HB1505 — Version 100

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HB 1505-FN-LOCAL - AS INTRODUCED

2000 SESSION

00-2768

04/09

HOUSE BILL 1505-FN-LOCAL

AN ACT relative to the formula for distributing school building aid.

SPONSORS: Rep. McKinley, Straf 2; Rep. Letourneau, Rock 13; Rep. A. Pelletier, Straf 12; Rep. Ward, Graf 1

COMMITTEE: Education

ANALYSIS

This bill changes the annual grant formula for distributing school building 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

00-2768

04/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand

AN ACT relative to the formula for distributing school building aid.

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

1 School Building Aid; Amount of Annual Grant Amended. RSA 198:15-b, I is repealed and reenacted to read as follows:

I.(a) The amount of the annual grant to 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, or any receiving district operating an area school as defined in RSA 195-A:1, shall be determined as follows:

(1) Determine the statewide ranking, from lowest to highest, of each school district's equalized valuation per pupil.

(2) Determine the statewide ranking, from lowest to highest, of each school district's Consumer Price Index as most recently reported by the Bureau of Labor Statistics of the United States Department of Labor.

(3) Add the results of subparagraphs (1) and (2) and divide the resulting sum for each school district by 2 to yield the entitlement factor.

(b) The percentage of school building aid grant entitlement shall be awarded to school districts as follows:

Entitlement Factor Single District Single District in a Cooperative

School District or an Area School

0-59 60 percent 60 percent

60-69 55 percent 60 percent

70-89 45 percent 55 percent

90-114 40 percent 50 percent

115 or greater 30 percent 40 percent

(c) A cooperative school district or area school's grant amount shall be determined by calculating the percentage of total enrollment represented by each school's enrollment within the cooperative school district or area school and multiplying this percentage by each district's percentage of grant entitlement pursuant to paragraph II of this section. The resulting product shall be multiplied by the projected cost of the building project. The sum of the individual district's percentage of grant entitlement shall be the annual grant for the cooperative school district or area school.

(d) As used in this section, "local per capita income" means the per capita income of the municipalities whose boundaries correspond with those of the school district, as calculated by the United States Bureau of the Census, from the most recent available data, and "local equalized valuation per pupil" means the equalized valuation within the school district divided by the current number of pupils within the school district, as calculated by the department of education, and the equalized valuation as published by the department of revenue administration for the second preceding fiscal year.

2 Applicability. The provisions of section 1 of this bill shall not apply until July 1, 2001.

3 Effective Date. This act shall take effect 60 days after its passage.

LBAO

00-2768

12/9/99

HB 1505-FN-LOCAL - FISCAL NOTE

AN ACT relative to the formula for distributing school building aid.

FISCAL IMPACT:

The Department of Education indicates this bill will increase state general fund expenditures and local revenue by an indeterminable amount in FY 2002 and each year thereafter. There will be no fiscal impact on state and county revenue or county and local expenditures.

METHODOLOGY:

The Department made the following assumptions when estimating the fiscal impact of this bill:

· The Consumer Price Index, mentioned on line 10, should read Per Capita Income;

· Per Capita Income and equalized valuation per pupil apply to municipalities and not to school districts;

· Enrollment equals average daily membership in residence; and

· The building aid percentages relating to projects already underway will not change.

The Department could not estimate the amount by which state general fund expenditures and local revenue would increase because they could not predict the number or cost of building projects that districts will undertake in the future. The Department did compile the building aid percentages each town would be entitled to, and based on that analysis, found that no single school district will receive less under the current bill. 79 of the single school districts would remain at 30% and 61 would receive a higher percentage. 11 cooperative/area districts would see a decrease in their current percentage, 12 would see an increase of 5% or more, and 14 would see an increase of less than 5%.