SB 420-FN-A-LOCAL - AS INTRODUCED

2022 SESSION

22-3110

10/04

SENATE BILL 420-FN-A-LOCAL

AN ACT establishing an extraordinary need grant for schools.

SPONSORS: Sen. Hennessey, Dist 1; Sen. Birdsell, Dist 19; Sen. Bradley, Dist 3; Sen. Watters, Dist 4; Sen. Giuda, Dist 2; Sen. Ricciardi, Dist 9; Sen. Avard, Dist 12; Sen. Carson, Dist 14; Sen. Morse, Dist 22; Rep. Shaw, Hills. 16

COMMITTEE: Education

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ANALYSIS

This bill establishes an extraordinary need grant for schools in addition to regular adequate education grants and relief grants.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22-3110

10/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Two

AN ACT establishing an extraordinary need grant for schools.

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

1  New Section; Extraordinary Need Grants for Schools.  Amend RSA 198 by inserting after section 40-e the following new section:

198:40-f Extraordinary Need Grants.

I. In addition to aid for the cost of the opportunity for an adequate education provided under RSA 198:40-a, each year the commissioner shall calculate an extraordinary need grant for schools and provide that amount of aid to a municipality's school districts as follows:

(a)  A municipality with an equalized valuation per pupil eligible to receive a free or reduced-priced meal of $1,000,000 or less shall receive $650 per pupil eligible to receive a free or reduced-price meal in the municipality's ADMR.

(b)  A municipality with an equalized valuation per pupil eligible to receive a free or reduced-price meal between $1,000,001 and $5,999,999 shall receive a grant equal to $0.00013 for each dollar of difference between its equalized valuation per pupil eligible to receive a free or reduced-price meal and $6,000,000, per pupil eligible to receive a free or reduced-price meal in the municipality's ADMR.

(c)  A municipality with an equalized valuation per pupil eligible to receive a free or reduced-price meal of $6,000,000 or more shall not receive an extraordinary need grant.

II. Extraordinary need grants shall be distributed pursuant to RSA 198:42.

III. In this section, "equalized valuation per pupil eligible to receive a free or reduced-price meal" means a municipality's equalized valuation, excluding properties subject to taxation under RSA 82 and RSA 83-F, as determined by the department of revenue administration, that was the basis for the local tax assessment in the determination year, divided by the school district's kindergarten through grade 12 ADMR in the determination year eligible to receive a free or reduced-price meal.

2  New Subparagraph; Determination of Final Adequate Education Grants.  Amend RSA 198:41, I by inserting after subparagraph (d) the following new subparagraph:

(e) Add the municipality's extraordinary need grant pursuant to RSA 198:40-f.

3  Education Aid; Fiscal Year 2023.  Amend 2021, 91:52 to read as follows:

91:52 Conditional Differential Aid Calculation For Pupils Eligible for a Free or Reduced Price Meal; Fiscal Year 2023.

I.  If, as of any of the dates set forth in RSA 198:41, V, VI, or VII, either (a) the state of New Hampshire is in a declared state of emergency pursuant to RSA 4:45 as it relates to the COVID-19 pandemic or (b) the U.S. Department of Agriculture has not rescinded the Child Nutrition Covid-19 Waivers enacted in response to the pandemic, or both, then the department of education shall, in consultation with the governor, determine whether the alternative differential aid calculation set forth in paragraph II is required for fiscal year 2023 when making the required estimate or final determination described in RSA 198:41, V, VI, or VII as applicable.

II.  Upon making a determination that the alternative differential aid calculation applies pursuant to paragraph I, the department of education shall divide each pupil in the ADMA who is eligible for a free or reduced price meal by the average daily member in [attendance (ADMA)] residence (ADMR), defined in RSA 198:38, for each district and town for school year 2019-2020.  The percentage shall be applied to the [ADMA] ADMR for school year 2021-2022 to establish a new calculation of [ADMA] ADMR for who is eligible for a free or reduced price meal.  The greater of the [ADMA] ADMR of pupils who are eligible for a free or reduced price meal for school year 2021-2022 and the new calculation based on the 2019-2020 school year percentage shall be used to calculate the differential aid under RSA 198:40-a, II(b) [and], relief aid under RSA 198:40-e, and extraordinary need grants under RSA 198:40-f.

4  Effective Date.  This act shall take effect July 1, 2022.

LBA

22-3110

Revised 12/29/21

SB 420-FN-A-LOCAL- FISCAL NOTE

AS INTRODUCED

AN ACT establishing an extraordinary need grant for schools.

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

METHODOLOGY:

This bill establishes extraordinary need grants for schools within the education funding adequacy formula. This grant is calculated based on equalized valuation per free and reduced-price meal pupils (EVFRP). An EVFRP of $1 million or less awards a municipality $650 per F&R pupil, while municipalities with an EVFRP of $6 million or greater are not eligible. Municipalities with an EVFRP between $1 million and $6 million receive a grant between $650 and $150 on a sliding scale basis for each F&R pupil. The Department of Education has provided the following estimates of this bill’s impact on state education trust fund expenditures and local revenue for FY 2023 and FY 2024 (FY 2025 and beyond is indeterminable due to variability in pupil and equalized valuation data):

* Includes Statewide Education Property Tax (SWEPT) raised and retained locally

AGENCIES CONTACTED:

Department of Education