HB1814: relative to additional education grants to municipalities for the purpose of restoring reductions in stabilization grants

HB 1814-FN-LOCAL - AS INTRODUCED

2018 SESSION

18-2438

06/03

HOUSE BILL 1814-FN-LOCAL

AN ACT relative to additional education grants to municipalities for the purpose of restoring reductions in stabilization grants.

SPONSORS: Rep. Horn, Merr. 2; Rep. Testerman, Merr. 2; Rep. Steven Smith, Sull. 11; Rep. M. Moffett, Merr. 9

COMMITTEE: Finance

ANALYSIS

This bill requires the department of education to distribute certain surplus funds to municipalities to offset stabilization grant reductions in fiscal year 2019.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2438

06/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eighteen

AN ACT relative to additional education grants to municipalities for the purpose of restoring reductions in stabilization grants

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

1 Statement of Purpose. The general court recognizes that efforts are underway to study school funding in New Hampshire. Adequacy is an aspect of funding that is decreasing at a rate of 4 percent per year. Should the legislature wish to relieve distressed school districts it is necessary to provide a means to address these decreases in funding. Should the financial situation in New Hampshire allow it, section 2 of this act will provide a means for relief for school districts through prioritizing economically distressed districts according to a formula.

2 New Subparagraph; School Money; Education Grants. Amend RSA 198:41, IV by inserting after subparagraph (d) the following new subparagraph:

(e) For fiscal year 2019, the department of education shall distribute an additional education grant to each municipality in the amount of its 4 percent stabilization grant reduction. No municipality with an ADMA of zero, or that raises and retains more in education property tax than its calculated cost of an adequate education, shall be eligible for an additional grant under this subparagraph. The governor is authorized to draw a warrant from the education trust fund for the purpose of this subparagraph.

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

LBAO

18-2438

Revised 1/12/18

HB 1814-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

AN ACT relative to assigning the undesignated revenue surplus to the education trust fund for the purpose of restoring reductions in stabilization grants.

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

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

Appropriation

Amount Required to Pay All Grants

$0

$0

$0

Revenue

$0

$0

$0

$0

Expenditures

$6,289,840

$0

$0

$0

Funding Source:

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

LOCAL:

Revenue

$6,289,840

$0

$0

$0

Expenditures

$0

$0

$0

$0

METHODOLOGY:

This bill provides an additional grant to municipalities in FY 2019 in the amount of each municipality’s four percent stabilization grant reduction, essentially “suspending” the effect of the stabilization grant reduction for one year. This will result in state education trust fund expenditures and an increase to local revenue of an estimated $6,289,840. The following is an estimate of this bill’s impact, by municipality, using FY 2019 preliminary data:

State Total

$6,289,840

Acworth

$9,815

Litchfield

$86,680

Albany

$12,617

Littleton

$59,950

Alexandria

$11,337

Londonderry

$51,803

Allenstown

$89,163

Loudon

$28,591

Alstead

$28,851

Lyman

$4,063

Andover

$8,498

Lyme

$2,110

Antrim

$48,296

Lyndeborough

$3,812

Ashland

$11,006

Madbury

$5,691

Auburn

$2,768

Madison

$12,307

Barnstead

$35,537

Manchester

$498,178

Barrington

$29,019

Marlborough

$22,004

Bath

$10,361

Marlow

$14,760

Belmont

$49,351

Mason

$2,156

Bennington

$19,593

Merrimack

$21,252

Benton

$2,391

Middleton

$23,183

Berlin

$219,824

Milan

$25,100

Bethlehem

$17,970

Milford

$44,019

Boscawen

$44,798

Milton

$51,247

Bow

$13,968

Monroe

$2,125

Bradford

$7,982

Mont Vernon

$10,103

Bristol

$10,681

Nashua

$191,757

Brookfield

$2,241

Nelson

$3,836

Brookline

$30,341

New Boston

$1,415

Campton

$26,768

New Hampton

$14,366

Canaan

$38,271

New Ipswich

$35,662

Charlestown

$100,801

Newport

$146,551

Chester

$21,293

Newton

$3,884

Chesterfield

$4,770

Northfield

$91,097

Chichester

$4,625

Northumberland

$55,441

Claremont

$251,312

Northwood

$30,774

Clarksville

$1,877

Orange

$5,140

Colebrook

$43,520

Orford

$2,170

Columbia

$7,991

Ossipee

$40,759

Concord

$71,765

Pembroke

$94,522

Conway

$31,748

Penacook

$40,688

Cornish

$16,746

Peterborough

$16,014

Croydon

$7,635

Piermont

$5,764

Dalton

$13,167

Pittsfield

$87,411

Danbury

$15,632

Plainfield

$6,702

Danville

$43,285

Plymouth

$68,476

Deerfield

$13,650

Raymond

$69,785

Deering

$15,936

Richmond

$18,634

Derry

$346,349

Rochester

$351,072

Dorchester

$7,234

Roxbury

$1,388

Dublin

$595

Rumney

$14,719

Dummer

$2,036

Salisbury

$2,583

Durham

$497

Sanbornton

$6,822

Effingham

$12,945

Sandown

$55,909

Enfield

$2,349

Seabrook

$3,162

Epping

$34,656

Sharon

$1,151

Epsom

$38,222

Shelburne

$2,346

Farmington

$116,584

Somersworth

$89,966

Fitzwilliam

$8,329

South Hampton

$781

Francestown

$6,944

Springfield

$1,733

Franklin

$161,400

Stark

$7,266

Gilford

$14,553

Stewartstown

$7,821

Gilsum

$11,442

Strafford

$25,597

Goffstown

$41,604

Stratford

$19,570

Gorham

$33,973

Sullivan

$15,929

Goshen

$8,867

Surry

$2,720

Grafton

$10,007

Swanzey

$110,797

Greenfield

$13,911

Tamworth

$4,449

Greenland

$789

Temple

$3,388

Greenville

$47,446

Thornton

$6,124

Hampstead

$547

Tilton

$22,667

Hancock

$5,158

Troy

$43,422

Haverhill

$84,391

Unity

$17,076

Henniker

$33,568

Wakefield

$25,796

Hill

$2,583

Walpole

$15,449

Hillsboro

$93,516

Warner

$9,148

Hinsdale

$98,225

Warren

$16,880

Jaffrey

$48,427

Weare

$125,036

Jefferson

$8,321

Webster

$514

Keene

$142,246

Wentworth

$11,898

Laconia

$58,540

Westmoreland

$9,703

Lancaster

$79,806

Whitefield

$33,528

Landaff

$2,453

Wilmot

$3,242

Langdon

$6,965

Wilton

$2,696

Lebanon

$30,736

Winchester

$74,193

Lee

$26,905

Windsor

$2,621

Lempster

$10,843

Woodstock

$4,156

Lisbon

$35,377

AGENCIES CONTACTED:

Department of Education