HB521: relative to funding for students eligible for the free and reduced-price meal program.

HB 521-FN – AS INTRODUCED

2009 SESSION

09-0021

04/01

HOUSE BILL 521-FN

AN ACT relative to funding for students eligible for the free and reduced-price meal program.

SPONSORS: Rep. Stiles, Rock 15; Rep. Kurk, Hills 7; Rep. O'Neil, Hills 19; Rep. J. Day, Rock 13; Rep. W. Smith, Rock 18; Sen. Bragdon, Dist 11

COMMITTEE: Education

ANALYSIS

This bill amends the procedure for calculating eligibility for the federal free and reduced-price meal program.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09-0021

04/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT relative to funding for students eligible for the free and reduced-price meal program.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 School Money; Cost of an Opportunity for an Adequate Education. Amend RSA 198:40-a, I to read as follows:

I. Beginning July 1, 2009, and for every biennium thereafter, the annual cost of providing the opportunity for an adequate education as defined in RSA 193-E:2-a shall be $3,450 per pupil attending a public school, plus any applicable differentiated aid for which a pupil is eligible. Differentiated aid shall be calculated as follows:

(a) An additional $431 per pupil in kindergarten through grade 12 eligible for the federal free and reduced-price meal program who attends a public school in which less than 12 percent of the pupils reported in the school’s ADMA in the determination year are eligible for the federal free and reduced-price meal program.

(b) An additional $863 per pupil eligible for the federal free or reduced-price meal program in a public school in which at least 12 percent but less than 24 percent of pupils reported in the school’s ADMA in the determination year, are eligible for the federal free or reduced-price meal program.

(c) An additional $1,725 per pupil eligible for the federal free or reduced-price meal program in a public school in which at least 24 percent but less than 36 percent of pupils reported in the school’s ADMA in the determination year, are eligible for the federal free or reduced-price meal program.

(d) An additional $2,588 per pupil eligible for the federal free or reduced-price meal program in a public school in which at least 36 percent but less than 48 percent of the pupils reported in the school’s ADMA in the determination year, are eligible for the federal free or reduced-price meal program.

(e) An additional $3,450 per pupil eligible for the federal free or reduced-price meal program in a public school in which 48 percent or more of the pupils reported in the school’s ADMA in the determination year, are eligible for the federal free or reduced-price meal program.

2 Effective Date. This act shall take effect July 1, 2009 at 12:01 a.m.

LBAO

09-0021

12/08/08

HB 521-FN - FISCAL NOTE

AN ACT relative to funding for students eligible for the free and reduced-price meal program.

FISCAL IMPACT:

The Department of Education states this bill will decrease state education trust fund expenditures and local revenue by $31,973,530 in FY 2010 and FY 2011 and $141,373,716 in FY 2012 and FY 2013. There will be no fiscal impact on state and county revenue or county and local expenditures.

METHODOLOGY:

The Department of Education states this bill amends the calculation of the cost of an adequate education by providing additional per pupil differentiated aid to schools in which at least 12 percent of pupils are eligible for the federal free or reduced-price meal program by multiplying the applicable dollar amount by the average daily membership (ADM) of eligible pupils in the school, rather than the ADM of all pupils in the school.

The Department used FY 2007 school and student information to calculate FY 2010 and FY 2011 estimates. The Department made the following assumptions when estimating the cost of an adequate and fiscal capacity disparity aid in FY 2012 and FY 2013:

• ADM will decrease by 2%

• The number of pupils eligible for a free or reduced-price meal will increase by 7%

• School concentration of pupils eligible for a free or reduced-price meal will increase by 2%

• The number of English language learning students, equalized valuations, equalized valuation per pupil, and median family income do not change

• Estimated two times the average annual change in consumer price index from 2006 to 2009 is 7.5%

LBAO

09-0021

12/08/08

The Department estimates this bill decreases the cost of an adequate education from $921,443,751 to $794,249,535 in FY 2010 and FY 2011 and from $987,641,833 to $846,268,117 in FY 2012 and FY 2013. The Department then estimated the amount of state education property tax to be retained by towns, the cost of fiscal capacity disparity aid, and the effect of the transition for FY 2010 and FY 2011. These estimates are summarized below.

FY 2010 / FY 2011 FY 2012 / FY 2013

Estimated State Expenditures / Local Revenue – This Bill

State Property Tax

Retained by Town $363,165,834 $343,597,079

Adequacy Grant, Fiscal

Capacity Disparity Aid,

Transition Grant (FY 10/11) $545,623,612 $549,606,452

Total $908,789,446 $893,203,531

Estimated State Expenditures / Local Revenue – Current Law

State Property Tax

Retained by Town $363,165,834 $348,586,590

Adequacy Grant, Fiscal

Capacity Disparity Aid,

Transition Grant (FY 10/11) $577,597,142 $685,990,657

Total $940,762,976 $1,034,577,247

Change ($31,973,530) ($141,373,716)