SB309: relative to stabilization grants for education.

SB 309-FN-LOCAL - AS AMENDED BY THE SENATE

03/07/2019 0655s

2019 SESSION

19-0499

06/05

SENATE BILL 309-FN-LOCAL

AN ACT relative to stabilization grants for education.

SPONSORS: Sen. Birdsell, Dist 19; Sen. Giuda, Dist 2; Sen. Bradley, Dist 3; Sen. Carson, Dist 14; Sen. Gray, Dist 6; Sen. Morse, Dist 22; Sen. Starr, Dist 1; Sen. Ward, Dist 8; Rep. O'Connor, Rock. 6; Rep. Chirichiello, Rock. 6; Rep. Eisner, Rock. 6

COMMITTEE: Finance

ANALYSIS

This bill modifies the education stabilization grants to municipalities.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/07/2019 0655s 19-0499

06/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nineteen

AN ACT relative to stabilization grants for education.

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

1 Cost of Opportunity for an Adequate Education; Determination of Education Grants. Amend RSA 198:41, IV(d) to read as follows:

(d) 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 total education grant for the fiscal year in which the grant is calculated plus a percentage of the municipality's fiscal year 2012 stabilization grant, if any, distributed to the municipality; the percentage shall be 96 percent for fiscal year 2017, [and shall be reduced by 4 percent of the amount of the 2012 education grant for each fiscal year thereafter] 92 percent for fiscal year 2018, 88 percent for fiscal year 2019, and 100 percent for fiscal year 2020 and each fiscal year thereafter. No stabilization grant shall be distributed to any municipality for any fiscal year in which the municipality's education property tax revenue collected pursuant to RSA 76 exceeds the total cost of an adequate education or to any municipality for any fiscal year in which the municipality's ADMA is zero.

2 Effective Date. This act shall take effect upon its passage.

LBAO

19-0499

Amended 3/8/19

SB 309-FN-LOCAL- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2019-0655s)

AN ACT relative to stabilization grants for education.

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

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

Appropriation

$0

$0

$0

$0

Revenue

$0

$0

$0

$0

Expenditures

$25,356,071

$31,695,089

$38,034,107

$44,373,125

Funding Source:

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

LOCAL:

Revenue

$25,356,071

$31,695,089

$38,034,107

$44,373,125

Expenditures

$0

$0

$0

$0

METHODOLOGY:

This bill, as amended, sets the amount of the stabilization grant portion of the total education grant to municipalities in FY 2020, and beyond, at the FY 2016 level (100% of original FY 2012 amount). Under current law, each year the stabilization grant amount decreases by four percent of the original amount, or approximately $6.3 million statewide. The impact of this bill on state education trust fund expenditures and local revenue is as follows:

STABILIZATION GRANT

Year

Current Law

Proposed

Increase

Stabilization %

Stabilization $

Stabilization %

Stabilization $

FY 2018

92%

$145,797,409

92%

No Change

No Change

FY 2019

88%

$139,458,392

88%

No Change

No Change

FY 2020

84%

$133,119,374

100%

$158,475,445

$25,356,071

FY 2021

80%

$126,780,356

100%

$158,475,445

$31,695,089

FY 2022

76%

$120,441,338

100%

$158,475,445

$38,034,107

FY 2023

72%

$114,102,320

100%

$158,475,445

$44,373,125

AGENCIES CONTACTED:

Department of Education