New Hampshire Legislative Service Requests (LSR's)

SB 342-FN - AS INTRODUCED

2024 SESSION

24-2835

02/10

SENATE BILL 342-FN

AN ACT relative to school building aid funding.

SPONSORS: Sen. Lang, Dist 2; Sen. Gendreau, Dist 1; Sen. Innis, Dist 7; Sen. Carson, Dist 14; Sen. Birdsell, Dist 19; Sen. Pearl, Dist 17; Rep. Moffett, Merr. 4; Rep. Ladd, Graf. 5; Rep. Packard, Rock. 16

COMMITTEE: Education

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ANALYSIS

This bill establishes a new school district building aid funding program using state funds allocated to each district and makes an appropriation therefor.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

24-2835

02/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Four

AN ACT relative to school building aid funding.

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

1 School Building Aid; Grant for School Construction. Amend RSA 198:15-a, I-a to read as follows:

I-a. For purposes of this subdivision, "school district" means any school district duly organized, any city maintaining a school department within its corporate organization, any cooperative school district as defined in RSA 195:1, any receiving district operating an area school as defined in RSA 195-A:1, or any receiving district providing an education to pupils from one or more sending districts under a contract entered into pursuant to RSA 194:21-a or RSA 194:22. For the purpose of receiving a distribution from allocated funds pursuant to RSA 198:15-f, school district shall include any chartered public school as defined in RSA 194-B:1, IV.

2 Grant for School Construction. Amend RSA 198:15-a, IV to read as follows:

IV. Beginning July 1, [2013] 2024, and every fiscal year thereafter, school building aid grants for construction or renovation projects approved by the department of education shall not exceed $50,000,000 per fiscal year less any debt service payments owed in the fiscal year, unless otherwise provided by an act of the general court, provided that beginning July 1, 2024, and every fiscal year thereafter, grants under this chapter shall be reduced by $5,000,000 as provided in RSA 198:15-f and credited to the school building construction allocation program. School building aid grants shall be funded from appropriations in the state operating budget and no state bonds shall be authorized or issued for the purpose of funding such school building aid grants.

3 Approval of Plans; Specifications, and Costs of Construction or Purchase. Amend RSA 198:15-c, I(b) to read as follows:

(b) Beginning January 1, 2025 and each year thereafter, to be considered for a school building aid grant, or for a distribution under RSA 198:15-f, the complete building aid application shall be submitted no later than April 1 of the fiscal year that immediately precedes the fiscal year in which the school desires to seek the district's legislative body's approval for construction. The application shall include at a minimum, schematic design plans, cost estimates, educational needs assessment, existing facility conditions assessment including, but not limited to a review of the mechanical, electrical, plumbing, and structural components of the building, proof of an annual school budget to support good maintenance, and other documentation as required by the department and identified in the department's school building construction rules.

4 New Paragraph; Approval of Plans; Specifications, and Costs of Construction or Purchase. RSA 198:15-c by inserting after paragraph III the following new paragraph:

IV. The commissioner of the department of education shall accept and approve applications for disbursement of funds to school districts or chartered public schools for school construction costs pursuant to RSA 198:15-f, based on the recommendations of the department and which shall be subject to prior approval by the school building authority in RSA 195-C.

5 New Paragraph; School Building Authority. Amend RSA 195-C:1 by inserting after paragraph IV the following new paragraph:

V. The authority shall accept and approve applications for disbursement of funds to school districts or chartered public schools for school construction costs pursuant to RSA 198:15-f, based on the recommendations of the department and which shall be subject to subsequent approval by the commissioner of the department of education pursuant to RSA 198:15-c, IV.

6 School Building Construction Allocation Program. RSA 198:15-f is repealed and reenacted to read as follows:

198:15-f School Building Construction Allocation.

I. There is hereby established a school building construction allocation program which shall be administered by the department of education pursuant to approval by the authority established under RSA 195-C. To aid local school districts in meeting the costs of school buildings, the department of education shall, from funds appropriated by the general court to carry out the provisions of this section, pay to the school districts and chartered public schools of the state, sums in accordance with the provisions of this section.

II. There is established a nonlapsing fund in the department of education to be known as the school building construction allocation program fund. There is appropriated annually the sum $25,000,000 to this fund from the education trust fund for the purposes established under this section. Beginning July 1, 2024, and every fiscal year thereafter, the amount of $5,000,000 shall be credited to this fund from the school building aid fund pursuant to RSA 198:15-a, IV until such funds are exhausted. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated. All moneys in the fund shall be nonlapsing and continually appropriated to the department of education.

III. New moneys deposited into this fund each fiscal year shall be allocated annually to each school district or chartered public school based on per pupil average daily membership in attendance rate, as defined in RSA 189:1-d, III, and segregated for the benefit of the school district or chartered public school until authorized for distribution under paragraph IV.

IV. All school construction plans and specifications shall comply with the requirements of RSA 198:15-c and the rules of the department in requesting a distribution from the fund for payment or reimbursement of school construction approved under this section, notwithstanding any requirements for authorization of bonds or notes or payment of debt service unless such project contains an authorization of bonds as a component of funding. Approved projects for funding shall include:

(a) New building construction;

(b) Capital renovations of existing buildings; or

7 New Subparagraph; Application of Receipts. Amend RSA 6:12, I(b) by inserting after subparagraph (394) the following new subparagraph:

(395) Moneys deposited in the school building construction allocation fund established under RSA 198:15-f.

8 Effective Date. This act shall take effect July 1, 2024.

LBA

24-2835

Revised 12/22/23

SB 342-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to school building aid funding.

FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None


Estimated State Impact - Increase / (Decrease)
	FY 2024	FY 2025	FY 2026	FY 2027
Revenue	$0	$0	$0	$0
Revenue Fund(s)	None
Expenditures	$0	School Building Aid Program - ($5M Decrease in FY25) School Building Construction Allocation Program - Indeterminable Increase Department of Education Personnel Costs - $106K in FY25, $109K in FY26, and $113K in FY27
Funding Source(s)	General Fund, Education Trust Fund
Appropriations	$0	School Building Aid Program - ($5M Decrease in FY25 (Education Trust Fund)) School Building Construction Allocation Program - $5M in FY25 from School Building Aid Program (ETF) and $25M in Each FY25, FY26, and FY27 from General Fund
Funding Source(s)	General Fund, Education Trust Fund
• Does this bill provide sufficient funding to cover estimated expenditures? [X] No • Does this bill authorize new positions to implement this bill? [X] No

Estimated Political Subdivision Impact - Increase / (Decrease)
	FY 2024	FY 2025	FY 2026	FY 2027
Local Revenue	$0	Indeterminable
Local Expenditures	$0	$0	$0	$0

METHODOLOGY:

This bill seeks to establish a new school building construction allocation program for district and charter public schools, along with a dedicated fund, to be administered by the Department of Education. Beginning in FY 2025, the fund would be appropriated $25,000,000 per year, and in addition, this bill seeks to redirect appropriations from the traditional school building aid program under RSA 198:15-a, IV, in the amount of $5,000,000 per year “until such funds are exhausted. The traditional school building aid program receives appropriations through the state operating budget and is statutorily capped to not exceed $50,000,000 in any year (including any associated debt service payments). It is assumed the new school building construction allocation program would be appropriated $30,000,000 in FY 2025 ($25,000,000 from the general fund and $5,000,000 through an appropriation reduction to the traditional school building aid program) and $25,000,000 in FY 2026 and each year thereafter. No transfer from the traditional school building aid program is assumed in FY 2026 and beyond as those funds have not yet been appropriated (this bill refers to “school building aid fund pursuant to RSA 198:15-a, IV”, however there is no “fund” and the amounts for school building aid are determined each biennium in the state operating budget. It is assumed the $5,000,000 reduction in FY 2025 would impact grants for new projects and not affect "tail payments" to districts for previously approved projects.

This bill states money for the new program shall be allocated annually to each school district or chartered public school based on per pupil average daily membership in attendance rate, as defined in 189:1-d, III, and segregated for the benefit of the school district or chartered public school until authorized for distribution. The Department of Education reports 163,732 total students (school year 2022-2023), and assuming initial funding of $30,000,000, there would be approximately $183.23 per student. The Department cannot estimate at this time how much in funding may be requested, approved, and distributed in FY 2025, FY 2026, and FY 2027, however, based on funding provided in this bill it could not exceed $80,000,000 over that period ($30,000,000 added in FY 2025 and $25,000,000 added in each FY 2026 and FY 2027).

The Department states it would need one new administrator II position (labor grade 29) to help develop, implement, and administer the new program established by this bill. The Department estimates the total position cost to be $106,000 in FY 2025, $109,000 in FY 2026, and $113,000 in FY 2027, based on a hire date of July 1, 2024. This bill provides neither authorization nor authority for new personnel.

AGENCIES CONTACTED:

Department of Education