sb 0302

CHAPTER 200

SB 302-FN-LOCAL – FINAL VERSION

AN ACT making technical corrections to the education funding formula.

SPONSORS: Sen. Gatsas, Dist 16; Sen. Morse, Dist 22; Sen. O’Hearn, Dist 12; Rep. King, Coos 1

I. Establishes the education property tax rate at $3.33 for the 2005 fiscal year.

II. For the 2006 fiscal year and every fiscal year thereafter, requires the commissioner of the department of revenue administration to set the education property tax rate at a level sufficient to generate revenue equal to the revenue generated in the previous fiscal year.

III. Revises the formula for determining adequate education costs and adequate education grants.

V. Provides targeted aid grants for certain property poor municipalities based on the relationship between the statewide average equalized valuation per pupil and the municipality’s equalized valuation per pupil.

VI. Effective June 30, 2004, repeals certain sections of HB 608-FN-LOCAL of the 2003 legislative session, relative to the statewide enhanced education tax.

VII. Provides that the education funding formula for the 2004 fiscal year shall take effect if any provision of sections 1-15 of SB 302-FN-LOCAL of the 2004 legislative session is found by the New Hampshire supreme court to be unconstitutional and invalid.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT making technical corrections to the education funding formula.

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

200:1 Education Property Tax; Version Effective July 1, 2004. RSA 76:3 is repealed and reenacted to read as follows:

76:3 Education Property Tax. An annual education property tax at the uniform rate of $3.33 on each $1000 of the value of taxable property is hereby imposed on all persons and property taxable pursuant to RSA 72 and RSA 73, except property subject to tax under RSA 82 and RSA 83-F.

200:2 Education Property Tax; Version Effective July 1, 2005. RSA 76:3 is repealed and reenacted to read as follows:

76:3 Education Property Tax. Beginning July 1, 2005, and every fiscal year thereafter, the commissioner of the department of revenue administration shall set the education property tax rate at a level sufficient to generate revenue equal to the statewide education property tax revenue generated in the previous fiscal year. Such rate shall be imposed on all persons and property taxable pursuant to RSA 72 and RSA 73, except property subject to tax under RSA 82 and RSA 83-F. The education property tax rate shall be effective for the fiscal year in which the calculation is made.

200:3 School Money; Definitions. RSA 198:38 is repealed and reenacted to read as follows:

II. “School district” means school district as defined in RSA 194:1 or RSA 195:1.

III. “Elementary school” means a school with any of the grades kindergarten through 8.

IV. “Average per pupil adequacy cost” means the amount as determined in accordance with RSA 198:40.

V. “Average daily membership in attendance” means average daily membership in attendance, as defined in RSA 189:1-d, III, as of September 30^th of the second school year preceding the year in which the calculation is made.

VI. “Average daily membership in residence” means the average daily membership in residence, as defined in RSA 189:1-d, IV, as of September 30^th of the second school year preceding the year in which the calculation is made, provided that no kindergarten pupil shall count as more than 1/2 day attendance per calendar day.

VII. “Adequate education cost” means the amount calculated for a municipality in accordance with RSA 198:41. In a cooperative school district, the adequate education cost shall equal the sum of the adequate education costs of the municipalities whose pre-existing school districts constitute the cooperative school district.

200:4 School Money; Education Trust Fund. Amend the introductory paragraph of RSA 198:39, I to read as follows:

I. The state treasurer shall establish an education trust fund in the treasury. Moneys in such fund shall not be used for any purpose other than to distribute adequate education grants to municipalities’ school districts pursuant to RSA 198:42, and to provide [~~statewide enhanced education property tax hardship relief under RSA 198:55]~~ low and moderate income homeowners property tax relief under RSA 198:56-198:61. The state treasurer shall deposit into this fund immediately upon receipt:

200:5 School Money; Determination of Average Per Pupil Adequacy Cost; Fiscal Year 2004. RSA 198:40 is repealed and reenacted to read as follows:

I. Beginning July 1, 1999, and every biennium thereafter, the average per pupil adequacy cost shall be established using the following formula:

(a) The department shall calculate the cost per pupil for each school district that operates an elementary school by subtracting from the total expenditures at the elementary school level, tuition to other school districts or approved educational programs, capital costs and debt service on such costs, special education costs, food service costs, transportation costs, adult/continuing education and community services costs, and federal revenues not otherwise deducted. For each school district, this amount shall be divided by the average daily membership in attendance at the elementary school level to attain a cost per pupil.

(b) The department shall identify those school districts where 40 to 60 percent of the elementary pupils enrolled in the grades tested on the day testing began, achieved a scaled score, in the statewide educational improvement and assessment program administered pursuant to RSA 193-C, in all areas tested, equivalent to performance at the basic level or above. From these school districts, the department shall then identify those school districts that have the lowest cost per pupil as calculated pursuant to subparagraph I(a) and which represent, as nearly as possible, 50 percent of the average daily membership in attendance at the elementary level of the school districts identified.

(c) The department shall multiply the cost per pupil of each school district identified in subparagraph I (b) by the average daily membership in attendance at each of the selected school districts, and add the results across all districts selected. This sum shall then be divided by the total average daily membership in attendance at the elementary school level in all of the selected school districts and the result shall be multiplied by .9025 to attain the average per pupil adequacy cost.

II. For each fiscal year, the statewide cost of an adequate education shall be determined by:

(a) Multiplying the average per pupil adequacy cost by the statewide average daily membership in residence; and

(b) Adding the total statewide targeted aid for low income pupils and the total statewide targeted aid for property poor municipalities, as determined in RSA 198:41, to the result obtained in subparagraph II (a).

200:6 School Money; Determination of Average Per Pupil Adequacy Cost; Version Effective July 1, 2005. The introductory paragraph of RSA 198:40, I is repealed and reenacted to read as follows:

I. Beginning July 1, 1999, the average per pupil adequacy cost shall be established using the following formula:

200:7 New Subparagraph; Determination of Average Per Pupil Adequacy Cost; Consumer Price Index Adjustment; Version Effective July 1, 2005. Amend RSA 198:40, I by inserting after subparagraph (c) the following new subparagraph:

(d) For each biennium beginning July 1, 2005 and every biennium thereafter, the average per pupil adequacy cost calculated for the previous biennium shall be multiplied by 2 times the average annual percentage rate of inflation for the immediately preceding 4 calendar years based on the northeast region consumer price index for all urban consumers, as published by the Bureau of Labor Statistics, United States Department of Labor.

200:8 School Money; Targeted Aid; Determination of Adequate Education Grants. RSA 198:41 is repealed and reenacted to read as follows:

I. A municipality shall receive aid for low income pupils which shall be calculated by multiplying the average per pupil adequacy cost, determined in RSA 198:40, I, by 0.6 and multiplying the result by the number of pupils in the municipality eligible to receive a free or reduced-price meal as reported to the department.

(a)(1) Divide the total statewide equalized valuation of all municipalities as determined by the department of revenue administration, including property subject to taxation under RSA 82

and RSA 83-F, from the second year preceding the year in which the calculation is made, by the total statewide average daily membership in residence. The result shall be the statewide average equalized valuation per pupil.

(2) Divide the equalized valuation of all property in a municipality as determined by the department of revenue administration, including property subject to taxation under RSA 82 and

RSA 83-F, from the second school year preceding the year in which the calculation is made, by the municipality’s average daily membership in residence. The result shall be the municipality’s equalized valuation per pupil.

(b) In any fiscal year, if a municipality’s equalized valuation per pupil is less than or equal to 90 percent of the statewide average equalized valuation per pupil, such municipality shall receive aid as a property poor municipality as follows:

(1) Multiply the statewide average equalized valuation per pupil by 0.9 and subtract the municipality’s equalized valuation per pupil. Multiply the result by the municipality’s average daily membership in residence to obtain the municipality’s adjusted equalized valuation per pupil.

(2) Divide the municipality’s adjusted equalized valuation per pupil by the sum total of adjusted equalized valuations per pupil statewide. Multiply the result by the statewide amount of aid for low income pupils in a fiscal year to obtain the municipality’s aid as a property poor municipality.

(c) In every fiscal year, the amount distributed as targeted aid for property poor municipalities under this paragraph shall be equal to the amount distributed as targeted aid for low income pupils under paragraph I of this section.

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

(a) Multiply the average per pupil adequacy cost by the average daily membership in residence for the municipality; and

(b) Add to the product of subparagraph (a), the amount of targeted aid for low income pupils and the amount of targeted aid for property poor municipalities which a municipality is entitled to receive as calculated under this section; and

(c) Subtract from the sum of subparagraph (b) the amount of the education property tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year.

IV. For municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department shall determine the amount of the adequate education grant for each municipality as the lesser of the 2 following calculations:

(b) The total amount paid for items of current education expense as determined by the department minus the amount of the education property tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year.

200:9 School Money; Distribution Schedule of Adequate Education Grants. RSA 198:42, II is repealed and reenacted to read as follows:

II. For the fiscal year beginning July 1, 2004, and every fiscal year thereafter the amount necessary to fund the grants under RSA 198:41 is hereby appropriated from the education trust fund created under RSA 198:39 to the department. The governor is authorized to draw a warrant from the education trust fund to satisfy the state’s obligation under this section. Such warrant for payment shall be issued regardless of the balance of funds available in the education trust fund. If the balance in the education trust fund, after the issuance of any such warrant, is less than zero, the commissioner of the department of administrative services shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the distribution of adequate education grants.

200:10 Cooperative School Districts; Certification of District Taxes. Amend RSA 195:14, I(c)-(d) to read as follows:

(c) The commissioner of revenue administration shall certify to the state department of education the total amount to be apportioned among the pre-existing school districts. Such total shall include the adequate education cost for the district under RSA 198:38, [~~XII~~] VII, and the amount above the cost of an adequate education to be assessed and collected as local educational taxes.

(d) The state department of education shall determine the proportional share of the costs above adequacy to be assessed as local education taxes as follows:

[~~(i)~~] (1) First, the department shall determine each pre-existing district’s proportional share of the total amount to be apportioned based on the cooperative school district formula.

[~~(ii)~~] (2) Second, the department shall then deduct each pre-existing school district’s adequate education cost under RSA 198:38, [~~XII~~] VII, from its proportional share of the total

[~~(iii)~~] (3) Third, the department shall notify the commissioner of revenue administration of its determinations.

[~~(iv)~~] (4) If the amount determined in subparagraph [~~(ii)~~] (2) for any pre-existing district is less than zero, the department shall reduce the adequate education grant payable to the cooperative district under RSA 198:42 by the difference between the amount determined in subparagraph [~~(i)~~] (1) and the pre-existing district’s adequate education cost under RSA 198:38, [~~XII~~] VII.

200:11 Cooperative School Districts; State Aid. Amend RSA 195:15 to read as follows:

195:15 State Aid. The state aid to which a cooperative elementary and/or secondary district shall be entitled shall be the total of those shares of the aid to which the pupils attending the cooperative district would have entitled the pre-existing districts, had they remained in the pre-existing districts. For the purposes of crediting the cooperative district’s adequate education cost to the pre-existing districts, each such pre-existing district shall have its adequate education cost under RSA 198:38, [~~XII~~] VII credited against its share of the cooperative school district budget. However,

cooperative school districts formed by 2 or more pre-existing districts whose boundaries approximate those of a single township in which they are located shall be treated as a single school district for the purposes of this section.

200:12 School Money; Maintenance of Local Control. Amend RSA 198:48 to read as follows:

198:48 Maintenance of Local Control. Distributions under RSA 198:42 [~~depend only on weighted average daily membership in residence and the per pupil adequacy cost amounts as determined in this subdivision~~] are based on adequate education costs determined in RSA 198:40 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. Adequate education grants and hardship grants shall not be considered unanticipated funds under RSA 198:20-b.

200:13 School Money; Duties of the Department of Education and the State Board of Education. Amend RSA 198:44, I to read as follows:

I. The department of education shall, on or before September 30 of each year, collect from the school districts final data concerning all aspects of student attendance for the school year ending June 30 of that year necessary to establish the average daily membership[,] and average daily membership in residence[~~, and weighted average daily membership in residence~~], including the municipality of residence for each pupil for that year. The department of education shall submit a report by December 31 to the speaker of the house of representatives and the senate president to be used for purposes of determination by the legislature of the appropriation to the education trust fund. A copy of such report shall, at the same time, be given to the department of revenue administration.

200:14 School Districts; Unanticipated Funds Available. Notwithstanding RSA 198:20-b and RSA 198:48, for the fiscal year ending June 30, 2005, a school district may accept and expend unanticipated funds from the education trust fund which may become available during the year as a result of adjustments to the calculation of adequate education grant amounts.

200:15 School Districts; Special Meetings. Notwithstanding RSA 197:3, for the fiscal year ending June 30, 2005, a school district at a special meeting may make adjustments to the district’s operating budget due to adjustments to the calculation of adequate education grant amounts.

200:16 Education Property Tax; Rate Established; Contingent Version. RSA 76:3 is repealed and reenacted to read as follows:

76:3 Education Property Tax. An annual education property tax at the uniform rate of $4.92 on each $1000 of the value of taxable property is hereby imposed on all persons and property taxable pursuant to RSA 72 and RSA 73, except property subject to tax under RSA 82 and RSA 83-F.

200:17 Assessment; Commissioner’s Warrant; Commissioner’s Report; Contingent Versions. RSA 76:8 and 76:9 are repealed and reenacted to read as follows:

I. The commissioner of revenue administration shall annually calculate the proportion of education property tax to be raised by each municipality by multiplying the uniform education property tax rate by the total equalized value of all property in the municipality as determined under RSA 21-J:3, XIII for the preceding year, except property taxable under RSA 82 or RSA 83-F.

II. The commissioner shall issue a warrant under the commissioner’s hand and official seal for the amount computed in paragraph I to the selectmen or assessors of each municipality by December 15 directing them to assess such sum and pay it to the municipality for the use of the school district or districts and, if there is an excess education tax payment due pursuant to RSA 198:46, directing them to assess the amount of the excess payment and pay it to the department of revenue administration for deposit in the education trust fund. Such sums shall be assessed at such times as may be prescribed for other taxes assessed by such selectmen or assessors of the municipality.

III. Municipalities are authorized to assess local property taxes necessary to fund school district appropriations not funded by the education property tax, by distributions from the education trust fund under RSA 198:39, or by other revenue sources.

76:9 Commissioner’s Report. The commissioner of revenue administration shall report to the governor, the speaker of the house of representatives, the president of the senate, and the commissioner of education each year on or before October 1, a statement of the education property tax warrants to be issued for the tax year commencing April 1 of the succeeding year.

200:18 Utility Property Tax; Exemption; Contingent Version. RSA 83-F:9 is repealed and reenacted to read as follows:

83-F:9 Exemption From State Education Property Tax. Persons and property subject to taxation under this chapter shall not be subject to tax under RSA 76:3; provided, however, that nothing in this chapter shall be construed to exempt such persons or property from local school, municipal, district, or county taxation under RSA 76.

200:19 School Boards, Teachers; Definitions Amended; Contingent Version. RSA 189:1-d is repealed and reenacted to read as follows:

I. “Attendance” means full-time participation in a program of instruction under the direction of a teacher employed by the school district. Educationally disabled home educated pupils educated at school district expense under the direction of a teacher employed by the school district shall be included.

II. “Membership” means pupils of whom attendance is expected, whether a pupil is present or absent on any given day.

III. “Average daily membership in attendance” means the aggregate half-day membership of pupils attending schools operated by a school district divided by the number of half-days of instruction offered. The average daily membership in attendance for preschool and kindergarten pupils shall be divided by the number of instructional days offered to higher-level elementary grades.

IV. “Average daily membership in residence” means the average daily membership in attendance of pupils who are legal residents of the school district pursuant to RSA 193:12 or RSA 193:27, IV and are attending any public school, or who are attending any charter school or private school program approved by the department of education at the expense of the school district.

200:20 School Money; Definitions; Education Trust Fund; Determination of Per Pupil Adequate Education Cost; Determination of Adequate Education Grants; Contingent Version. RSA 198:38-41 are repealed and reenacted to read as follows:

II. “School district” means school district as defined in RSA 194:1 or RSA 195:1.

III. “Elementary school” means a school with any of the grades kindergarten through 8.

V. “Base expenditure per pupil” for each school district that operates an elementary school means the amounts calculated in accordance with RSA 198:40, I(a).

VI. “Average base cost per pupil of an elementary school pupil” means the amount as determined in accordance with RSA 198:40.

(d)(1) 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 percentage of elementary pupils eligible to receive a free or reduced-price meal in the district of residence, and multiplied by:

(A) If the district percent is less than or equal to the percentage of elementary pupils eligible to receive a free or reduced-price meal statewide multiplied by 0.85, zero.

(B) If the district percentage is greater than the percentage of elementary pupils eligible to receive a free or reduced-price meal statewide multiplied by 0.85, the lesser of 1.0 or a number equal to 5 times the difference between the district percentage and the state average percentage multiplied by 0.85.

(2) If the elementary average daily membership of the district of residence is less than 10, the percentage of elementary pupils eligible to receive a free or reduced-price meal shall be equal to the percentage eligible in that district in which the majority of the elementary pupils attend.

(e) Each pupil who is home educated pursuant to a program approved under RSA 193-A shall be added as follows:

(1) 0.1 for each home educated pupil participating in a public school activity; and

(2) An additional 0.15 for each academic course taken in a public school, provided that no co-curricular activity, as defined by the department of education, shall count as an academic course under this subparagraph.

VIII. “Educationally disabled child” means an educationally disabled child as defined in RSA 186-C:2, I.

IX. “Average daily membership in attendance” means average daily membership in attendance as defined in RSA 189:1-d, III.

X. “Average daily membership in residence” and “resident pupils” mean the average daily membership in residence as defined in RSA 189:1-d, IV except that no kindergarten pupil shall count as more than 1/2 day attendance per calendar day.

XI. “Transportation costs” means the cost of transporting pupils in kindergarten through grade 8, excluding educationally disabled pupils, to and from school as reported by school districts on the DOE-25 form.

XII. “Adequate education cost” means the amount calculated for a municipality in accordance with RSA 198:41, I(a) and (b). In a cooperative school district, the adequate education cost shall equal the sum of the adequate education costs of the municipalities whose pre-existing school districts constitute the cooperative school district.

I. The state treasurer shall establish an education trust fund in the treasury. Moneys in such fund shall not be used for any purpose other than to distribute adequate education grants to municipalities’ school districts pursuant to RSA 198:42, and to provide low and moderate income homeowners property tax relief under RSA 198:56-198:61. The state treasurer shall deposit into this fund immediately upon receipt:

(a) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA 77-A:20-a, relative to business profits taxes.

(b) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA 77-E:14, relative to business enterprise tax.

(c) Funds collected and paid over to the state treasurer by the commissioner of revenue administration pursuant to RSA 78-A:26, III relative to the tax on motor vehicle rentals.

(d) Funds collected and paid over to the state treasurer by the department of revenue administration pursuant to RSA 78:32, relative to tobacco taxes.

(e) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA 78-B:13, relative to real estate transfer taxes.

(f) Funds collected and paid over to the state treasurer by the department of revenue administration pursuant to RSA 83-F:7, I, relative to the utility property tax.

(g) The full amount of excess education property tax payments from the department of revenue administration pursuant to RSA 198:46.

(h) All moneys due the fund in accordance with RSA 284:21-j, relative to sweepstakes and the lottery.

(j) The school portion of any revenue sharing funds distributed pursuant to RSA 31-A:4 which were apportioned to school districts in the property tax rate calculations in 1998.

II. The education trust fund shall be nonlapsing. The state treasurer shall invest that part of the fund which is not needed for immediate distribution in short-term interest-bearing investments. The income from these investments shall be returned to the fund.

198:40 Determination of Per Pupil Adequate Education Cost and Adequate Education Grant.

I. For the biennium beginning July 1, 1999, and every biennium thereafter, the cost per pupil shall be established using the following formula:

(a) The department of education shall calculate the base expenditure per pupil for each school district that operates an elementary school by subtracting from the total expenditures at the elementary school level, tuition to other school districts or approved educational programs, capital costs and debt service on such costs, special education costs, food service costs, transportation costs, adult/continuing education and community services costs, and federal revenues not otherwise deducted. For each school district, this amount shall be divided by the average daily membership in attendance at the elementary school level to attain the base expenditure per pupil.

(1) The department of education shall identify those school districts where 40 to 60 percent of the elementary pupils enrolled in the grades tested on the day testing began, achieved a scaled score, in the statewide educational improvement and assessment program administered pursuant to RSA 193-C, in all areas tested, equivalent to performance at the basic level or above.

(2) From the school districts identified in subparagraph I(b)(1) of this section, the department of education shall then identify those school districts that have the lowest base expenditure per pupil as calculated pursuant to subparagraph I(a) and which represent, as nearly as possible, 50 percent of the average daily membership in attendance at the elementary level of the school districts identified in subparagraph I(b)(1) of this section.

(3) The department of education shall calculate the average base cost per pupil of an adequate education at the elementary school level by multiplying the base expenditure per pupil of each school district identified in subparagraph I(b)(2) of this section by the average daily membership in attendance at each of the selected school districts, and add the results across all districts selected. This sum shall then be divided by the total average daily membership in attendance at the elementary school level in all of the selected school districts and the result shall be multiplied by .9025.

II. The weighted average daily membership in residence for each municipality shall be calculated by combining the elementary average daily membership in residence with the weighted high school average daily membership in residence, the average daily membership in residence resulting from educationally disabled children, and the additional average daily membership in residence resulting from elementary pupils eligible to receive a free or reduced-price meal. The statewide weighted average daily membership in residence of pupils shall be calculated by combining the weighted average daily membership in residence of each municipality in the state.

III. The statewide cost of an adequate education for all pupils shall be calculated by multiplying the average base per pupil cost of an adequate education by the statewide weighted average daily membership in residence of pupils and then adding 100 percent of transportation costs as defined in RSA 198:38, XI.

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 amount of the adequate education grant for the municipality as follows:

(a) Multiply the average base cost per pupil of an elementary pupil by the weighted average daily membership in residence for the municipality; and

(b) Add to the product of subparagraph (a), 100 percent of the municipality’s apportioned transportation costs as defined in RSA 198:38, XI;

II. 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 amount of the adequate education grant for each municipality as the lesser of the 2 following calculations:

(b) The total amount paid for items of current education expense as determined by the department of education minus the amount of the education property tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year.

200:21 School Money; Distribution of Education Grants; Contingent Version. RSA 198:42, II is repealed and reenacted to read as follows:

II. For the fiscal year beginning July 1, 1999, and every fiscal year thereafter the amount necessary to fund the grants under RSA 198:41 is hereby appropriated from the education trust fund created under RSA 198:39 to the department of education. The governor is authorized to draw a warrant from the education trust fund to satisfy the state’s obligation under this section. Such warrant for payment shall be issued regardless of the balance of funds available in the education trust fund. If the balance in the education trust fund, after the issuance of any such warrant, is less than zero, the commissioner of the department of administrative services shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the distribution of education grants.

200:22 Consumer Price Index Adjustments to the Base Cost Per Pupil Calculation. The base cost per pupil shall be adjusted by the average annual percentage rate of inflation for the 4 immediately preceding calendar years.

200:23 Contingent Applicability. If the New Hampshire supreme court declares any provision of sections 1-15 of SB 302-FN-LOCAL of the 2004 legislative session to be contrary to the New Hampshire constitution, and if the New Hampshire supreme court determines that the applicability thereof to any agency, person, or circumstance is held invalid, then sections 16-22 of this act shall take effect immediately upon the determination of such unconstitutionality and invalidity, and shall remain in effect thereafter.

I. 2003, 241:10-27, relative to the statewide enhanced education property tax formula.

II. 2003, 241:33, relative to the severability of certain provisions of 2003, 241.

III. RSA 198:40, II-III relative to calculating the weighted average daily membership in residence and calculating the statewide cost of an adequate education.

200:25 Consumer Price Index Adjustments to the Base Cost Per Pupil Calculation. Amend 2003, 241:4 to read as follows:

241:4 Consumer Price Index Adjustments to the Base Cost Per Pupil Calculation. For the 2004 [~~fiscal year~~] -2005 biennium, the base cost per pupil shall be adjusted by the average annual percentage rate of inflation for the 4 immediately preceding calendar years.

200:26 Statewide Enhanced Education Tax; Version Effective July 1, 2004. RSA 76:3 is repealed and reenacted to read as follows:

76:3 Statewide Enhanced Education Tax. An annual education property tax at the uniform rate of $3.33 on each $1,000 of the value of taxable property, except property subject to tax under RSA 82 and RSA 83-F, is hereby imposed on all persons and property taxable pursuant to RSA 76:8.

200:27 Statewide Enhanced Education Tax; Version Effective July 1, 2005. RSA 76:3 is repealed and reenacted to read as follows:

76:3 Education Property Tax. Beginning July 1, 2005, and every fiscal year thereafter, the commissioner of the department of revenue administration shall set the education property tax rate at a level sufficient to generate revenue equal to the statewide education property tax revenue generated in the previous fiscal year. Such rate shall be imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F. The education property tax rate shall be effective for the fiscal year in which the calculation is made.

200:28 Contingency. If SB 324-FN-LOCAL of the 2004 legislative session becomes law, section 26 of this act shall take effect July 1, 2004 at 12:02 a.m., section 27 of this act shall take effect July 1, 2005 at 12:02 a.m., and sections 1 and 2 of this act shall not take effect. If SB 324-FN-LOCAL does not become law, section 1 of this act shall take effect July 1, 2004, section 2 of this act shall take effect July 1, 2005, and sections 26 and 27 of this act shall not take effect.

I. Sections 1, 2, 26 and 27 shall take effect as provided in section 28 of this act.

IV. Sections 16-22 of this act shall take effect as provided in section 23 of this act.

V. The remainder of this act shall take effect upon its passage.

(Approved: Enacted in accordance with Article 44, Part II, of N.H. Constitution, without signature of Governor, June 9, 2004)

(Effective Date: I. Sections 1, 2, 26 and 27 shall take effect as provided in section 28.

V. The remainder of this act shall take effect June 9, 2004.)