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RSA 198:41 · Determination of Education Grants

Title
XV: EDUCATION
Chapter
198 · SCHOOL MONEY
Status
current
Official source linked
Yes
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198:41 Determination of Education Grants. –

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I.

Except for municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the total education grant for the municipality as follows:

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(a)

Add the per pupil cost of providing the opportunity for an adequate education for which each pupil is eligible pursuant to RSA 198:40-a, I-III, and from such amount; [Paragraph I(b) effective until July 1, 2026; see also paragraph I(b) set out below.]

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(b)

Subtract the amount of the education tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:8 for the next tax year; and [Paragraph I(b) effective July 1, 2026; see also paragraph I(b) set out above.]

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(b)

Subtract the amount of the education tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:8 for the next tax year; [Paragraph I(c) effective until July 1, 2026; see also paragraph I(c) set out below.]

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(c)

Add the municipality's extraordinary need grant pursuant to RSA 198:40-f. [Paragraph I(c) effective July 1, 2026 until July 1, 2027; see also paragraph I(c) set out above and below.]

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(c)

Add the municipality's extraordinary need grant pursuant to RSA 198:40-f; and [Paragraph I(c) effective July 1, 2027; see also paragraph I(c) set out above.]

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(c)

Add the municipality's extraordinary need grant pursuant to RSA 198:40-f. [Paragraph I(d) effective July 1, 2026 until July 1, 2027; see also paragraph I(d) set out below.

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(d)

Add the municipality's fiscal capacity disparity aid grant pursuant to RSA 198:40-g. [Paragraph I(d) effective July 1, 2027; see also paragraph I(d) set out above.]

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(d)

Add the municipality's fiscal capacity disparity aid grant pursuant to RSA 198:40-g; and [Paragraph I(e) effective July 1, 2027.]

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(e)

For municipalities with a total ADMR of 5,000 or more, subtract the amount necessary to limit the total additional targeted aid to $3,750 per pupil in the municipality's ADMR. For the purpose of this paragraph, additional targeted aid shall be the sum of a municipality's extraordinary needs grant and fiscal capacity disparity aid grant. I-a. For municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the total education grant for each municipality as the lesser of the 2 following calculations:

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(a)

The amount calculated in accordance with paragraph I of this section; or

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(b)

The total amount paid for items of current education expense as determined by the department of education minus the amount of the education tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:8 for the next tax year.

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(b)

Subtract the amount of the education tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:8 for the next tax year;

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II.

For fiscal year 2024 and fiscal year 2025, the department of education shall distribute a hold harmless grant equal to any amount in which a municipality's adequacy grant is less than 104 percent of the fiscal year 2024 preliminary estimate for the adequacy grant as of November 15, 2022. No municipality with a current adequacy grant amount that exceeds the fiscal year 2024 preliminary estimate shall receive a hold harmless grant. No hold harmless grant shall be distributed to any municipality in which the municipality's education property tax warrant pursuant to RSA 76:8 exceeds the total cost of an adequate education.

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III.

Beginning in fiscal year 2026, the hold harmless grant calculated under paragraph II shall decrease as a percent of the amount awarded under the following schedule:

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(1)

80 percent of the calculated fiscal year 2025 hold harmless grant shall be awarded for fiscal year 2026 and fiscal year 2027.

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(2)

60 percent of the calculated fiscal year 2025 hold harmless grant shall be awarded for fiscal year 2028 and fiscal year 2029.

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(3)

40 percent of the calculated fiscal year 2025 hold harmless grant shall be awarded for fiscal year 2030 and fiscal year 2031.

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(4)

20 percent of the calculated fiscal year 2025 hold harmless grant shall be awarded for fiscal year 2032 and fiscal year 2033.

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(5)

No hold harmless grant shall be awarded for fiscal year 2034 and each year thereafter.

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IV.

The department shall use the best available data and methods to estimate ADMR and education grants by November 15 of the year preceding the school year for which aid is determined.

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V.

The department shall produce a revised estimate of grants using actual determination year data for the purpose of settling municipal tax rates. A municipality's grant estimate shall not be less than 95 percent of the estimate reported pursuant to paragraph IV. The commissioner of the department of education shall provide the estimate for the current fiscal year to the commissioner of the department of revenue administration no later than October 1 of each year. VI.The department shall make a final determination of grant amounts by October 1. A municipality's grant estimate shall not be less than 95 percent of the estimate reported pursuant to paragraph IV. The department shall adjust the April grant disbursement required pursuant to RSA 198:42 so that the total amount disbursed for the fiscal year shall match the final grant determination. VI-a. The final determination of the grant amount can be modified after October 1 after a vote in the affirmative by the state board under the following conditions:

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(a)

The department or a school district petitioned the state board to modify the October 1 grant determination prior to January 15 of the same fiscal year and the state board votes in the affirmative to accept the petition by February 15;

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(b)

The change being considered within the scope of the petition shall have a total adequacy dollar impact greater than $10,000 for at least one municipality; and

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(c)

The petition specifically identifies the municipality or municipalities requiring change in the final grant amount and the amount being modified.

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VII.

Reports of grant determinations for municipalities required pursuant to paragraphs IV- VI shall be available to the public by the date specified in paragraphs IV- VI, and the department shall make available a report for multi-town school districts and municipalities with multiple school districts. The department of education shall provide the department of revenue administration the information needed to set tax rates. Source. 1999, 17:41; 338:10. 2003, 241:7. 2004, 200:8; 244:4. 2005, 257:7, 8. 2006, 6:1, 2. 2007, 270:3, eff. June 29, 2007. 2008, 173:9, eff. July 1, 2009; 173:17, I, eff. June 30, 2009; 173:17, III, eff. July 1, 2011. 2011, 258:3, eff. July 1, 2011. 2013, 4:1, eff. Mar. 18, 2013; 144:120, eff. July 1, 2013. 2015, 276:139, eff. July 1, 2015; 276:140, eff. July 1, 2017. 2016, 8:4, 5, eff. Mar. 16, 2016; 85:9, eff. July 18, 2016. 2019, 346:235, eff. July 1, 2020; 346:236, III, eff. July 1, 2021; 346:238, eff. July 1, 2019. 2021, 91:57, eff. July 1, 2021. 2022, 175:7, eff. July 1, 2022; 318:2, eff. July 1, 2022. 2023, 79:156, eff. July 1, 2023. 2024, 332:2, eff. Oct. 1, 2024. 2025, 141:83, eff. July 1, 2025; 142:2, eff. July 1, 2026; 142:3, eff. July 1, 2027.

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Source note

Source. 1999, 17:41; 338:10. 2003, 241:7. 2004, 200:8; 244:4. 2005, 257:7, 8. 2006, 6:1, 2. 2007, 270:3, eff. June 29, 2007. 2008, 173:9, eff. July 1, 2009; 173:17, I, eff. June 30, 2009; 173:17, III, eff. July 1, 2011. 2011, 258:3, eff. July 1, 2011. 2013, 4:1, eff. Mar. 18, 2013; 144:120, eff. July 1, 2013. 2015, 276:139, eff. July 1, 2015; 276:140, eff. July 1, 2017. 2016, 8:4, 5, eff. Mar. 16, 2016; 85:9, eff. July 18, 2016. 2019, 346:235, eff. July 1, 2020; 346:236, III, eff. July 1, 2021; 346:238, eff. July 1, 2019. 2021, 91:57, eff. July 1, 2021. 2022, 175:7, eff. July 1, 2022; 318:2, eff. July 1, 2022. 2023, 79:156, eff. July 1, 2023. 2024, 332:2, eff. Oct. 1, 2024. 2025, 141:83, eff. July 1, 2025; 142:2, eff. July 1, 2026; 142:3, eff. July 1, 2027.

Source history

  • 1999, 17:41; 338:10
  • 2003, 241:7
  • 2004, 200:8; 244:4
  • 2005, 257:7, 8
  • 2006, 6:1, 2
  • 2007, 270:3, eff. June 29, 2007
  • 2008, 173:9, eff. July 1, 2009; 173:17, I, eff. June 30, 2009; 173:17, III, eff. July 1, 2011
  • 2011, 258:3, eff. July 1, 2011
  • 2013, 4:1, eff. Mar. 18, 2013; 144:120, eff. July 1, 2013
  • 2015, 276:139, eff. July 1, 2015; 276:140, eff. July 1, 2017
  • 2016, 8:4, 5, eff. Mar. 16, 2016; 85:9, eff. July 18, 2016
  • 2019, 346:235, eff. July 1, 2020; 346:236, III, eff. July 1, 2021; 346:238, eff. July 1, 2019
  • 2021, 91:57, eff. July 1, 2021
  • 2022, 175:7, eff. July 1, 2022; 318:2, eff. July 1, 2022
  • 2023, 79:156, eff. July 1, 2023
  • 2024, 332:2, eff. Oct. 1, 2024
  • 2025, 141:83, eff. July 1, 2025; 142:2, eff. July 1, 2026; 142:3, eff. July 1, 2027

Related materials

Bill relationships

  • 2026 HB1787 reference

    posits into the education trust fund made under paragraph II shall exclusively fund, in whole or in part, education grants as determined by the department of education pursuant to RSA 198:41, costs associated with providing tax bills pursuant to RSA 76:11-a, and homeowners property tax relief pursuant to RSA 198:57. 2 Taxation; Apportionment, Assessment and Abatement of Taxes; Commissioner's Warrant. A

  • 2026 HB1787-FN reference

    posits into the education trust fund made under paragraph II shall exclusively fund, in whole or in part, education grants as determined by the department of education pursuant to RSA 198:41, costs associated with providing tax bills pursuant to RSA 76:11-a, and homeowners property tax relief pursuant to RSA 198:57. 2 Taxation; Apportionment, Assessment and Abatement of Taxes; Commissioner's Warrant. A

  • 2026 HB1799 add · effective 2026-11-01

    received to the department of revenue administration for deposit in the education trust fund established in RSA 198:39 for use by the state for making education grants pursuant to RSA 198:41 and property tax homeowner relief payments pursuant to RSA 198:57. Such payments by municipalities shall be made in 4 quarterly installments in accordance with schedules, standards, and procedures established by rules

  • 2026 HB1799 amend · effective 2026-11-01

    t paid for items of current education expense as determined by the department of education. 7 New Section; Education; School Money; Adequate Education Funding Commission. Amend RSA 198 by inserting after section 39 the following new section: 198:39-a Adequate Education Funding Commission. I. There is established a commission to study and identify, consistent with RSA 193-E:1, transition and re

  • 2026 HB1799-FN amend · effective 2026-11-01

    t paid for items of current education expense as determined by the department of education. 7 New Section; Education; School Money; Adequate Education Funding Commission. Amend RSA 198 by inserting after section 39 the following new section: 198:39-a Adequate Education Funding Commission. I. There is established a commission to study and identify, consistent with RSA 193-E:1, transition and re

  • 2026 HB1799-FN add · effective 2026-11-01

    received to the department of revenue administration for deposit in the education trust fund established in RSA 198:39 for use by the state for making education grants pursuant to RSA 198:41 and property tax homeowner relief payments pursuant to RSA 198:57. Such payments by municipalities shall be made in 4 quarterly installments in accordance with schedules, standards, and procedures established by rules

  • 2026 HB1800 repeal · effective 2027-07-01

    nt. This review should occur no less frequently than every 10 years. 4 Repeals. The following are repealed: I. RSA 198:40-f, relative to extraordinary need grants. II. RSA 198:41, I(c), relative to calculations used to determine education grants. 5 Effective Date. This act shall take effect July 1, 2027. LBA 26-3222 12/16/25 HB 1800-FN- FISCAL NOTE AS INTRODUCED AN ACT relative

  • 2026 HB1800-FN repeal · effective 2027-07-01

    nt. This review should occur no less frequently than every 10 years. 4 Repeals. The following are repealed: I. RSA 198:40-f, relative to extraordinary need grants. II. RSA 198:41, I(c), relative to calculations used to determine education grants. 5 Effective Date. This act shall take effect July 1, 2027. LBA 26-3222 12/16/25 HB 1800-FN- FISCAL NOTE AS INTRODUCED AN ACT relative

  • 2026 HB1824 reference

    At no time shall the total outstanding amount of loans made under this subdivision exceed 75 percent of total adequacy funding to be distributed to a school district, pursuant to RSA 198:41, in any given year. 194:65 Certification of Disclosure. Notwithstanding any other provision of law to the contrary, the school district adequacy revolving loan fund shall be considered an allowable use of the educa

  • 2026 HB1824 amend

    acted by the Senate and House of Representatives in General Court convened: 1 New Sections; School District Financial Distress; State Assistance; Municipal Assistance. Amend RSA 198 by inserting after section 20-d the following new sections: 198:20-e School District Financial Distress; State Assistance. This section provides for the financial recovery of school districts that are in financial

  • 2026 HB1824-FN amend

    acted by the Senate and House of Representatives in General Court convened: 1 New Sections; School District Financial Distress; State Assistance; Municipal Assistance. Amend RSA 198 by inserting after section 20-d the following new sections: 198:20-e School District Financial Distress; State Assistance. This section provides for the financial recovery of school districts that are in financial

  • 2026 HB1824-FN reference

    At no time shall the total outstanding amount of loans made under this subdivision exceed 75 percent of total adequacy funding to be distributed to a school district, pursuant to RSA 198:41, in any given year. 194:65 Certification of Disclosure. Notwithstanding any other provision of law to the contrary, the school district adequacy revolving loan fund shall be considered an allowable use of the educa

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