3rd and 4th quartiles of salary for a reading specialist possessing at least a master’s degree at step 2 of the teacher salary schedule for that position, multiplied by 1.33, then multiply the product by 1.05.
(g) The average of the 3rd and 4th quartiles of salary for an administrative assistant, multiplied by 1.33, then multiply the product by 1.05.
(h) The average of the 3rd and 4th quartiles of salary for a custodian, multiplied by 1.33, then multiply the product by 1.05.
II. For the biennium beginning July 1, 2011 only, the commissioner shall calculate the base cost per pupil of the opportunity for an adequate education in each school district as the sum of the following:
(a)(1) For teachers of pupils in kindergarten through grade 2, divide the ADMR of pupils in the municipality in kindergarten through grade 2 by 25, then multiply the result by the salary for teachers determined in subparagraph I(a)(1).
(2) For teachers of pupils in grades 3 through 12, divide the ADMR of pupils in the municipality in grades 3 through 12 by 30, then multiply the result by the salary for teachers determined in subparagraph I(a)(1).
(3) For a teacher teaching art, music, world languages, media/technology, health, or physical education to pupils in kindergarten through grade 2, divide the ADMR of pupils in the municipality in kindergarten through grade 2 by 25, then multiply the result by the amount determined in subparagraph I(a)(2).
(4) For a teacher teaching art, music, world languages, media/technology, health, or physical education to pupils in grades 3 through 12, divide the ADMR of pupils in the municipality in grades 3 through 12 by 30, then multiply the result by the amount determined in subparagraph I(a)(2).
(b) For principals, divide the ADMR of pupils in the municipality in kindergarten through grade 12 by 500, then multiply the result by the salary for principals determined in subparagraph I(b).
(c)(1) For guidance counselors for pupils in kindergarten through grade 8, divide the ADMR of pupils in the municipality in kindergarten through grade 8 by 500, then multiply the result by the salary for guidance counselors determined in subparagraph I(c).
(2) For guidance counselors for pupils in grades 9 through 12, divide the ADMR of pupils in the municipality in grades 9 through 12 by 300, then multiply the result by the salary for guidance counselors determined in subparagraph I(c).
(d) For library/media specialists, divide the ADMR of pupils in the municipality in kindergarten through grade 12 by 500, then multiply the result by the salary for library/media specialists determined in subparagraph I(d).
(e) For technology coordinators, divide the ADMR of pupils in the municipality in kindergarten through grade 12 by 1,200, then multiply the result by the salary for technology coordinators determined in subparagraph I(e).
(f) For reading specialists, divide the ADMR of pupils in the municipality in kindergarten through grade 8 by 500, then multiply the result by the salary for reading specialists determined in subparagraph I(f).
(g) For administrative assistants, divide the ADMR of pupils in the municipality in kindergarten through grade 12 by 500, then multiply this amount by the salary for administrative assistants determined in subparagraph I(g).
(h) For custodians, divide the ADMR of pupils in the municipality in kindergarten through grade 12 by 500, then multiply this amount by the salary for custodians determined in subparagraph I(h).
(i) For instructional materials, multiply the ADMR of pupils in the municipality in kindergarten through grade 12 by $130.
(j)(1) For technology costs for pupils in kindergarten through grade 8, multiply the ADMR of pupils in the municipality in kindergarten through grade 8 by $25.
(2) For technology costs for pupils in grades 9 through 12, multiply the ADMR of pupils in the municipality in grades 9 through 12 by $65.
(k) For transportation costs, multiply the ADMR of pupils in the municipality in kindergarten through grade 8 by $304.
III. In addition to the base cost calculated under paragraphs I and II:
(a) An additional $1,770 for each pupil who is in kindergarten through grade 12, who is eligible for the federal free and reduced-price meal program, and who attends a public school in which at least 12 percent of pupils reported in the school’s ADMR in the determination year are eligible for the federal free and reduced-price meal program.
(b) An additional $600 for each pupil reported in the public school's ADMR in the determination year who is an English language learner and who is receiving English language instruction.
(c) An additional $1,904 for each pupil reported in the public school's ADMR in the determination year who is receiving special education.
(d) To encourage early literacy and provide accountability to local school districts, for each third grade pupil in the public school’s ADMA in the determination year who is not eligible to receive special education, English language learners, or federal free or reduced-price meal program funds in the determination year, a school district shall:
(1) Receive an additional $100 for each such pupil who has tested at the proficient level or above in the reading component of the state assessment; and
(2) Incur a reduction of $100 for each such pupil who has not tested at the proficient level or above in the reading component of the state assessment; provided that
(3) The net amount of any additions or reductions under this subparagraph shall not be less than zero.
IV.(a) The sum total calculated under paragraphs I-III of this section shall be the cost of the opportunity for an adequate education in each year of the biennium ending June 30, 2013.
(b) Prior to or coinciding with the first disbursement of each fiscal year under RSA 198:42, the department shall notify a school district of the total amount of funds that have been allocated for each school within its jurisdiction during the fiscal year based on the sum of the school district’s adequate education grant amount plus the amount available to the school district from the education tax. In addition, the department shall furnish to each municipality a report showing the municipality’s cost of an adequate education sorted by a pupil’s municipality of residence.
V. The department shall notify school districts of the estimated amounts of grants by the November 15 preceding the fiscal year for which aid is determined. The commissioner shall provide to the general court all data or reports requested by the general court in a form which the general court determines will facilitate the calculations required in this section.
4 Adequate Education; Provisions for Grants to Municipalities. RSA 198:40-b is repealed and reenacted to read as follows:
198:40-b Provisions for Grants to Municipalities.
I. For the biennium ending June 30, 2013, no municipality shall receive a total education grant in a fiscal year which is greater than the total education grant received in the fiscal year ending June 30, 2011.
II. Each fiscal year, the commissioner of the department of education shall determine if a municipality is scheduled to receive a total education grant which is less than the total education grant received in the fiscal year ending June 30, 2011, and shall disburse to such municipality an additional grant from the education trust fund in an amount equal to 100 percent of the amount of the decrease.
III. Beginning July 1, 2013, and each fiscal year thereafter, the department of education shall not distribute a total education grant on behalf of all pupils who reside in a municipality that exceeds 105.5 percent of the total education grant distributed to such municipality in the previous fiscal year.
5 Adequate Education; Provisions for Grants to Municipalities; Version Effective July 1, 2013. RSA 198:40-b is repealed and reenacted to read as follows:
198:40-b Provisions for Grants to Municipalities. Each fiscal year, the commissioner of the department of education shall determine if a municipality is scheduled to receive a total education grant which is less than the total education grant received in the fiscal year ending June 30, 2011, and shall disburse to such municipality an additional grant from the education trust fund in an amount equal to 100 percent of the amount of the decrease.
6 Adequate Education; Fiscal Capacity Disparity Aid. RSA 198:40-c is repealed and reenacted to read as follows:
198:40-c Fiscal Capacity Disparity Aid.
I. In addition to aid for the cost of the opportunity for an adequate education provided under RSA 198:40-a, each fiscal year the department shall provide fiscal capacity disparity aid to a municipality’s school districts as follows:
(a) The department of revenue administration shall calculate the equalized valuation per pupil for each municipality in the state and shall sort the results into quartiles based on equalized valuation per pupil. The quartile containing municipalities with the lowest equalized valuation per pupil shall then be divided in half.
(b) A municipality with an equalized valuation per pupil in the lower half of the lowest quartile and which has a median family income which is less than the state average median family income shall receive fiscal capacity disparity aid in the amount of $3,360 multiplied by the municipality’s average daily membership in residence.
(c) A municipality with an equalized valuation per pupil in the upper half of the lowest quartile which has a median family income which is less than the state average median family income shall receive fiscal capacity disparity aid in the amount of $2,100 multiplied by the municipality’s average daily membership in residence.
II. Aid under this section shall be distributed pursuant to RSA 198:42.
III. In this section:
(a) “Equalized valuation per pupil” means a municipality’s equalized valuation, including properties subject to taxation under RSA 82 and RSA 83-F, as determined by the department of revenue administration, that was the basis for the local tax assessment in the determination year, divided by the school district’s average daily membership in residence, as defined in RSA 189:1-d for the determination year, provided that no kindergarten pupil shall count as more than ˝ day attendance per calendar day.
(b) “Median family income” means the most recent census data published for New Hampshire counties and municipalities by the United States Census Bureau, United States Department of Commerce, as of October 1 preceding the beginning of the biennium for which aid is to be determined.
7 Adequate Education; Consumer Price Index Adjustment. Amend RSA 198:40-d to read as follows:
198:40-d Consumer Price Index Adjustment. Beginning July 1, [2011] 2013 and every biennium thereafter, the department of education shall adjust the sum of the amounts determined under RSA 198:40-a based on the average change in the Consumer Price Index for All Urban Consumers, Northeast Region, using the “services less medical care services” special aggregate index, as published by the Bureau of Labor Statistics, United States Department of Labor. The average change shall be calculated using the 3 calendar years ending 18 months before the beginning of the biennium for which the calculation is to be performed.
8 Adequate Education; Determination of Grants; Excess Tax. Amend the section heading in RSA 198:41 and RSA 198:41, I-II to read as follows:
198:41 Determination of Education Grants [and Excess Tax].
I. Except for municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the amount of the total education grant for the municipality as follows:
(a) Add the per pupil cost of providing the opportunity for an adequate education for which each pupil is eligible pursuant to RSA 198:40-a, I-III, and from such amount;
(b) Subtract the amount of the education [property] tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year, and from such amount; and
(c) Add the fiscal capacity disparity aid pursuant to RSA 198:40-c.
II. For municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the amount of the [adequate] total education grant for each municipality as the lesser of the 2 following calculations:
(a) The amount calculated in accordance with paragraph I of this section; or
(b) The total amount paid for items of current education expense as determined by the department of education minus the amount of the education [property] tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year.
9 Excess Education Property Tax Payment; Subdivision Heading Amended. Amend the subdivision heading preceding RSA 198:46 to read as follows:
[Excess Education Property Tax Payment]
Local Control and Alternative Kindergarten Programs
10 Application of Receipts. Amend RSA 6:12, I(b)(65) to read as follows:
(65) Money received under RSA 77-A, RSA 77-E, RSA 78, RSA 78-A, RSA 78-B, RSA 83-F, [RSA 198:46,] and from the sweepstakes fund, which shall be credited to the education trust fund under RSA 198:39.
11 Commissioner’s Warrant. Amend RSA 76:8, II to read as follows:
II. The commissioner shall issue a warrant under the commissioner’s hand and official seal for the amount computed in paragraph I to the selectmen or assessors of each municipality by December 15 directing them to assess such sum and pay it to the municipality for the use of the school district or districts [and, if there is an excess education tax payment due pursuant to RSA 198:46, directing them to assess the amount of the excess payment and pay it to the department of revenue administration for deposit in the education trust fund]. Such sums shall be assessed at such times as may be prescribed for other taxes assessed by such selectmen or assessors of the municipality.
12 Joint Legislative Oversight Committee on Accountability for an Adequate Education.
I.(a) There is hereby established the joint legislative oversight committee on accountability for an adequate education. The members of the committee shall be as follows:
(1) Three members of the house of representatives, which shall include 2 members of the house education committee and one member of the house finance committee, appointed by the speaker of the house of representatives.
(2) Three members of the senate, which shall include 2 members of the senate education committee and one member of the senate finance committee, appointed by the president of the senate.
(b) Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.
II. The committee shall review and study the assessment and assistance methods, reporting requirements, and other methods of accountability presently being used by the department of education and local school districts to determine whether such methods, programs, and standards will ensure the delivery of an adequate education as set forth in RSA 193-E:2-a.
III. Following a public hearing, the committee shall report its findings and recommendations concerning the sufficiency of existing statutory law to provide accountability for the delivery of the opportunity for an adequate education as defined in RSA 193-E:2-a, and the possible need for additional legislation, to the governor, the speaker of the house of representatives, the president of the senate, and the state librarian no later than November 15, 2011.
13 Chartered Public Schools; Funding. Amend RSA 194-B:11, I(b) to read as follows:
(b) For any chartered public school authorized by the state board of education pursuant to RSA 194-B:3-a, the state shall pay [tuition] the greater of $5,450 or the sum of $2,000 plus the amount calculated pursuant to RSA 198:40-a [and RSA 198:40-c] directly to the chartered public school for each pupil who is a resident of this state in attendance at such chartered public school.
14 References Amended. Amend the following RSA sections by replacing “statewide education property tax” or “education property tax” or “education property taxes” with “education tax” or “education taxes,” as the context dictates: RSA 76:8, I; the introductory paragraph in RSA 198:57, IV, and RSA 198:57, VI(a).
15 Repeal. The following are repealed:
I. RSA 198:46, relative to excess education tax payments.
II. RSA 198:47, relative to forms used for the reporting and remitting of excess education tax payments.
III. RSA 198:39, I(g), relative to excess education tax payments deposited into the education trust fund.
16 Severability. If any provision in sections 1-11 of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of such sections which can be given effect without the invalid provision or application, and to this end the provisions of such sections are declared to be severable.
17 Effective Date.
I. Section 5 of this act shall take effect July 1, 2013.
II. The remainder of this act shall take effect July 1, 2011 at 12:01 a.m.
LBAO
11-1029
Revised 02/17/11
SB 183 FISCAL NOTE
AN ACT amending the calculation and distribution of adequate education grants, repealing fiscal capacity disparity aid, and providing stabilization grants to certain municipalities.
FISCAL IMPACT:
The Department of Education states this bill will decrease state education trust fund revenue and increase local revenue by $16,977,637 in FY 2012 and 2013, and by an indeterminable amount in FY 2014 and FY 2015. This bill would decrease state education trust fund expenditures and decrease local revenue by $86,599,278 in FY 2012 and FY 2013, and by an indeterminable amount in FY 2014 and FY 2015. There will be no fiscal impact on county and local expenditures, or county revenue.
METHODOLOGY:
The Department of Education states this bill makes changes to the determination of the per pupil cost of the opportunity of an adequate education. The bill sets the amount of differentiated aid at $1,725 for each pupil eligible for the free or reduced-price meal program; repeals the calculation and distribution of fiscal disparity aid; provides a grant in the amount of $2,000 for chartered public school pupils; provides $675 for each third grade pupil who has not tested at the proficient level or above in the reading component of the state assessment, and is not eligible to receive special education, English as a second language, or free or reduced-price meal program funds. Beginning July 1, 2013, this bill provides that a municipality’s total education grant shall not exceed 105.5% of the total education grant received in the previous fiscal year. The bill also provides a stabilization grant to certain municipalities in FY 2012 equal to the decrease from the municipality’s FY 2011 total education grant, and provides that a municipality shall continue to receive this stabilization grant in FY 2013 and each year thereafter. Finally, this bill repeals the statutory provisions requiring that excess education tax payments be remitted to the Department of Revenue Administration thereby permitting municipalities to retain any excess education tax revenue. The Department assumes Average Daily Membership (ADM) is calculated based upon the student level End of Year (EOY) submissions provided by each school; Free and Reduced Lunch (F&R) status is determined based upon the F&R collection, Fall 2008. All students receiving Free Milk, Reduced Meal or Free Meals are included. Students reported as F&R and in a school on October 1st are included; ADM for F&R include all ADM for identified students as student moves from school to school; and No consumer price index (CPI) adjustments are assumed. The Department’s estimates do not include any impact on charter schools.
For the purposes of this fiscal note, the Department assumes per pupil aid amounts as follows –
Base Adequacy $3,450
Free and Reduced Lunch (F&R) $1,725
Special Education (SPED) $1,856
Limited English Proficiency (LEP) $675
3rd Grade Students not Proficient $675
In total, the Department estimates the FY 2012 calculated cost of an adequate education as follows –
FY 2012
Base Adequacy $659,030,213
F&R Differentiated Aid $67,524,551
SPED Differentiated Aid $56,598,902
LEP Differentiated Aid $2,119,921
3rd Grade Differentiated Aid $696,271
Total Calculated Cost of an Adequate Education $785,969,858
The bill makes no changes the State-Wide Education Property Tax (SWEPT) provisions, and the Department estimates the amount of SWEPT raised will total $363,121,283 in FY 2012. To determine a municipality’s education grant amount, the Department deducts the estimated SWEPT payment from the total calculated cost of an adequate education. In the event that a municipality’s estimated SWEPT payment is greater than the total calculated cost of an adequate education, they could retain the excess funds locally. The estimated SWEPT revenue is broken down as follows –
SWEPT Revenue (Local and State Revenue)
Current Law Proposed Bill Difference
(Annual) (Annual) (Annual)
SWEPT retained by towns $346,143,646 $340,026,203 $(6,117,443)
Excess SWEPT retained locally $0 $23,095,080 $23,095,080
Excess SWEPT Sent to ETF $16,977,637 $0 $(16,977,637)
Total SWEPT Revenue $363,121,283 $363,121,283 $0
After determining the amount of the excess SWEPT, the Department calculated total education grants as follows –
FY 2012
Total Cost of an Adequate Education $785,969,858
Minus SWEPT (not including excess SWEPT retained locally) $(340,026,203)
Total Education Grants $445,943,655
The bill also provides that municipalities receive a stabilization grant in FY 2012 equal to the decrease from the municipality’s FY 2011 total education grant, and provides that a municipality shall continue to receive this stabilization grant in FY 2013 and each year thereafter. Historically, the Department has interpreted the funding law such that a district whose calculated aid was lower than their SWEPT contribution, would not receive a grant. Procedures that ensured grants maintained a prior level of funding were not increased to that level if the town’s SWEPT was higher than the adequacy funding determination. For the purposes of this fiscal note, and based on the Department’s understanding of the intent of the proposal, the Department assumes grants will be given even when the SWEPT amount is greater than the adequacy funding determination. As a result, the Department estimates the total cost of the stabilization grants at $153,109,642. In addition, this bill states for the biennium ending June 30, 2013 no municipality shall receive a total education grant that exceeds that municipality’s total education grant in the second year of the previous biennium. This provision will reduce total education grant costs by $20,816,692. The Department estimates the total education grant amount proposed under this bill at $578,236,605 ($445,943,655 + $153,109,642 - $20,816,692) in FY 2012. The Department estimates the fiscal impact on state expenditures and local revenue as follows -
Total Education Aid (State Expenditures and Local Revenue)
Current Law Proposed Bill Difference
(Annual) (Annual) (Annual)
Net SWEPT retained by Town $346,143,646 $363,121,283 $16,977,637
Total Education Grants $664,835,883 $578,236,605 $(86,599,278)
Total Education Aid $1,010,979,530 $941,357,888 $(69,621,641)
The Department assumes the FY 2012 figures will remain constant for FY 2013. Beginning on July 1, 2013, and each fiscal year thereafter, a municipality’s total education grant cannot exceed 105.5% of the total education grant distributed to that municipality in the previous fiscal year. The Department assumes the amount of the stabilization grant in FY 2014 and 2015 will remain constant, and the 5.5% will only apply to the education aid portion of the grant. The exact fiscal impact for FY 2014 and beyond cannot be determined at this time.
