HB 327-FN-LOCAL – AS INTRODUCED

2009 SESSION

09-0679

04/01

HOUSE BILL 327-FN-LOCAL

AN ACT eliminating median family income as a factor in calculating fiscal capacity disparity aid.

SPONSORS: Rep. Sapareto, Rock 5

COMMITTEE: Education

ANALYSIS

This bill removes median family income as a factor in calculating fiscal capacity disparity aid.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09-0679

04/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT eliminating median family income as a factor in calculating fiscal capacity disparity aid.

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

1 State Aid to Education; Fiscal Capacity Disparity Aid. Amend RSA 198:40-c to read as follows:

198:40-c Fiscal Capacity Disparity Aid.

I. In addition to aid for the cost of the opportunity for an adequate education provided under RSA 198:40-b, each biennium the department shall calculate fiscal capacity disparity aid and provide that amount of aid in each year of the biennium to a municipality’s school districts and to chartered public schools approved under RSA 194-B:3-a as follows:

(a) The department shall calculate the equalized valuation per pupil for each municipality in the state and shall sort the results into quartiles based on equalized valuation per pupil and shall divide all quartiles in half. If there are an uneven number of municipalities in a quartile or half quartile, the department shall make the lower quartile or half quartile the one with fewer municipalities.

(b) A municipality with an equalized valuation per pupil in the lower half of the lowest quartile [and which has a median family income which is less than the state average median family income] shall receive fiscal capacity disparity aid in the amount of $2,000 multiplied by the municipality’s average daily membership in residence.

(c) A municipality with an equalized valuation per pupil in the upper half of the lowest quartile [which has a median family income which is less than the state average median family income] shall receive fiscal capacity disparity aid in the amount of $1,250 multiplied by the municipality’s average daily membership in residence shall be distributed pursuant to RSA 198:42.

(d) A chartered public school approved under RSA 194-B:3-a shall receive $2,000 per pupil multiplied by the number of pupils enrolled. The calculation of chartered public school enrollment and aid distribution shall be pursuant to RSA 194-B:11, I(c).

II. Except as otherwise provided in this section, aid shall be distributed pursuant to RSA 198:42.

III. In this section[:

(a)], “equalized valuation per pupil” means a municipality’s equalized valuation, including 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 average daily membership in residence, as defined in RSA 189:1-d for the determination year, provided that no kindergarten pupil shall count as more than 1/2 day attendance per calendar day.

[(b) “Median family income” means the most recent census data published for New Hampshire counties and municipalities by the United States Census Bureau, United States Department of Commerce, as of October 1 preceding the beginning of the biennium for which aid is to be determined.]

2 Effective Date. This act shall take effect July 1, 2009 at 12:02 a.m.

LBAO

09-0679

01/07/09

HB 327-FN-LOCAL - FISCAL NOTE

AN ACT eliminating median family income as a factor in calculating fiscal capacity disparity aid.

FISCAL IMPACT:

METHODOLOGY: