HB 1579-FN - AS INTRODUCED
2024 SESSION
24-2183
02/05
HOUSE BILL 1579-FN
AN ACT relative to the merging of school administrative units.
SPONSORS: Rep. Tierney, Coos 1; Rep. K. Perez, Rock. 16; Rep. Peternel, Carr. 6; Rep. Cambrils, Merr. 4; Rep. Lundgren, Rock. 16; Sen. Gendreau, Dist 1; Sen. Lang, Dist 2
COMMITTEE: Education
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ANALYSIS
This bill allows for the merger of school administrative units.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2183
02/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to the merging of school administrative units.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 School Administrative Units; Organization, Reorganization, Withdrawal, or Merger. Amend the heading of RSA 194-C:2 to read as follows:
194-C:2 Organization, Reorganization, [or] Withdrawal, or Merger.
2 New Paragraph; School Administrative Units; Merger. Amend RSA 194-C:2 by inserting after paragraph IV the following new paragraph:
V.(a) Pre-existing school administrative units may merge their administrative office with another pre-existing school administrative unit to consolidate administrative costs. Such mergers shall meet the following conditions:
(1) The school districts are not in a pre-existing cooperative school district as defined in RSA 195:1, I;
(2) The proposed merged school district shall have a minimum of 1,500 students;
(3) The proposed merged school district shall have only one superintendent, or person responsible for superintendent duties.
(b) The planning committee shall study and evaluate mergers in the same manner provided for reorganization under paragraph III.
(c) Any school districts who are approved for merger by the planning committee shall be awarded a consolidation grant of an additional $200 per pupil in the merged administrative unit annually for a period of 2 years. In order to qualify for a grant under this subparagraph, the merger must be completed by July 1, 2026. The source of funds for grants under this subparagraph shall be moneys from the education trust fund established in RSA 198:39. The governor is authorized to draw a warrant from the education trust fund to satisfy the state's obligation under this subparagraph.
3 Effective Date. This act shall take effect July 1, 2024.
24-2183
Revised 1/25/24
HB 1579-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the merging of school administrative units.
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 | DOE Admin - $35,000 (General Funds) | Grant Program - Indeterminable Increase (Education Trust Fund) | |||
Funding Source(s) | General Fund, Education Trust Fund | |||||
Appropriations | $0 | $0 | "Open Warrant" for Grants | |||
Funding Source(s) | 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] 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 Increase | |||
Local Expenditures | $0 | $0 | $0 | $0 | ||
METHODOLOGY:
This bill, effective in FY 2025, creates a $200 per pupil grant to be awarded for two years for any district that merge school administrative units (SAU) and in which the merger results in an SAU serving more than 1,500 students. This bill also establishes an open warrant (appropriation) to the Department of Education from the education trust fund for the grants. The Department states most districts will pass their school year 2025 budget in the spring of 2024, before this bill would be enacted. Therefore, the earliest a district might realistically pursue this grant would be FY 2026. However, it would take some planning and organizing to get the votes and redesign the new SAU, so the Department assumes districts would be slow to take advantage of this grant at first. The Department states this bill does not clarify how student would be measured and RSA 194-C uses two different measurements for student: 1) where the student attends school; and 2) where the student resides. Of the 104 SAUs that existed in school year 2023, 67 had fewer than 1,500 students attending a district they served and 68 had fewer than 1,500 students residing in a district they served. The Department cannot forecast which SAUs would apply for this grant and how many students a merger would result in, therefore, this bill’s impact on state education trust fund expenditures and local school district revenue in FY 2026, and beyond, is indeterminable.
The Department states it would incur approximately $35,000 in one-time administrative costs, to set up this grant program. Funding for administrative costs is not included in this bill.
AGENCIES CONTACTED:
Department of Education