2003 SESSION

03-0044

04/09

HOUSE BILL 641-FN-A-LOCAL

COMMITTEE: Education

ANALYSIS

This bill:

I. Revises the weighted pupil formula for pupils eligible to receive a free or reduced price meal.

II. Provides for supplemental assistance to needy school districts.

III. Provides that beginning July 1, 2004, and every fiscal year thereafter, a municipality shall receive an adequate education cost per pupil amount plus supplemental assistance that is greater than or equal to the adequate education cost per pupil amount such municipality received for the fiscal year ending June 30, 2004.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0044

04/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

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

1 School Money; Definitions; Weighted Pupils. RSA 198:38, VII(f) is repealed and reenacted to read as follows:

(f) Additional weights based on pupils eligible to receive a free or reduced-price meal shall be calculated by multiplying each municipality's elementary average daily membership in residence by the fraction of the district's pupils eligible to receive a free or reduced-price meal multiplied by:

(1) If less than 15 percent of the district's pupils are eligible to receive a free or reduced-price meal, zero.

(2) If at least 15 percent but less than 20 percent of the district's pupils are eligible to receive a free or reduced-price meal, 0.11.

(3) If at least 20 percent but less than 25 percent of the district's pupils are eligible to receive a free or reduced-price meal, 0.22.

(4) If 25 percent or more of the district's pupils are eligible to receive a free or reduced-price meal, 0.33.

2 School Money; Definitions. Amend RSA 198:38, XI to read as follows:

XI. "Transportation costs" means the costs of transporting pupils to and from school [and other school activities] pursuant to RSA 189:6, less any applicable revenue from other school districts, individuals, organizations, or federal aid reported by school districts on the [MS-25] DOE-25 form.

3 New Section; School Money; Supplemental Assistance to Needy School Districts. Amend RSA 198 by inserting after section 40 the following new section:

198:40-a Supplemental Assistance to Needy School Districts. The state shall be responsible for providing supplemental assistance to needy school districts. The department shall determine the amount of supplemental assistance to be distributed pursuant to the following formula:

I. Divide each municipality's total equalized valuation by its average daily membership in residence. The result shall be the municipal valuation per pupil.

II. From the list of municipal valuations per pupil calculated in paragraph I where the municipal valuation per pupil is greater than zero, determine the median. This result shall be the state median municipal valuation per pupil.

III. For each of the municipalities where the municipal valuation per pupil is less than the state median municipal valuation per pupil, subtract the municipal valuation per pupil from the state median municipal valuation per pupil and divide the result by the state median valuation per pupil. Multiply this result by the municipality's average daily membership in residence. This shall be the municipal valuation differential.

IV. Determine the sum of all municipal valuation differentials.

V. For each of the municipalities where the municipal valuation per pupil is less than the state median valuation per pupil, divide the municipal valuation differential by the sum of all municipal valuation differentials determined in paragraph IV and multiply the result by 37,500,000. The product shall be the amount of supplemental assistance distributed to each school district.

VI. Supplemental assistance distributed under this section shall be in addition to any adequate education grant amounts distributed to a school district.

4 New Section; Adequate Education Grants. Amend RSA 198 by inserting after section 41 the following new section:

198:41-a Adequate Education Grants. Beginning July 1, 2004, and every fiscal year thereafter, the total amount received by a municipality for adequate education cost per pupil plus any supplemental assistance to needy school districts provided under 198:40-a shall be equal to or greater than the adequate education cost per pupil received by a municipality for the fiscal year ending June 30, 2004.

5 School Money; Maintenance of Local Control Amended. Amend RSA 198:48 to read as follows:

198:48 Maintenance of Local Control. Distributions under RSA [198:42] 198:40 [depend only on weighted average daily membership in residence and the per pupil adequacy cost amounts as determined in this subdivision and] are independent of how the municipalities decide to spend the distributions or other funds they may raise for education. Notwithstanding any other provision of law, nothing in this subdivision is intended in any way to limit or control how school districts operate or spend their budgets except that [adequate education grants must be expended for educational purposes.] The amounts determined in RSA 198:40 shall only be expended for educational purposes, and shall not be transferred or diverted to any other purpose.

6 Effective Date. This act shall take effect July 1, 2003.

LBAO

03-0044

1/27/03

HB 641-FN-A-LOCAL - FISCAL NOTE

FISCAL IMPACT:

METHODOLOGY: