HB584: relative to chartered public school funding.

HB 584-FN - AS INTRODUCED

2017 SESSION

17-0315

04/10

HOUSE BILL 584-FN

AN ACT relative to chartered public school funding.

SPONSORS: Rep. Weyler, Rock. 13; Rep. Ladd, Graf. 4; Rep. Hinch, Hills. 21; Rep. Cordelli, Carr. 4; Rep. Hill, Merr. 3; Sen. Reagan, Dist 17; Sen. Giuda, Dist 2

COMMITTEE: Finance

ANALYSIS

This bill provides that funding for chartered public school pupils shall be based on a percentage of the most recently available statewide average cost per pupil for 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0315

04/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seventeen

AN ACT relative to chartered public school funding.

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

1 Chartered Public School Funding. Amend RSA 194-B:11, I(b) to read as follows:

(b)(1) Except as provided in subparagraph (2), for a chartered public school authorized by the state board of education pursuant to RSA 194-B:3-a, the state shall pay [tuition pursuant to RSA 198:40-a, I, II, and II-a plus an additional grant of $2,036 for the Virtual Learning Academy Charter School and $3,036 for all other chartered public schools directly to the chartered public school for each pupil who is a resident of this state in attendance at such chartered public school. Beginning July 1, 2017 and every biennium thereafter, the department of education shall adjust the per pupil amount of the additional grant 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] 55 percent of the state average cost per pupil for public school pupils as calculated on July 1 each year, including any differentiated aid pursuant to RSA 198:40-a, I-II for which a pupil is eligible, directly to the chartered public school. The state shall pay amounts required pursuant to RSA 198:40-a, III directly to the resident district.

(2) For the Virtual Learning Academy Charter School authorized pursuant to RSA 194-B:3-a, the state shall pay tuition pursuant to RSA 198:40-a, I, II, and II-a plus an additional grant of $2,036 directly to the Virtual Learning Academy Charter School for each pupil who is a resident of this state in attendance at such chartered public school. Beginning July 1, 2017 and every biennium thereafter, the department of education shall adjust the per pupil amount of the additional grant 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 state shall pay amounts required pursuant to RSA 198:40-a, III directly to the resident district.

(3) For an online chartered public school which [receives] received its initial authorization to operate from the state board of education pursuant to RSA 194-B:3-a on or after July 1, 2013, the state shall pay tuition pursuant to RSA 198:40-a directly to the online chartered public school for each pupil who is a resident of this state in attendance at such chartered public school. In this subparagraph, "online chartered public school'' means a chartered public school which provides the majority of its classes and instruction on the Internet.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO 17-0315

1/20/17

HB 584-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to chartered public school funding.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

Appropriation

$0

$0

$0

$0

Revenue

$0

$0

$0

$0

Expenditures

$6,075,804

$7,831,593

Indeterminable Increase

Indeterminable Increase

Funding Source:

[ ] General [ X ] Education [ ] Highway [ ] Other

METHODOLOGY:

This bill, assumed effective for FY 2018, amends the amount of money per pupil the State would provide to public charter schools for each student, except for payments to the Virtual Learning Academy Charter School, which is unaffected by this bill. Under current law, the annual per pupil aid for public charter schools is $4,917.78 for kindergarten students, and $6,735.81 for grade 1-12 students, including any qualifying differentiated aid under RSA 198:40-a. Under this bill, per pupil aid for all pupils (including kindergarten) would be calculated at 55 percent of the most recently available statewide average cost per pupil for public schools, including any differentiated aid. It is unclear if “including any differentiated aid” means differentiated aid is included in the average cost per pupil or if charter schools would receive differentiated aid payments in addition to the 55 percent of the average cost per pupil. The calculations below assume the later and that differentiated aid payments would be unaffected by this bill.

School Year

State Average Cost per Pupil

55% Estimated State Average Cost Per Pupil

Payment Year

2015/2016

(Actual)

$14,901.93

$8,196.06

FY 2018

2016/2017

(Estimated*)

$15,372.83

$8,455.06

FY 2019

* The average increase of the average cost per pupil from 2012 through 2016 is 3.16%, which is assumed as the estimated increase from FY 2016 to FY 2017.

FY 2018

FY 2019

Current Law

Annual Per Pupil Aid (Kindergarten)

$4,917.78

$4,917.78

Annual Per Pupil Aid (Grades 1-12)

$6,735.81

$6,735.81

Enrollment Projection (Kindergarten)

191

213

Enrollment Projection (Grades 1-12)

3,732

4,117

Total Per Pupil Aid (Kindergarten)

$939,296

$1,047,487

Total Per Pupil Aid (Grades 1-12)

$25,138,043

$27,731,330

Differentiated Aid

$1,897,834

$2,110,570

VLACS

$9,132,271

$10,229,515

Total Under Current Law

$37,107,444

$41,118,902

Proposed

Annual Per Pupil Aid (Kindergarten)

$8,196.06

$8,455.06

Annual Per Pupil Aid (Grades 1-12)

$8,196.06

$8,455.06

Enrollment Projection (Kindergarten)

191

213

Enrollment Projection (Grades 1-12)

3,732

4,117

Total Per Pupil Aid (Kindergarten)

$1,565,447

$1,800,928

Total Per Pupil Aid (Grades 1-12)

$30,587,696

$34,809,482

Differentiated Aid

$1,897,834

$2,110,570

VLACS

$9,132,271

$10,229,515

Total Under This Bill

$43,183,248

$48,950,495

Estimated Increase / (Decrease)

$6,075,804

$7,831,593

Charter school enrollment estimates for FY 2020 and each year thereafter have not yet been made.

AGENCIES CONTACTED:

Department of Education