HB 1656-FN-LOCAL - AS INTRODUCED
2024 SESSION
24-2623
12/05
HOUSE BILL 1656-FN-LOCAL
AN ACT relative to increasing the adequacy grant for pupils receiving special education services.
SPONSORS: Rep. Kenney, Straf. 10; Rep. Morse, Graf. 9; Rep. Selig, Straf. 10; Rep. Horrigan, Straf. 10; Rep. A. Nutting-Wong, Hills. 9; Rep. Wheeler, Hills. 33; Rep. H. Howard, Straf. 4; Rep. Toll, Ches. 15; Sen. Watters, Dist 4; Sen. Altschiller, Dist 24
COMMITTEE: Education
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ANALYSIS
This bill increases the annual cost of an adequate eduction for each pupil in ADMR receiving special education services.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2623
12/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to increasing the adequacy grant for pupils receiving special education services.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Cost of an Opportunity for an Adequate Education. Amend RSA 198:40-a to read as follows:
198:40-a Cost of an Opportunity for an Adequate Education.
I. For the biennium beginning July 1, [2023,] 2025, the annual cost of providing the opportunity for an adequate education as defined in RSA 193-E:2-a shall be as specified in paragraph II. The department shall adjust the rates specified in this paragraph in accordance with RSA 198:40-d.
II.(a) A cost of $4,100 per pupil in the ADMR, plus differentiated aid as follows:
(b) An additional $2,300 for each pupil in the ADMR who is eligible for a free or reduced price meal anytime during the determination year; plus
(c) An additional $800 for each pupil in the ADMR who is an English language learner anytime during the determination year; plus
(d) An additional [$2,100] $27,000 for each pupil in the ADMR who is receiving special education services anytime during the determination year.
III. The sum total calculated under paragraph II shall be the cost of an adequate education. The department shall determine the cost of an adequate education for each municipality based on the ADMR of pupils who reside in that municipality.
2 Effective Date. This act shall take effect July 1, 2024.
24-2623
12/10/23
HB 1656-FN-LOCAL- FISCAL NOTE
AS INTRODUCED
AN ACT relative to increasing the adequacy grant for pupils receiving special education services.
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
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Expenditures | $0 | $0 | Indeterminable Increase - Likely $650+ Million Per Year | |||
Funding Source(s) | Education Trust Fund
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Appropriations | $0 | $0 | See Methodology Below | |||
Funding Source(s) | Education Trust Fund
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] See Below • 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 | $0 | $0 | ||
Local Expenditures | $0 | $0 | Indeterminable Increase - Likely $650+ Million Per Year | |||
METHODOLOGY:
This bill, effective in FY 2026, would increase the special education component amount for the cost for an opportunity for an adequate education to $27,000. There is a 2% annual adjustment applied to this per pupil grant and under current law, the amounts anticipated for FY 2026 and FY 2027 are $2,184.84 and $2,228.54, respectively. Under this bill, those amounts would be $27,000 in FY 2026 $27,540 in FY 2027.
While there is not yet data available to make an estimate for FY 2026, for illustrative purposes, were this bill’s change to be applied to FY 2025 data, below is a summary of the impact on state education trust fund expenditures and local revenue:
| FY 2025 Total State Grant |
Current Law - Preliminary Estimates | $1,054,673,961 |
With $27,000 Per Pupil SPED | $1,739,953,337 |
Increase / (Decrease) | $685,279,376 |
Expenditures of this amount from the education trust fund would put the fund into deficit. In that case, a transfer from the general fund would be required to bring the education trust fund balance to zero (RSA 198:42, II). However, this amount is unlikely to be sufficiently covered by the general fund, to which a transfer from the revenue stabilization reserve account (“rainy day fund”) may be necessary at the close of the biennium ending June 30, 2025 (RSA 9:13-e, III). For informational purposes, legislative estimates derived during the 2023 session assumed the following fund balances at June 30, 2025 (to which the total of all would be insufficient to cover the cost of this bill):
Education Trust Fund: $232.3 million General Fund: $0 Revenue Stabilization Reserve Account: $225.9 million Total: $458.2 million
AGENCIES CONTACTED:
Department of Education