HB177: relative to the calculation of stabilization grants.

HB 177-FN - AS AMENDED BY THE HOUSE

27Feb2019... 0258h

2019 SESSION

19-0126

06/10

HOUSE BILL 177-FN

AN ACT relative to the calculation of stabilization grants.

SPONSORS: Rep. Ladd, Graf. 4; Rep. Steven Smith, Sull. 11; Rep. Horn, Merr. 2; Rep. Wolf, Merr. 5; Rep. Shaw, Hills. 16; Rep. Hennessey, Graf. 1; Sen. Giuda, Dist 2; Sen. Birdsell, Dist 19

COMMITTEE: Education

AMENDED ANALYSIS

This bill limits the education grant to each municipality for fiscal year 2020 and thereafter to an amount equal to the total education grant to that municipality for the fiscal year in which the grant is calculated plus the amount of the fiscal year 2016 stabilization grant to that 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

27Feb2019... 0258h 19-0126

06/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nineteen

AN ACT relative to the calculation of stabilization grants.

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

1 Determination of Education Grants. Amend RSA 198:41, IV(d) to read as follows:

(d) For fiscal year 2017 [and each fiscal year thereafter] through fiscal year 2019, 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] through fiscal year 2019.

(e) For fiscal year 2020 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 to that municipality for the fiscal year in which the grant is calculated plus the amount of the fiscal year 2016 stabilization grant, if any, distributed to the municipality. 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 60 days after its passage.

LBAO

19-0126

Amended 2/28/19

HB 177-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2019-0258h)

AN ACT relative to the calculation of stabilization grants.

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, beginning in FY 2020, sets the amount of the stabilization grant portion of the total education grant to municipalities at the FY 2016 level. Under current law, each year the stabilization grant amount decreases by four percent of the original amount, or approximately $6.3 million statewide. This bill eliminates the annual reduction and sets the stabilization grant at the level it was in FY 2016. The impact of this bill on state Education Trust Fund expenditures and local revenue is as follows:

STABILIZATION GRANT

Year

Current Law

Proposed

Increase

FY 2020

$133,119,374

$158,475,445

$25,356,071

FY 2021

$126,780,356

$158,475,445

$31,695,089

FY 2022

$120,441,338

$158,475,445

$38,034,107

FY 2023

$114,102,320

$158,475,445

$44,373,125

AGENCIES CONTACTED:

Department of Education