SB 0135

AN ACT relative to kindergarten funding.

SPONSORS: Sen. Below, Dist 5; Sen. Fernald, Dist 11; Sen. Flanders, Dist 7; Sen. McCarley, Dist 6; Sen. Gordon, Dist 2; Rep. Colcord, Merr 2; Rep. Brewster, Merr 1; Rep. Rodd, Merr 3

This bill sets forth a formula for distributing new kindergarten adequacy payments to pupils enrolled in new public kindergarten programs or an approved alternative kindergarten program. The bill also provides that kindergarten adequacy payments shall cease once kindergarten enrollment is included in the school district's average daily membership in residence.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

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

1 New Section; Adequacy Funds for New Kindergarten Programs. Amend RSA 198 by inserting after section 42 the following new section:

198:42-a Adequacy Funds for New Kindergarten Programs. A school district that implements a new public kindergarten program on July 1, 1999 or thereafter, shall receive annually, beginning in fiscal year 2002, a kindergarten adequacy payment from the education trust fund established in RSA 198:39 to be calculated as follows:

I. Payments for each eligible kindergarten pupil shall be made at the rate of ½ the average base cost per pupil of an adequate education at the elementary level as determined under RSA 198:40.

II. The number of eligible pupils shall be the number of kindergarten pupils who reside in the district and who, on October 1 of each school year, are enrolled in an approved public kindergarten operated by the district, or are enrolled under a tuition agreement in an approved public kindergarten operated by another district, or are enrolled in an approved alternative kindergarten program operated under RSA 198:48-a.

III. The annual new kindergarten adequacy payment shall be calculated by multiplying the amount established in paragraph I by the number of pupils determined in accordance with paragraph II.

IV. The annual new kindergarten adequacy payment calculated under paragraph III shall be distributed to eligible districts on or before January 1 of each school year.

V. Notwithstanding RSA 198:39, for the fiscal year beginning July 1, 2001, and every fiscal year thereafter, a sum sufficient to distribute annual new kindergarten adequacy payments in accordance with this section shall be appropriated from the education trust fund to the department of education. For each fiscal year, the governor is authorized to draw a warrant for said sum from any moneys available in the education trust fund.

VI. When enrollments in a new public kindergarten program are included in the school district's average daily membership in residence for the purpose of determining adequate education costs and distributing adequate education grants under RSA 198:40 through 198:42, the school district shall not be eligible to receive a new kindergarten adequacy payment calculated under this section.

I. RSA 198:48-a, VII, relative to certain pupils enrolled in an approved alternative kindergarten program.

II. 1999, 65:9, I, as amended by 2000, 289:2, relative to per pupil reimbursements for new public kindergarten programs.

The Department of Education indicates the bill, as amended by the Senate, will increase state restricted expenditures and local revenue by $1,488,642 in FY 2002, $1,981,234 in FY 2003, $4,198,705 in FY 2004 and $4,338,610 in FY 2005. There will be no fiscal impact on state and county revenue or county and local expenditures.

The Department states that a school district that implements a new public kindergarten program on or after July 1, 1999 shall receive an annual grant from the education trust fund until such time as the students in the kindergarten are included in the district's average daily membership in residence. The amount of the grant shall be equal to one half of the average base cost per pupil at the elementary level as calculated under RSA 198:40.

The Department estimates kindergarten payments will be made as shown below:

FY 2002 FY 2003 FY 2004 FY 2005

Average Base Cost $ 3,311 $ 3,311 $ 3,109 $ 3,109

Divided by 2 2 2 2 2

Subtotal $ 1,655.50 $ 1,655.50 $ 1,554.50 $ 1,554.50

Less Amount Per

Current Law (750) (750) - -

Amount of Increase Per Bill $ 905.50 $ 905.50 $ 1,554.50 $ 1,554.50

Number of Estimated Pupils 1,644 2,188 2,701 2,791

Total Increase $1,488,642 $1,981,234 $4,198,705 $4,338,610