Bill Text: NH SB227 | 2015 | Regular Session | Amended
Bill Title: Relative to calculating the cost of an adequate education.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Engrossed - Dead) 2015-11-12 - Committee report: Ought to Pass with Amendment #2015-2553h for Jan 6 (Vote 24-1; Consent Calendar); House Calendar 67, PG. 7 [SB227 Detail]
Download: New_Hampshire-2015-SB227-Amended.html
SB 227 - AS AMENDED BY THE HOUSE
03/26/2015 0976s
29Apr2015… 1466h
2015 SESSION
15-0945
04/01
SENATE BILL 227
AN ACT relative to calculating the cost of an adequate education.
SPONSORS: Sen. Stiles, Dist 24; Sen. Watters, Dist 4; Rep. Shaw, Hills 16
AMENDED ANALYSIS
This bill makes various changes to the method of calculating, distributing, and reporting education grants to municipalities, and repeals the provisions relating to differentiated aid and, effective July 1, 2016, the cap on the total education grant distributed to a municipality.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/26/2015 0976s
29Apr2015… 1466h
15-0945
04/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to calculating the cost of an adequate education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Adequate Education; Definitions. Amend RSA 198:38 to read as follows:
198:38 Definitions. In this subdivision:
I. “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, [as defined in RSA 189:1-d, III of the school year in which the calculation is made,] in the determination year, provided that no kindergarten pupil shall count as more than 1/2 day attendance per [calendar] school 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.
II. “Commissioner” means the commissioner of the department of education.
III. “Department” means the department of education.
IV. “Determination year” means the school year immediately preceding the school year for which aid is determined. Unless otherwise indicated, determination year data shall be used to calculate aid.
V. [“Educationally disabled child” or “educationally disabled pupil”] “Pupil receiving special education services” [shall mean “educationally disabled child”] means the ADMA of a child with a disability as defined in RSA 186-C:2, I.
VI. “English language learner” means[ a child] the ADMA of a pupil 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. For the purposes of RSA 198:40-a, the department shall calculate the number of English language learners using ADMA data. The department shall use the ADMA of all pupils receiving English language learner services as of October 2006 in calculating 2006-2007 ADMA data] participated in the annual assessment of English language proficiency required of such pupils by the Elementary and Secondary Education Act, 20 U.S.C. section 6311 (b)(7).
VI-a. “Municipality” means a city, town, or unincorporated place.
VII. “Pupils eligible for a free or reduced-price meal” means the ADMA of pupils in [grade 1] kindergarten through grade 12 who are eligible for the federal free or reduced-price meal program. [For the purposes of RSA 198:40-a, the department shall calculate the concentration of pupils eligible for free or reduced-price meals using ADMA data. The department shall use the ADMA of pupils eligible for a free or reduced-price meal as of October 2006 in calculating ADMA concentrations for 2006-2007 ADMA data.] No pupil or school shall be required to participate in the federal free or reduced price meal program.
VIII. “School district” means school district as defined in RSA 194:1 and shall include cooperative school districts as defined in RSA 195:1, I.
2 Adequate Education; Cost of an Opportunity for an Adequate Education. RSA 198:40-a is repealed and reenacted to read as follows:
198:40-a Cost of an Opportunity for an Adequate Education.
I. For the biennium beginning July 1, 2015, the annual cost of providing the opportunity for an adequate education as defined in RSA 193-E:2-a shall be as specified in paragraph II. The department shall adjust the rates specified in this paragraph in accordance with RSA 198:40-d:
II.(a) A cost of $3,561.27 per pupil in the ADMA, plus differentiated aid as follows:
(b) An additional $1,780.63 for each pupil in the ADMA who is eligible for a free or reduced price meal; plus
(c) An additional $697.77 for each pupil in the ADMA who is an English language learner; plus
(d) An additional $1,915.86 for each pupil in the ADMA who is receiving special education services; plus
(e) An additional $697.77 for each third grade pupil in the ADMA with a test score below the proficient level on the reading component of the state assessment administered pursuant to RSA 193-C:6, provided the pupil is not eligible to receive differentiated aid pursuant to subparagraphs (b)-(d).
III. The sum total calculated under paragraph II shall be the cost of an adequate education. The department shall determine the cost of an adequate education for each municipality based on the ADMA of pupils who reside in that municipality.
3 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, [2013] 2017 and every biennium thereafter, the department of education shall adjust the [sum of the amounts determined] cost of an adequate education 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.
4 Adequate Education; Determination of Education Grants. Amend RSA 198:41 to read as follows:
198:41 Determination of Education Grants.
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 total education grant] an amount 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 funding year education tax warrant [to be] issued by the commissioner of revenue administration for such municipality [reported] pursuant to [RSA 76:9] RSA 76:8 for the next tax year.
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 total education grant] an amount 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 in the determination year for items of current education expense as determined by the department of education minus the amount of the funding year education 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] RSA 76:8.
III.(a) For the biennium ending June 30, 2013, the department of education shall not distribute a total education grant [on behalf of all pupils who reside in] to a municipality that exceeds that municipality’s total education grant in the second year of the previous biennium.
(b) [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 108 percent of the total education grant distributed to such municipality in the previous fiscal year.
IV.(a)] For fiscal year 2012, the department of education shall identify all municipalities in which the [fiscal year 2012 total education grant] amount determined in paragraph I or II will be less than the fiscal year 2011 total education grant. The department shall distribute a stabilization grant to each of those municipalities equal to 100 percent of the decrease. The sum shall be the total education grant for the municipality.
[(b)] (c) For fiscal year 2013, the department of education shall [identify all municipalities in which the fiscal year 2013 total education grant, including any stabilization grant distributed pursuant to subparagraph (a), will be less than the fiscal year 2011 total education grant the department shall distribute funds to each of those municipalities equal to 100 percent of the decrease] distribute a total education grant to each municipality in an amount equal to the amount determined in paragraph I or II, plus the amount of the fiscal year 2012 stabilization grant. The sum shall be the total education grant for the municipality.
[(c)] IV.(a) For fiscal year 2014[, and each fiscal year thereafter] through fiscal year 2016, the department of education shall distribute a total education grant to each municipality in an amount equal to the [total education grant for the fiscal year in which the grant is calculated] amount determined in paragraph I or II, plus the amount of the fiscal year 2012 stabilization grant[, if any, distributed to the municipality].
(b) For fiscal year 2017 and each fiscal year thereafter, the department of education shall distribute a total education grant to each municipality in an amount equal to the amount determined in paragraph I or II, plus 90 percent of the municipality’s fiscal year 2012 stabilization grant.
(c) Beginning with the 2014 fiscal year, and each fiscal year thereafter, the department of education shall not distribute a total education grant to a municipality that exceeds 108 percent of the total education grant distributed to such municipality in the previous fiscal year.
V. The department shall use the best available data and methods to estimate ADMA and education grants by November 15 of the year preceding the school year for which aid is determined.
VI. The department shall produce a revised estimate of grants using actual determination year data for the purpose of settling municipal tax rates. A municipality’s grant estimate shall not be less than 95 percent of the estimate reported pursuant to paragraph V. The commissioner of the department of education shall provide the estimate for the current fiscal year to the commissioner of the department of revenue administration no later than October 1 of each year.
VII. When final determination year data is available, but not later than April 1, the department shall make a final determination of grant amounts. A municipality’s grant estimate shall not be less than 95 percent of the estimate reported pursuant to paragraph V. The department shall adjust the April grant disbursement required pursuant to RSA 198:42 so that the total amount disbursed for the fiscal year shall match the final grant determination.
VIII. Reports of grant determinations for municipalities required pursuant to paragraphs V-VII shall be available to the public by the date specified in paragraphs V-VII, and the department shall make available a report for multi-town school districts. The department of education shall provide the department of revenue administration the information needed to set tax rates.
5 Adequate Education; Distribution Schedule of Adequate Education Grants. Amend RSA 198:42 to read as follows:
198:42 Distribution Schedule of Adequate Education Grants; Appropriation.
I. The adequate education grant determined in RSA 198:41 shall be distributed to each municipality’s school district or districts [legally responsible for the education of the pupils who attend approved public schools within the district or in other districts or who attend approved programs for children with disabilities, as the case may be,] from the education trust fund in 4 payments of 20 percent on September 1, 20 percent on November 1, 30 percent on January 1, and 30 percent on April 1 of each school year; provided that for a dependent school district, the grant determined in RSA 198:41 shall be distributed to the municipality, which shall appropriate and transfer the grant funds to its dependent school department. [During the course of the school year, the commissioner may make adjustments in grant payments necessitated by variations in the ADMA data for a school district for any fiscal year in which the ADMA calculation is made.]
II. For the fiscal year beginning July 1, 2005, and every fiscal year thereafter, the amount necessary to fund the grants under RSA 198:41 is hereby appropriated to the department from the education trust fund created under RSA 198:39. The governor is authorized to draw a warrant from the education trust fund to satisfy the state’s obligation under this section. Such warrant for payment shall be issued regardless of the balance of funds available in the education trust fund. If the balance in the education trust fund, after the issuance of any such warrant, is less than zero, the commissioner of the department of administrative services shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the distribution of adequate education grants.
III. The department of education shall certify the amount of each grant to the state treasurer and direct the payment thereof to the school district or municipality. [When a payment of a grant is made to a school district, the municipality on whose behalf the payment is made shall receive notification from the state treasurer of the amount of the payment made to its school district or districts.]
IV. For chartered public schools approved by the state board of education, the department of education may expend budgeted amounts to fund chartered public school tuition payments under RSA 194-B:11, I. Said amounts are hereby appropriated to the department from the education trust fund established under RSA 198:39. The education trust fund shall be used to satisfy the state’s obligation under this paragraph. The payment shall be issued regardless of the balance of funds available in the education trust fund. The department of education may request additional funds from the fiscal committee of the general court, with the approval of governor and council, for a new chartered public school approved for initial operation by the state board of education pursuant to RSA 194-B:3-a.
6 Adequate Education; Submission of Data. Amend RSA 198:45 to read as follows:
198:45 Submission of Data.
[I.] The governing body of every school district, city, joint maintenance agreement, chartered public school, or approved public academy shall submit all records, data, or other information required under this subdivision in accordance with the provisions of RSA 189:28.
[II. The commissioner of the department of education shall provide adequacy aid estimates for the current fiscal year to the commissioner of the department of revenue administration no later than October 1 of each year.]
7 School Boards; Statistical Reports. Amend RSA 189:28 to read as follows:
189:28 Statistical Reports; Failure to File Report.
I. The governing body of every [school district, city, joint maintenance agreement, chartered public school, or approved public academy] public education agency, shall, on or before August 1 in each year, submit to the department of education those statistical reports necessary to compute the average daily membership of pupils attending each school district, and the average daily membership of pupils resident in each school district. Information relating to the fall enrollment, drop-outs, staffing census, and average teacher salary, as of October 1 of each school year, shall be submitted to the department of education on or before October 15. Private schools shall submit average daily membership in attendance, fall enrollment, and teacher staff census.
II.(a) The information needed to determine compliance with performance or accountability measures of [the school district, city, or public academy] public education agency under RSA 193-E:3 or federal law, shall be submitted to the department of education in a timely manner as determined by the department of education. The state board of education shall ensure the accuracy and completeness of such data and shall take enforcement or other actions when necessary, including verification checks, for the purpose of enforcing the provisions of this section.
(b) If the department of education requests verification of information relevant to reports submitted, the [school district, city, or public academy] public education agency shall provide corrected information or verification within 10 business days of such request. The governing body of every [school district, city, joint maintenance agreement, chartered public school, or public academy] public education agency shall maintain files of all records, data, and other information submitted pursuant to this section for not less than 5 years from the date of submission. The state board of education shall have access to such records, data, and information for the purpose of ensuring the accuracy of reported information.
III. Each statistical report submitted under this section by a public education agency shall include a certification, signed by the [superintendent of the school district,] chief executive official that states: “I certify, under the pains and penalties of perjury, that all of the information contained in this document is true, accurate, and complete, and that the school board chairperson has received a copy of this document.”
IV. The commissioner of the department of education may grant a school district, city, or public academy up to a 30-day extension of the reporting deadline set forth in paragraph I. The commissioner of the department of education shall notify the governing body of the [school district, city, or public academy] public education agency that all state aid to education and all federal aid, if the report is required by federal law, shall be withheld until such time as complete and accurate information is submitted.
V. The department of education shall determine the average daily membership in attendance of every [school district, city, joint maintenance agreement, chartered public school, public academy] public education agency, and private institution that operates an elementary or secondary school, and the average daily membership in residence of each school district, municipality within a cooperative school district, and unincorporated place.
VI. In this section, “public education agency” means a school district, city, joint maintenance agreement, chartered public school, or approved public academy.
8 Education Tax Credit; Definitions. Amend RSA 77-G:1, I to read as follows:
I. “Adequacy cost” means the total cost of the opportunity for an adequate education as defined in RSA 198:40-a[, I-III].
9 Education Tax Credit; Scholarship Organizations. Amend RSA 77-G:5, II(e) to read as follows:
(e) Notwithstanding RSA 193-E:5, on or before July 15, a scholarship organization shall furnish the unique pupil identifier and date of birth for each student eligible pursuant to RSA 77-G:1, VIII(a)(1) and (2) who is receiving a scholarship, and the subparagraph under which he or she was eligible, to the department of education. The department of education shall notify the scholarship organization within 30 days of any students who are ineligible under RSA 77-G:1, VIII(a)(1). The scholarship organization shall notify the department of education within 30 days if any student eligible under RSA 77-G:1, VIII(a)(1) or (2) is not awarded a scholarship or is awarded a scholarship yet subsequently returns to public school. The department of education shall return such student to the calculation of the average daily membership in residence, as defined in RSA 189:1-d, IV, for the student’s school district of residence, and add the amount calculated under RSA 198:40-a[, I-III] to the adequate education grant amount to the student’s school district of residence, and include such amount in the next adequate education grant payment made under RSA 198:42.
10 Education Tax Credit; Requirements. Amend RSA 77-G:7, I to read as follows:
I. The department of education shall determine the number of students receiving a scholarship under RSA 77-G:1, VIII(a)(1) and (2) who were counted in the calculation of the average daily membership in attendance, as defined in RSA 198:38, I, for schools, other than chartered public schools, for the student’s school district of residence and for each such student, shall deduct the amount calculated under RSA 198:40-a[, I-III] from the total education grant amount disbursed to the student’s school district of residence calculated pursuant to RSA 198:40-a[, IV(b)-(c)]. This adjustment shall be completed prior to September 1 of the program year in which the scholarships are granted.
11 School Money; Reports Required. Amend RSA 198:4-d, II to read as follows:
II. A report filed by the governing body of each city and school district shall revise all the estimated revenues for the year. This report shall be filed by September 1 of each year. The revised estimates by school districts for the adequate education grants calculated under RSA 198:41 shall be considered the most accurate within 5 percent of the amount estimated pursuant to RSA 198:40-a[, V].
12 Repeal. The following are repealed:
I. RSA 198:40-b, relative to use of differentiated aid.
II. RSA 198:41, IV(c), relative to the cap on the total education grant distributed to a municipality.
III. RSA 198:44, relative to the duties of the department of education and the state board of education.
13 Effective Date.
I. Paragraph II of section 12 of this act shall take effect July 1, 2016.
II. The remainder of this act shall take effect July 1, 2015.
LBAO
15-0945
Amended 05/06/15
SB 227 FISCAL NOTE
AN ACT relative to calculating the cost of an adequate education.
FISCAL IMPACT:
The Department of Education states this bill, as amended by the House (Amendment #2015-1466h), will decrease state education trust fund expenditures and local revenues by $4,763,085 in FY 2017 and by an indeterminable amount in FY 2018 and each year thereafter. There will be no impact on state and county revenues or county and local expenditures.
METHODOLOGY:
The Department of Education states this bill makes the following changes relative to adequate education grants:
Effective in FY 2016
• No changes
Effective in FY 2017
• Reduces the “FY 2012 stabilization grant” by 10% (section 4)
• Eliminates the limitation on total education grants to municipalities (section 12)
The Department of Education, using preliminary student data and stated assumptions, has estimated potential impact of this bill as follows:
FY 2017 Assumptions
• Preliminary FY 2016 student data used as preliminary data for FY 2017 grant calculations will not be available until November 2015 and actual data will not be available until September 2016.
FY 2017 Preliminary Data
Current Law
Proposed
Increase
Adequate Education Grants
$568,578,076
$563,841,981
($4,736,095)
Statewide Education Property Tax
$363,137,923
$363,137,923
$0
Total Cost
$931,715,999
$956,850,215
($4,736,095)
The Department of Education is unable to provide estimates for FY 2018 and each year thereafter.
