HB 0552

HB 552-FN-A-LOCAL - AS INTRODUCED

AN ACT restructuring the delivery of a public elementary and secondary education and related educational services in New Hampshire.

SPONSORS: Rep. Dodge, Rock 4

I. Abolishes the department of education and maintains the state board of education to hear appeals from decisions of local school boards.

II. Establishes a system of one school administrative unit in each county and abolishes the remaining school administrative unit system.

III. Repeals the education property tax, the education trust fund, the excess education property tax payment system, and the education tax hardship payment system.

IV. Reinstitutes the foundation aid, alternative foundation aid, kindergarten aid, and alternative aid funding formulas.

V. Creates a transition committee to oversee the reassignment of functions, duties, responsibilities, and authority formerly exercised by the department of education.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT restructuring the delivery of a public elementary and secondary education and related educational services in New Hampshire.

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

1 Department of Education; Department Abolished; Duties of State Board of Education Amended. RSA 21-N is repealed and reenacted to read as follows:

I. There is hereby established the state board of education consisting of 7 members who shall serve without pay and shall not be technical educators or professionally engaged in school work. The members shall be paid for actual expenses incurred in the performance of their duties out of general fund revenues.

II. The education committee of the house of representatives or the education committee of the senate may, by majority vote of its members, propose areas of study to the board, which shall be put on the agenda of the next meeting of the board for its consideration and response.

III. The governor and council shall appoint the members of the board. Five of the members shall be selected one each from the 5 executive councilor districts and 2 members shall be selected from the public at large. Terms of office of members shall be for 4 years from the January 31 on which the terms of their predecessors expired. Annually, on or before January 31, the governor shall name a member of the board who shall serve as chairperson for one year and until a successor is appointed. No member of the board shall serve more than 3 consecutive full terms.

IV. The governor and council may, after notice and hearing, remove a member of the board for incompetency, failure to discharge the member's duties, malfeasance, immorality, or other cause inimical to the welfare of the public schools, and in case of such removal, or of a vacancy arising from any other cause, they shall make another appointment for the unexpired term.

V. The state shall provide an office for the board. The board shall hold at least 6 regular meetings each year, and such special meetings as may be required. The times and places for regular meetings shall be fixed by the board, and the chairperson shall call a special meeting upon the written request of any 2 members, or on the chairperson's own motion.

21-N:2 Powers and Duties of the State Board. The state board of education shall have the following powers and duties and shall adopt rules, pursuant to RSA 541-A, as follows:

II. To be the sole agency for the receipt and distribution of federal funds for all federally supported or federally mandated elementary and secondary education programs, except as provided in RSA 126-A:5, XIII.

III. To conduct due process hearings relative to the provision of special education programs and services pursuant to 20 U.S.C. Section 1415.

IV. To make grants available to designated regional centers for the construction or renovation of vocational education facilities.

V To distribute state aid to education under RSA 198:56 through 198:66 to the superintendents of the school administrative units.

VI. The state board shall adopt rules, pursuant to RSA 541-A, for the purpose of implementing this section.

2 School Administrative Units; Superintendents; Organization Amended. RSA 194-C is repealed and reenacted to read as follows:

I. School administrative units legally organized shall be corporations, with power to sue and be sued, to hold and dispose of real and personal property for the establishment of facilities for administration and any instructional purposes, and to make necessary contracts in relation to any function of the corporation; provided, however, that such school administrative units shall not have the power to procure land, to construct or purchase buildings, to borrow money in order to purchase real estate, or to mortgage said real estate.

II. There shall be one school administrative unit in each county which shall be located in the most populous city or town in the county, except in Hillsborough and Rockingham counties which shall have 2 school administrative units each, and which shall be located so that approximately 1/2 of the county population is served by each school administrative unit in each county.

III. School administrative units organized under this section shall be authorized to distribute state aid to education under RSA 198:56 through 198:66.

194-C:2 Superintendent Services. Each school administrative unit shall have one superintendent to provide administrative services as deemed necessary by the school administrative unit.

3 New Subdivisions; Foundation Aid; Alternative Foundation Aid; Kindergarten Aid. Amend RSA 198 by inserting after section 55 the following new subdivisions:

198:56 Statement of Policy. It is hereby declared to be the policy of the state of New Hampshire to share in the costs of public elementary and high school education of the local school districts of the state so that the more needy school districts may be assisted in providing an adequate education program, and that education throughout New Hampshire may be improved.

I. "State average equalized valuation per weighted pupil" means the equalized valuation within the state divided by the current number of weighted pupils within the state, as calculated by the school administrative unit superintendent in each county, using the weighted pupil figures and the equalized valuation as published by the department of revenue administration for the second preceding fiscal year.

II. "Local equalized valuation per weighted pupil" means the equalized valuation within the school district divided by the current number of weighted pupils within the school district, as calculated by the school administrative unit superintendent in each county, using the weighted pupil figures and the equalized valuation as published by the department of revenue administration for the second preceding fiscal year.

III. "State per capita income" means the state per capita income as calculated by the United States Bureau of the Census, from the most recent available data.

IV. "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.

V. "State average revenue per weighted pupil" means the total assessment for schools within the state divided by the total number of weighted pupils within the state, as calculated by the school administrative unit superintendent in each county.

VI. "Local revenue per weighted pupil" means the local assessment for schools divided by the local number of weighted pupils, as calculated by the school administrative unit superintendent in each county.

VII. "Local equalized school tax rate" means the local equalized school tax rate, as calculated by the school administrative unit superintendent in each county.

VIII. "State average equalized school tax rate" means the state average equalized school tax rate, as calculated by the school administrative unit superintendent in each county.

IX. "Weighted pupil" means a resident pupil who has been assigned to one of the following classifications, based on the type of education the pupil received. The weights assigned to a high school pupil and to a high school pupil enrolled in a state approved vocational program reflect the differences in educational costs between these classifications when compared to the average current operating expenditure to educate a resident elementary pupil. The weights assigned to an educationally disabled child reflect the differences in education costs among the classifications of educationally disabled children when compared to the average current operating expenditure to educate a resident pupil in grades kindergarten through 12 who is not educationally disabled and not a high school pupil enrolled in a state approved vocational program. The following classifications of pupils shall carry the following weights:

(a) An elementary pupil, not educationally disabled as defined in RSA 186-C:2, I, which shall include kindergarten pupils, 1.0.

(b) A high school pupil, not educationally disabled as defined in RSA 186-C:2, I and not enrolled in a state-approved vocational program, 1.21.

(d) An educationally disabled child as defined in RSA 186-C:2, I, in one of the following types of programs:

(1) In-district, placed within a self-contained special education classroom, 2.57.

(2) In-district, without placement in a self-contained special education classroom, 2.12.

X. "Local education program cost" means the local number of weighted pupils multiplied by the state average cost of elementary pupils as determined by the school administrative unit superintendent in each county based on the school year in which the weighted factors are computed and shall not include the costs of special education.

I. The total number of weighted pupils for a school district shall be calculated by first multiplying the number of resident pupils in each of the classifications listed in RSA 198:57, IX by the weight factor for that classification in order to determine the number of weighted pupils in each classification. The numbers of weighted pupils in each of the classifications are then added together to determine the total number of weighted pupils for the school district.

II. An equalization factor shall be determined for each school district by the following formula:

III. In no case shall a district's equalization factor, as determined in paragraph II, be greater than 9.

IV. For the purposes of calculating aid to cooperative school districts, each pre-existing district shall have its equalization factor, as determined in paragraph II, calculated separately. In calculating that equalization factor, the weighted pupils in vocational education in cooperative school districts and the weighted pupils in special education in cooperative school districts shall be apportioned to each pre-existing district in direct proportion to the pre-existing district's share of the cooperative school district budget. However, cooperative school districts formed by 2 or more pre-existing districts whose boundaries approximate those of a single township in which they are located shall be treated as a single school district.

V. A district percentage shall be determined for each school district by the following formula:

VI. The district foundation aid for each school district shall be calculated as follows:

VII. For the purposes of distributing the district foundation aid, a cooperative school district shall be entitled to the total amount of aid to which the pupils attending the cooperative district would have entitled the pre-existing districts, had they remained in the pre-existing districts. Each such pre-existing district shall have its district foundation aid credited against its share of the cooperative school district budget. However, cooperative school districts formed by 2 or more pre-existing districts whose boundaries approximate those of a single township in which they are located shall be treated as a single school district.

198:59 Adjustment Constant. If the total of the funds computed initially to be distributed in accordance with RSA 198:58 does not match the total of the funds appropriated for distribution under RSA 198:58, then the school administrative unit superintendent in each county shall determine the constant to be subtracted from each district's percentage as calculated in RSA 198:58, V; however, in no case shall a district percentage be less than zero. This constant shall assure that the funds computed for distribution equal the funds appropriated for distribution.

I. Foundation aid shall be paid to the school district legally responsible for the education of the pupils who attend approved public schools within the district or in other districts, as the case may be. Payment of such aid shall be made during the state fiscal year for which such aid is due.

II. Foundation aid shall be distributed in 3 approximately equal payments per year. The sweepstakes portion of foundation aid payments shall each be based on sweepstakes revenues earned 2 payment periods previous to the period of distribution. Third period distribution of sweepstakes revenues shall therefore represent revenues earned in the first period and calculated in the second period. The first payment of foundation aid, to be made during the month of September, shall be approximately 1/3 of the total annual payment, plus or minus any adjustment required from a prior distribution based on sweepstakes revenues exceeding amounts estimated during the prior period of calculation. The other 2 payments, to be made during the months of January and April, shall make adjustment for any overpayment or underpayment made in the September payment. Such adjustments shall be calculated based upon any sweepstakes revenues earned during the period of calculation in excess of estimated revenues. In no event shall such distribution of sweepstakes revenues be made which amounts to less than the amount appropriated for the purpose of funding foundation aid in the operating budget for the fiscal year.

198:61 Time of Computation of Foundation Aid. Before April 1 of each year all school districts shall submit to the superintendent in each county the average daily resident membership of that district for the school year which ended in the preceding July. The resident membership information shall categorize each of the pupils into one of the classifications in RSA 198:57, IX. Before October 1 the school administrative unit superintendent in each county shall estimate the amount of foundation aid which each school district shall receive for the fiscal year which begins the following July 1. The school administrative unit superintendent in each county shall notify the school districts of the estimated amount of foundation aid to which they are entitled for the following fiscal year by November 1.

198:62 Statement of Policy. It is hereby declared to be the policy of the state of New Hampshire to share in the costs of public elementary and high school education in order to assist the more needy school districts in providing an adequate educational program.

I. "Local equalized valuation per weighted pupil" means the total equalized valuation within the school district divided by the current number of weighted pupils within the school district, as calculated by the school administrative unit superintendent.

II. "Local equalized school tax rate" means the local equalized school tax rate, as calculated by the school administrative unit superintendent.

III. "Local harmonic estimate of fiscal capacity" means the quotient of the number 2 divided by the sum of the multiplicative inverse of the local tax estimate of fiscal capacity added to the multiplicative inverse of the local income estimate of fiscal capacity, as calculated by the school administrative unit superintendent.

IV. "Local income effort" means the local revenue per weighted pupil divided by the local per capita income, as calculated by the school administrative unit superintendent.

V. "Local income estimate of fiscal capacity" means the local per capita income multiplied by the state average income effort, as calculated by the school administrative unit superintendent.

VI. "Local per capita income" means the per capita income of the municipality whose boundaries correspond with those of the school district, as that income is determined by the department of revenue administration from the most recently available data.

VII. "Local revenue per weighted pupil" means the product of the local equalized school tax rate multiplied by the local equalized valuation per weighted pupil, as calculated by the school administrative unit superintendent.

VIII. "Local summary estimate of fiscal capacity" means, for a school district, the local harmonic estimate of fiscal capacity, as calculated by the school administrative unit superintendent.

IX. "Local tax estimate of fiscal capacity" means the local equalized valuation per weighted pupil multiplied by the state average equalized school tax rate, as calculated by the school administrative unit superintendent.

X. "State average equalized school tax rate" means the sum of the products of the local equalized school tax rate multiplied by the local number of weighted pupils, which sum is then divided by the total number of weighted pupils within the state, as calculated by the school administrative unit superintendent.

XI. "State average income effort" means the sum of the products of the local income effort multiplied by the local number of weighted pupils, which sum is then divided by the total number of weighted pupils within the state, as calculated by the school administrative unit superintendent.

XII. "Weighted pupil" means a resident pupil who has been assigned to one of the following classifications, based on the type of education the pupil received. The weights assigned to a high school pupil and to a high school pupil enrolled in a state approved vocational program reflect the differences in educational costs between these classifications when compared to the average current operating expenditure to educate a resident elementary pupil. The weights assigned to an educationally disabled child reflect the differences in education costs among the classifications of educationally disabled children when compared to the average current operating expenditure to educate a resident pupil in grades kindergarten through 12 who is not educationally disabled and not a high school pupil enrolled in a state approved vocational program. The following classifications of pupils shall carry the following weights:

(a) An elementary pupil, not educationally disabled as defined in RSA 186-C:2, I, which shall include kindergarten pupils, 1.0;

(b) A high school pupil, not educationally disabled as defined in RSA 186-C:2, I and not enrolled in a state approved vocational program, 1.21;

(d) An educationally disabled child as defined in RSA 186-C:2, I, in one of the following types of programs:

(1) In-district, placed within a self-contained special education classroom, 2.57;

(2) In-district, without placement in a self-contained special education classroom, 2.12;

I. The total number of weighted pupils for a school district shall be calculated by first multiplying the number of resident pupils in each of the classifications listed in RSA 198:63, XII by the weight factor for that classification in order to determine the number of weighted pupils in each classification. The numbers of weighted pupils in each of the classifications are then added together to determine the total number of weighted pupils for the school district.

II. For the purpose of calculating aid to cooperative school districts, each pre-existing school district shall have its local summary estimate of the fiscal capacity calculated separately. In calculating the local summary estimate of fiscal capacity, the weighted pupils in vocational education in cooperative school districts and the weighted pupils in special education in cooperative school districts, shall be apportioned to each pre-existing district in direct proportion to the pre-existing district's share of the cooperative school district budget. However, cooperative school districts formed by 2 or more pre-existing districts whose boundaries approximate those of a single township in which they are located shall be treated as a single school district.

III. Each school district whose local summary estimate of fiscal capacity is less than the foundation amount shall receive foundation aid equal to the product of the district's total number of weighted pupils multiplied by the difference between the foundation amount and the district's summary estimate of fiscal capacity.

V. For the purposes of distributing district foundation aid, a cooperative school district shall be entitled to the total amount of aid to which the pupils attending the cooperative district would have entitled the pre-existing districts, had they remained in the pre-existing districts. Each such pre-existing district shall have its district foundation aid credited against its share of the cooperative school district budget. However, cooperative school districts formed by 2 or more pre-existing districts whose boundaries approximate those of a single township in which they are located shall be treated as a single school district.

198:65 Time of Computation of Foundation Aid. Before April 1 of each year, all school districts shall submit to the school administrative unit superintendent the average daily resident membership of that district for the school year which ended in the preceding July. The resident membership information shall categorize each of the pupils into one of the classifications in RSA 198:35, XII. Before October 1 the school administrative unit superintendent shall estimate the amount of foundation aid which each school district shall receive for the fiscal year which begins the following July 1. The school administrative unit superintendent shall notify the school districts of the estimated amount of foundation aid to which they are entitled for the following fiscal year by November 1.

198:66 Distributions. Beginning July 1, 2003, the foundation aid amount shall be either the amount determined under RSA 198:58 or the amount determined under RSA 198:64, whichever is greater.

I. There is established a kindergarten aid program through which the school administrative unit superintendent shall pay annually for financial assistance to local school districts the sum of $750 per eligible kindergarten pupil who resides in the district and attends a public kindergarten in those districts that provide and maintain a public kindergarten program. These funds shall also be provided to districts that contract with other established public kindergarten programs for the education of their resident kindergarten pupils or have an approved alternative kindergarten program established in accordance with the provisions of this subdivision.

II. For purposes of this subdivision, to "provide and maintain a public kindergarten program" means:

(a) To operate a kindergarten program within an approved public school maintained by the local school district; or

(b) To pay tuition on behalf of resident pupils to a kindergarten in an approved public school operated by another district in this state or in another state.

III.(a) In order to qualify for kindergarten aid, kindergarten programs shall meet New Hampshire minimum standards for the approval of schools, as well as the eligibility criteria established in RSA 198:68, I.

(b) A charter school or open enrollment kindergarten program shall qualify a pupil's resident district to receive kindergarten aid for such pupil, provided that the district meets the eligibility criteria established in RSA 198:68, I.

I. In addition to any other requirements established in this subdivision, in order to be eligible for annual kindergarten aid payments, a kindergarten program provided by a school district, in accordance with this subdivision, shall be:

II. The school administrative unit superintendent shall administer the kindergarten aid program and shall be responsible for the following:

(a) Providing educational services, including technical assistance and training, to school districts in establishing and maintaining effective kindergarten programs.

(b) Assisting districts in the development of plans, including plans for alternative kindergarten programs, for making kindergarten available to resident pupils.

(d) Determining the number of eligible kindergarten pupils who reside in a district by collecting kindergarten enrollment data on October 1 of each school year.

(e) Calculating a district's annual kindergarten aid entitlement by multiplying the amount of the per-pupil kindergarten aid payment times the number of eligible kindergarten pupils who reside in a district and who are actually enrolled in a public kindergarten or alternative kindergarten program.

(f) Distributing kindergarten aid payments to eligible districts on or before January 1 of each state fiscal year.

III. If in any state fiscal year the amount appropriated for kindergarten aid in accordance with this subdivision is insufficient, the payment due on January 1 shall be prorated proportionally based on entitlements among the school districts eligible for aid payments. It shall be the duty of the school administrative unit superintendent to request a supplemental appropriation sufficient to pay each district's full entitlement. If such additional funds are appropriated, the school administrative unit superintendent shall promptly pay the remaining balance due each eligible school district.

I. A school district that currently does not operate a kindergarten program within an approved public school maintained by the local district or currently does not contract with another established public kindergarten program for the education of its resident kindergarten pupils, may submit to the school administrative unit superintendent a local plan for an alternative kindergarten program based upon contractual arrangements with one or more nonpublic, non-sectarian schools or facilities.

II. An alternative kindergarten program must satisfy the same criteria established for public kindergarten programs in the New Hampshire minimum standards for the approval of schools.

III. A local plan for an alternative kindergarten program must be approved by the school board and the legislative body of the district. A local plan for an alternative kindergarten program shall be submitted to the school administrative unit superintendent at times established by the school administrative unit superintendent.

(b) An explanation of how the program meets the eligibility criteria established in RSA 198:68, I.

(d) Evidence that the alternative kindergarten program satisfies the same criteria established for public kindergarten programs in the New Hampshire minimum standards for the approval of schools.

(e) Procedures for coordinating and articulating curriculum, instruction, and support services provided under the alternative kindergarten program with curriculum, instruction, and support services provided in the other elementary grades.

(f) An explanation of how students will be transported to and from the schools or facilities to be utilized.

V. The plan shall be reviewed by the school administrative unit superintendent for compliance with statutory requirements.

VI. If an approved alternative kindergarten program utilizes more than one school or facility, the school board or the superintendent or other administrative officer designated by the school board may take into consideration parental preference when assigning students to schools or facilities in accordance with the provisions of RSA 193:14.

VII. Notwithstanding any other provision in the law requiring kindergarten programs to meet New Hampshire minimum standards for the approval of schools, any district accepting alternative kindergarten aid shall either apply state minimum standards to all district kindergartens, or shall develop and maintain district kindergarten standards which shall include provisions relating to the coordination of the curriculum of the kindergarten and district elementary schools. Nothing in this section shall be construed to waive the provisions of RSA 170-E:11, I.

VIII. Any local school district that has a contractual arrangement, approved by the school board and the voters of the district, to provide school district paid tuition payments to a nonpublic and non-sectarian school for the purpose of providing a kindergarten program which is available to all kindergarten age children in the district shall be eligible for annual kindergarten aid payments under this subdivision. The school district shall submit a local plan which meets all requirements of this section except as provided under subparagraph IV(d), to the school administrative unit superintendent.

5 Sweepstakes Fund Amended. RSA 284:21-j is repealed and reenacted to read as follows:

I. The state treasurer shall credit all moneys received from the sweepstakes commission, and interest received on such moneys, to a special fund from which the state treasurer shall pay all expenses of the commission incident to the administration of this subdivision and RSA 287-E. Any balance left in said special fund after such expenses are paid shall be continually appropriated to the state board of education for expenditure and distribution for the sole purpose of funding state aid to education under RSA 198:56 through 198:61. For purposes of this section, "continually appropriated and distributed" means that sweepstakes revenues which are available for distribution under RSA 198:56 through 198:61, whether equal to or exceeding amounts estimated, shall be constantly transferred to the foundation aid fund, and that the expenditure class or classes shall be increased at the same time and by the same amount so that the amount of sweepstakes revenues to be distributed under RSA 198:56 through 198:61 shall not be limited by the amount appropriated. In no event shall such distribution of sweepstakes revenues be made which amounts to less than the amount appropriated for the purpose of funding foundation aid in the operating budget for the fiscal year.

II. For every fiscal year, if the combination of the prior year's balance forward and the current year's revenue is not sufficient to fully fund the appropriation for state aid to education under RSA 198:56 through 198:61 for that fiscal year, any shortfall shall be a charge against any funds in the treasury otherwise unappropriated. Conversely, if the amount available in said special fund exceeds the amount of the legislative estimate of revenue from the fund, the excess shall be carried forward into the following fiscal year.

6 New Paragraph; Department of Health and Human Services; Duties of Commissioner Amended. Amend RSA 126-A:5 by inserting after paragraph XII the following new paragraph:

XIII. The commissioner shall administer the collection and distribution of all federal and state funds for special education, including funding for catastrophic aid programs in the school districts of the state. The commissioner shall adopt rules pursuant to RSA 541-A necessary for the implementation of this paragraph.

I. There is hereby established a transition committee to administer and manage the abolishment of the department of education and the necessary transition of all associated functions, duties, responsibilities, and authority associated with the department of education.

(1) Three members of the house of representatives, appointed by the speaker of the house.

(b) Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

8 Duties. The committee shall review all state statutes and recommend any changes deemed necessary relative to the transition of functions, duties, responsibilities, and authority formerly associated with the department of education. The committee shall identify and revise, as deemed necessary, any statutory citations, references, and cross-references rendered obsolete or inapplicable as a result of the abolishment of the department of education.

9 Report. The committee shall submit its findings along with its recommendations for proposed legislation to the speaker of the house, the president of the senate, the house clerk, the senate clerk, the governor, and the state library no later than November 1, 2001.

IV. RSA 198:38 through 198:55, relative to state grants for educational adequacy, alternative kindergarten aid, and education property tax hardship relief payments.

AN ACT restructuring the delivery of a public elementary and secondary education and related educational services in New Hampshire.

The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from an agency.