SB 0131

This bill establishes a school choice certificate program. The bill makes an appropriation of $1 for the biennium ending June 30, 2007 to the department of education for the school choice certificate program.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

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

1 Statement of Purpose. It is the purpose of this act to maintain and improve the quality of education in all schools in the state by providing to all parents or legal guardians in the state enhanced opportunity for the exercise of parental choice in the education of their school-age children.

2 New Chapter; School Choice Certificate Program. Amend RSA by inserting after chapter 193-H the following new chapter:

193-I:1 Program Established. A school choice certificate program is hereby established for the purpose of allowing the parent or legal guardian of a child to receive, on request, a certificate that may be used for tuition at a nonpublic school in New Hampshire selected by the child’s parent or legal guardian.

I.(a) School choice certificates shall be available as set forth in this section for payment of tuition at an eligible approved nonpublic school up to the value of the certificate. Funding of school choice certificates shall be made through the education trust fund established in RSA 198:39.

(b) Entry into the program shall be limited to those pupils entering the first grade or pupils enrolled in a New Hampshire public school for the full academic year preceding the year of entry into the program, and whose family income does not exceed 300 percent of the federal poverty guidelines, as established and updated periodically in the Federal Register by the United States Department of Health and Human Services under the authority of 42 U.S.C. section 9902 (2). The department of education shall require proof that a pupil is a legal resident of this state as a prerequisite to participation in this program and shall annually verify the income eligibility of each program participant.

(c) Applications for the program shall be submitted to the appropriate department of education official, on a form provided by the department of education, not earlier than December 1 and not later than June 30 of the academic year preceding the year of participation. The department of education shall notify applicants of acceptance or non-acceptance into the program during the month of July.

(a) In the first year of the program, to children entering grade 1, up to a maximum of 1,200 certificates statewide.

(b) In the second year of the program, to children entering grades 1-2, up to a maximum of 4,000 certificates statewide.

(d) In the fourth year of the program, to children entering grades 1-4, up to a maximum of 8,000 certificates statewide.

(e) In the fifth year of the program, to children entering grades 1-5, up to a maximum of 10,000 certificates statewide.

(f) In the sixth year of the program, to children entering grades 1-6, up to a maximum of 12,000 certificates statewide.

(g) In the seventh year of the program, to children entering grades 1-7, up to a maximum of 14,000 certificates statewide.

(h) In the eighth year of the program, to children entering grades 1-8, up to a maximum of 16,000 certificates statewide.

III. The number of certificates allocated to a school district in a given year shall be a percentage of the total number of certificates available in that year. Such percentage shall be calculated by dividing the most recently available average daily membership in residence in the school district by the most recently available total statewide average daily membership in residence as calculated by the department of education.

IV. In any school district where there are more applicants for certificates than certificates available in a given year as determined under paragraph III, a lottery shall be held by the department of education and certificates shall be allocated according to the following criteria:

(a) First, to pupils who were awarded certificates in the immediately preceding year.

(b) Second, to pupils from families where the family income is below 200 percent of the federal poverty guidelines as established and updated periodically in the Federal Register by the United States Department of Health and Human Services under the authority of 42 U.S.C. section 9902 (2).

(c) Third, to pupils from families where the family income is below 300 percent of the federal poverty guidelines as established and updated periodically in the Federal Register by the United States Department of Health and Human Services under the authority of 42 U.S.C. section 9902 (2).

V. Pupils enrolled in the school choice certificate program shall notify the department of education no later than June 30 of each year of their intent to remain in the program.

193-I:3 Value of Certificate. The value of a school choice certificate for any individual pupil shall be 80 percent of the average per pupil cost of an adequate education as determined by the department of education, provided that:

I. No parent shall receive a school choice certificate whose total household adjusted gross income for federal income tax purposes is greater than 300 percent of the federal poverty guidelines as set by the United States Department of Health and Human Services.

II. Parents whose total household adjusted gross income for federal income tax purposes is not greater than 200 percent of the federal poverty guidelines as set by the United States Department of Health and Human Services shall be eligible for 100 percent of the school choice certificate amount established in this section.

III. Parents whose total household adjusted gross income for federal income tax purposes is greater than 200 percent but not greater than 250 percent of the federal poverty guidelines as set by the United States Department of Health and Human Services shall be eligible for 75 percent of the school choice certificate amount established in this section.

IV. Parents whose total household adjusted gross income for federal income tax purposes is greater than 250 percent but not greater than 275 percent of the federal poverty guidelines as set by the United States Department of Health and Human Services shall be eligible for 50 percent of the school choice certificate amount established in this section.

V. Parents whose total household adjusted gross income for federal income tax purposes is greater than 275 percent but not greater than 300 percent of the federal poverty guidelines as set by the United States Department of Health and Human Services shall be eligible for 25 percent of the school choice certificate amount established in this section.

VI. The remaining 20 percent of the per pupil amount determined under RSA 198:40 shall go to the school district in the pupil’s district of residence.

I. The appropriate official for each nonpublic school shall decide whether to participate in the certificate program.

II. A nonpublic school may admit a child with a certificate, up to the limit of the school’s capacity, after reserving places for children admitted in accordance with the school’s regular admissions practices.

III. Nonpublic schools shall establish criteria for the admission of children with certificates that are consistent with the admissions criteria that it regularly applies.

IV. Participating schools shall be permitted flexibility to educate pupils in accordance with the school’s educational mission.

V. Only nonpublic schools approved by the state of New Hampshire shall be eligible to participate in this program.

I. The appropriate official in the department of education shall administer the certificate program for each pupil who participates in the program. Each nonpublic school which participates in this program shall, no later than June 30 of each year, submit verification of each student in attendance for the full school year under this program on a form provided by the department of education. Such verification shall list the name, address, dates of attendance, and the tuition cost for each student attending under this program.

II. The value of the certificate shall be issued by the state treasurer to the pupil’s parent or legal guardian for payment to the nonpublic school of choice. Distributions made under this section shall coincide with the schedule set forth in RSA 198:42. A parent or legal guardian shall endorse the check for redemption by an official of the nonpublic school.

III. The value of a school choice certificate shall be prorated on a per diem basis for pupils attending a nonpublic school for less than a full school year.

193-I:6 Transportation. Any transportation costs for transporting a child to a nonpublic school outside of the local school district shall be borne by the child’s parent or legal guardian.

193-I:7 Testing. Each nonpublic school which accepts a pupil who is a participant in the school choice certificate program shall submit to the department of education, no later than June 30 of each year, the test scores of any standardized test taken while such pupil was enrolled in the nonpublic school. No personally identifiable information shall be released with the test scores. This provision shall apply only to pupils in the third and sixth grades. The standardized test shall be a test that is nationally accredited or recognized and which offers an objective, comprehensive estimate of a pupil’s educational development in areas such as language arts, reading, mathematics, and social studies.

I. Except as specifically provided in this chapter, nonpublic schools shall not be required to comply with additional laws or rules as a result of attendance by pupils whose parents receive school choice certificates.

II. No nonpublic school shall be required to accept pupils whose parents receive school choice certificates.

III. No school district shall be held liable for damages in an action to recover for bodily injury, personal injury, property damage as defined in RSA 507-B:1, or failure to educate pupils, where the action arises out of a parent’s exercise of options under the provisions of this chapter.

193-I:9 Rulemaking. The state board of education shall adopt rules, pursuant to RSA 541-A, relative to the development of forms necessary to implement this chapter.

193-I:10 Legislative Oversight Committee. A legislative oversight committee is established consisting of the following members:

III. One member of the house of representatives, appointed by the speaker of the house.

V. One member of the house finance committee, appointed by the speaker of the house.

VI. One member of the senate finance committee, appointed by the senate president.

I. The legislative oversight committee shall review the development and implementation of the school choice certificate program established in this chapter to ensure compliance with legislative policy.

II. In the third, fifth, and seventh years of the program, the legislative oversight committee shall conduct a review of the school choice certificate program and submit a report, in each year of review, to the speaker of the house of representatives and the president of the senate detailing the status of the program.

193-I:12 Severability. If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

193-I:13 Source of Funds. Except for general funds specifically appropriated for the purpose of this chapter, the commissioner of the department of education shall not expend any general funds or federal funds appropriated to the department of education on the school choice certificate program. Each fiscal year, the commissioner of the department of education shall identify a source of funds sufficient to fund the school choice certificates requested in such fiscal year and shall inform the house and senate education committees of the source of the funding.

3 Appropriation. The sum of $1 for the biennium ending June 30, 2007 is hereby appropriated to the department of education for the purposes set forth in RSA 193-I. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

The Department of Education states this bill establishes a school certificate program with related funding. The program directs payments to the parents of certain pupils who attend non-public school and the school districts those pupils would otherwise attend. Payments will be made from the Education Trust Fund (ETF) to parents for their children’s tuition at non-public schools in New Hampshire. The payment will equal 80% of the per pupil cost of an adequate education, times a percentage that ranges from 25% to 100%, based on federal poverty guidelines relating to the parents’ income.

School districts of residence will receive 20% of the per pupil cost of an adequate education.

There will be 1,200 certificates issued in FY 2007, 4,000 in FY 2008 and an additional 2,000 each year thereafter to a maximum of 14,000.

For the purposes of estimating the impact of this bill, the Department assumed that each year the per-pupil cost of adequacy will be $3,580, and the maximum number of certificates will be issued. Below is a range of potential expenditures from the ETF based on the level of parental income. Certificates, times per pupil cost, times the percentage is the amount distributed to the parents, while 20% of the per-pupil amount is distributed to the school districts.

Year 1 - FY 2007

Federal Poverty Level Under 200% Under 250% Under 275% Under 300%

Maximum # of Certificates 1,200 1,200 1,200 1,200

Per Pupil Cost $3,580 at 80% $2,864 $2,864 $2,864 $2,864

Poverty Level Percentages 100% 75% 50% 25%

Total Distributed to Parents $3,436,800 $2,577,600 $1,718,400 $ 859,200

Total Distributed to District 859,200 859,200 859,200 859,200

$4,296,000 $3,436,800 $2,577,600 $1,718,400

Year 2 - FY 2008

Federal Poverty Level Under 200% Under 250% Under 275% Under 300%

Maximum # of Certificates 4,000 4,000 4,000 4,000

Per Pupil Cost $3,580 at 80% $2,864 $2,864 2,864 $2,864

Range of Percentages 100% 75% 50% 25%

Total Distributed to Parents $11,456,000 $ 8,592,000 $5,728,000 $2,864,000

Total Distributed to District 2,864,000 2,864,000 2,864,000 2,864,000

$14,320,000 $11,456,000 $8,592,000 $5,728,000

Year 3 - FY 2009

Federal Poverty Level Under 200% Under 250% Under 275% Under 300%

Maximum # of Certificates 6,000 6,000 6,000 6,000

Per Pupil Cost $3,580 at 80% $2,864 $2,864 $2,864 $2,864

Range of Percentages 100% 75% 50% 25%

Total Distributed to Parents $17,184,000 $12,888,000 $ 8,592,000 $4,296,000

Total Distributed to District 4,296,000 4,296,000 4,296,000 4,296,000

$21,480,000 $17,184,000 $12,888,000 $8,592,000

The Department of Education estimates that it will need two positions to fulfill its responsibilities outlined in this bill as shown below.

FY 2007 FY 2008 FY 2009

Program Consultant, Labor Grade 29 $44,928 $46,976 $ 49,082

Program Assistant, Labor Grade 9 19,539 20,319 21,138

64,467 $67,295 70,220

Benefits @ 44% 28,365 29,610 30,897

Total $92,832 $96,905 $101,117

This bill will decrease local expenditures, beginning in FY 2007, if enough pupils who would otherwise enroll in school districts, enroll instead in private schools under the terms of this bill. The Department could not estimate the amount of pupils and the potential decrease in local expenditures.