HB 1675-FN-A-LOCAL - AS INTRODUCED
2024 SESSION
24-2677
10/05
HOUSE BILL 1675-FN-A-LOCAL
AN ACT relative to adjusting education adequacy grants based on pupil proficiency.
SPONSORS: Rep. A. Lekas, Hills. 38; Rep. Bernardy, Rock. 36; Rep. Quaratiello, Rock. 18; Rep. T. Mannion, Hills. 1
COMMITTEE: Education
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ANALYSIS
This bill adjusts the amounts of grants for adequate education by reducing the amount calculated for pupils who test below proficiency levels on the statewide proficiency exam in the previous year.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2677
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to adjusting education adequacy grants based on pupil proficiency.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Adequate Education Grants; Section Heading Amended. Amend the section heading of RSA 198:41 to read as follows:
198:41 Determination of Education Grants; Adjustment Based on Proficiency.
2 New Paragraphs; Determination of Education Grants; Adjustment Based on Proficiency. Amend RSA 198:41 by inserting after paragraph III the following new paragraphs:
III-a. The department shall adjust all grants initially determined under paragraphs I through III. For pupils in grades 3 through 8, the grant will be adjusted based on the number of students found to be proficient on the statewide proficiency exam in the previous year. Proficiency is defined as being in group 3 or 4 in math and language arts.
(a) For fiscal year 2025, each municipality receiving a grant will receive 100 percent of the amount under paragraphs I through III.
(b) For fiscal year 2026, each municipality receiving a grant will receive 100 percent of the per pupil amount for the number of pupils who scored proficient on the statewide proficiency exam the previous year, and 75 percent of the per pupil amount for the number of pupils who tested below proficiency.
(c) For fiscal year 2027, each municipality receiving a grant will receive 100 percent of the per pupil amount for the number of pupils who scored proficient on the statewide proficiency exam the previous year and 50 percent of the per pupil amount for the number of pupils who tested below proficiency.
(d) For fiscal year 2028, each municipality receiving a grant will receive 100 percent of the per pupil amount for the number of pupils who scored proficient on the statewide proficiency exam the previous year and 25 percent of the per pupil amount for the number of pupils who tested below proficiency.
(e) For every fiscal year thereafter, each municipality receiving a grant will receive 50 percent of the per pupil amount for the number of pupils who scored proficient for each of the 2 areas, math and language arts, on the statewide proficiency exam, for a total of 100 percent of the grant amount for pupils who test as proficient in both areas tested.
III-b. Notwithstanding paragraph III-a:
(a) The reduction from 100 percent of the calculated per pupil grant under paragraphs I through III shall not apply to pupils receiving special education services, as defined in RSA 198:38, V, provided the pupil has an IEP and is receiving all services to which they are entitled according to state and federal laws and provided the student has made progress toward proficiency in the previous year.
(b) The reduction from 100 percent of the calculated per pupil grant under paragraphs I through III shall not apply to pupils who are English language learners, as defined in RSA 198:38, V, for the first 2 years after a new student who is an English language learner has moved into the school district.
3. Effective Date. This act shall take effect July 1, 2024.
24-2677
Revised 1/24/24
HB 1675-FN-A-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT relative to adjusting education adequacy grants based on pupil proficiency.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures | $0 | $0 | Indeterminable Decrease - $55,000,000+ Per Year | |||
Funding Source(s) | Education Trust Fund | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A • Does this bill authorize new positions to implement this bill? [X] N/A | ||||||
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Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Local Revenue | $0 | $0 | Indeterminable Decrease - $55,000,000+ Per Year | |||
Local Expenditures | $0 | $0 | $0 | $0 | ||
METHODOLOGY:
This bill, beginning in FY 2026, reduces per pupil aid amount, per school district, for students who score below proficient on the statewide proficiency exam (below group 3 in math and language arts) in the previous year.
The Department of Education does not have an official calculation for FY 2026 adequacy at this time and is therefore assuming FY 2025 data for estimating the impact of this bill. The Department states a school year 2023 (SY 2023) state assigned student identifier (SASID) level adequacy list was generated and was matched with the SY 2023 SASID level proficiency list, indicating all students if they were not tested, tested and proficient, or tested and not proficient on the SY 2023 math and ELA tests. Students below proficient and identified as English language learners and attending the same school district for less than two years are not reflected as reduced per pupil aid amount. Students below proficient and identified as receiving special education services are not reflected as reduced per pupil aid amount. All students identified as receiving special education students have made progress toward proficiency in the previous year. Students not tested receive full, non-reduced adequacy. For illustrative purposes, using SY 2023 ADM counts and the FY 2025 adequacy formula, this bill could reduce state education trust fund expenditures and revenue to school districts by up to $55,000,000 in FY 2026. The Department has not provided any estimates for FY 2027 and beyond.
AGENCIES CONTACTED:
Department of Education