2002 SESSION

02-3158

04/10

SENATE BILL 424-FN-A

COMMITTEE: Education

ANALYSIS

This bill provides that the legislature shall fund certain educational costs related to instruction including but not limited to classroom teachers, classroom materials, professional development, building aid, technological resources, and special assistance to pupils with educational disabilities. The bill also provides funding to communities which have below average property wealth.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02-3158

04/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Two

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

1 Purpose; Intent. The general court recognizes that the state has a duty to ensure that every child residing within the state is provided with the opportunity to receive an adequate elementary and secondary education. An adequate education requires the effective transfer of knowledge. This is accomplished through capable and thoughtful instruction. It shall be the responsibility of the state to provide an adequate level of resources to enable such instruction. This responsibility includes funding for instructional costs, including, but not limited to, classroom teachers, classroom materials, professional development, building aid, technological resources and special assistance to those with disabilities. It also includes additional support to those communities in the state which are financially disadvantaged.

2 State Board of Education Rulemaking Authority Amended. Amend RSA 21-N:9, II (l) to read as follows:

(1) Special education programs affecting all educationally disabled individuals, as authorized by RSA 186-C:5[,] and 186-C:16 [and 186-C:18, V].

3 Special Education; Educationally Disabled Children in State Institutions. Amend RSA 186-C:19, II to read as follows:

II. For an educationally disabled child in a state institution, the responsible school district shall be liable for all expenses incurred in administering the law in relation to educationally disabled children except as follows: For the 1982 and 1983 fiscal years, the responsible school district's annual financial liability for a child who was enrolled at the Laconia state school and training center as of July 1, 1981, shall not exceed the applicable state average per pupil cost as determined by the state board of education, and the state shall be liable for the balance of such costs[, which shall in no case be taken from the $ 10,000,000 appropriated for state aid under RSA 186-C:18]. If more than one school district is liable for such a child during a single fiscal year, the total annual financial liability to the school districts shall not exceed the applicable state average per pupil cost, said liability to be prorated on a per diem basis. For such a child who is enrolled at Laconia developmental services for less than a full year, the liability for such costs shall be prorated on a per diem basis by Laconia developmental services.

4 Pupils; Compulsory Attendance Amended. Amend RSA 193:1, I (c) to read as follows:

(c) The relevant school district superintendent has excused a child from attendance because the child is physically or mentally unable to attend school, or has been temporarily excused upon the request of the parent for purposes agreed upon by the school authorities and the parent. Such excused absences shall not be permitted if they cause a serious adverse effect upon the student's educational progress. Students excused for such temporary absences may be claimed as full-time pupils for purposes of calculating [state aid under RSA 186-C:18 and] adequate education grants under RSA 198:41.

5 Statewide Education Improvement and Assessment Program; Duties of the Legislative Oversight Committee Amended. Amend RSA 193-C:8 to read as follows:

193-C:8 Duties of the Legislative Oversight Committee. The oversight committee shall:

I. Review the development and implementation of the program to ensure that they are in accordance with legislative policy. Implementation of the program shall be in conjunction with the committee's review.

II. Review the provisions of RSA 198:40, in the second year of each biennial legislative session, and recommend any legislation necessary to modify such provisions.

6 School Money; Reimbursement Anticipation Notes Amended. Amend RSA 198:20-d to read as follows:

198:20-d Reimbursement Anticipation Notes. Notwithstanding any other provision of law to the contrary, a school district or a city with a dependent school district may incur debt in anticipation of reimbursement [under RSA 186-C:18 and] under RSA 198:42. The governing body, after notice and public hearing, may elect to borrow such funds and to recognize the proceeds of the borrowing as revenue for property tax rate setting purposes by providing written notification to the commissioner of the department of revenue administration stating the specific amount of borrowing to be recognized as revenue. Any borrowing under this section shall be exempt from the provisions of RSA 33, relative to debt limits.

7 New Paragraph; School Money; State Aid for Educational Adequacy; Definitions Amended. Amend RSA 198:38 by inserting after paragraph X the following new paragraph:

X-a. "Adjusted average daily membership in residence" for a municipality shall be determined by dividing the total statewide average daily membership in residence, as calculated by adding the average daily membership in residence of each municipality in the state, by the total number of weighted pupils statewide, as calculated in paragraph VII of this section. The result shall be multiplied by the number of weighted pupils in a municipality.

8 School Money; Instructional Costs of Providing an Adequate Education. RSA 198:40 is repealed and reenacted to read as follows:

198:40 Instructional Costs of Providing an Adequate Education; State Aid.

I. For the fiscal year beginning July 1, 2002, and every fiscal year thereafter, the essential elements of an adequate education shall be:

(a) High quality classroom teachers.

(b) A commitment to ongoing professional development.

(c) Sufficient classroom materials to facilitate quality instruction.

(d) Instructional technology to facilitate quality instruction.

(e) Special education services sufficient to provide a free and appropriate education to special needs pupils.

(f) Supplemental assistance to needy communities.

(g) Adequate classroom space for instruction, including school building and educational administration building construction and renovation.

II. For the fiscal year beginning July 1, 2002, and every fiscal year thereafter, the cost of the essential elements of an adequate education as set forth in paragraph I shall be calculated as follows:

(a) The state shall be responsible for the cost of instructional services necessary to provide an adequate education to all public elementary and secondary school pupils. Each school district in the state shall receive an amount equal to the most recent available salary for a teacher possessing a master's degree plus 7 years of teaching experience multiplied by the most recent available adjusted average daily membership in residence for the school district as determined by the department of education, the product of which shall be divided by 20.

(b) The state shall be responsible for the cost of professional development of instructional staff. Each school district in the state shall receive an amount equal to not less than $50 per pupil multiplied by the most recent available adjusted average daily membership in residence for the school district.

(c) The state shall be responsible for the cost of sufficient classroom materials, textbooks, and other instructional supplies. Each school district in the state shall receive an amount equal to $100 per pupil multiplied by the most recent available adjusted average daily membership in residence for the school district.

(d) The state shall be responsible for the cost of instructional technology to facilitate quality instructional technology to facilitate quality instruction in all public elementary and secondary schools. Each school district shall receive an amount equal to not less than $50 per pupil multiplied by the most recent available adjusted average daily membership for the school district.

(e) The state shall be responsible for the cost of programs and services for educationally disabled children as provided in RSA 186-C.

(f) The state shall be responsible for providing supplemental assistance to needy school districts. The department shall determine the amount of supplemental assistance to be distributed pursuant to the following formula:

(1) Divide each municipality's total equalized valuation by its average daily membership in residence. The result shall be the municipal valuation per pupil.

(2) From the list of municipal valuations per pupil calculated in subparagraph (1) where the municipal valuation per pupil is greater than zero, determine the median. This result shall be the state median municipal valuation per pupil.

(3) For each of the municipalities where the municipal valuation per pupil is less than the state median municipal valuation per pupil, subtract the municipal valuation per pupil from the state median municipal valuation per pupil and divide the result by the state median valuation per pupil. Multiply this result by the municipality's average daily membership in residence. This shall be the municipal valuation differential.

(4) Determine the sum of all municipal valuation differentials.

(5) For each of the municipalities where the municipal valuation per pupil is less than the state median valuation per pupil, divide the municipal valuation differential by the sum of all municipal valuation differentials determined in subparagraph (4) and multiply the result by 75,000,000. The product shall be the amount of supplemental assistance distributed to each school district.

(g) The state shall be responsible for making grants available under the school building aid program set forth in RSA 198:15-a through 198:15-h.

(h) The state shall be responsible for other salaries, materials, programs, or services which are deemed in legislation to be instructional in nature and necessary for the provision of an adequate education.

III. State aid for instructional costs of providing an adequate education shall be paid to school districts legally responsible for the education of pupils who attend approved schools within the district or in other districts. Payment of such state aid for instructional costs shall be made during the fiscal year in which such aid is due.

IV. State aid for instructional costs of providing an adequate education shall be disbursed to school districts in the form of block grants.

V. Beginning July 1, 2003, and every July 1 thereafter, state aid for instructional costs of providing an adequate education as defined in paragraph II of this section shall be increased by 3 percent unless the general court decides otherwise.

VI. Nothing in this section shall be construed to affect, alter, or modify the provisions of RSA 198:43 relative to additional education expenditures, and RSA 198:48, relative to maintenance of local control.

9 New Section; Operational Costs for Providing an Adequate Education. Amend RSA 198 by inserting after section 40 the following new section:

198:40-a Operational Costs of Providing an Adequate Education. A school district shall be responsible for any other expenses or programs which the school district determines are necessary to meet local educational goals and objectives.

10 School Money; Determination of Adequate Education Grants Amended. Amend RSA 198:41, I to read as follows:

I. Except for municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the amount of the adequate education grant for the municipality as follows:

(a) [Multiply the average base cost per pupil of an elementary pupil by the weighted average daily membership in residence for the municipality;

(b) Add to the product of subparagraph (a), 70 percent of the municipality's apportioned transportation cost;] Add the sums resulting from the calculations set forth in RSA 198:40, II. Reimbursements made under RSA 186-C:18 shall be counted in the school year in which such reimbursements are made.

[(c)] (b) Subtract from the sum of subparagraph [(b)] (a) the amount of the education property tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year.

11 State Aid; Catastrophic Aid for Educationally Disabled Children. RSA 186-C:18 is repealed and reenacted to read as follows:

186-C:18 Catastrophic Aid.

I. The state shall be responsible for the cost of programs and services for educationally disabled children in public elementary and secondary schools of the state. The department of education shall determine the cost of programs and services for educationally disabled children using information from the most recent available DOE-25 report. Seventy-five percent of the cost determined in this subparagraph shall be distributed as catastrophic aid to school districts on a per pupil basis as calculated by the most recent available average daily membership in residence in each school district.

II. Beginning July 1, 2002, and every fiscal year thereafter, not less than 25 percent of the cost of programs and services for educationally disabled children as determined in this section shall be transferred from the education trust fund to this fund in each fiscal year. The moneys in this fund shall be non-lapsing. The state board of education shall adopt rules, pursuant to RSA 541-A, relative to prescribing forms to be used to apply for funds under this paragraph, administering and distributing catastrophic aid funds, and school districts applying for aid from the catastrophic aid fund. Under guidelines established by rules of the state board of education, the funds shall be used for the following purposes:

(a) School districts shall submit their catastrophic aid costs to the state board of education by June 30 of each fiscal year. The state board of education shall then verify the cost and distribute the appropriate amounts for the previous fiscal year on or before January 1 of each fiscal year.

(b) School districts shall submit their limited-English-proficient programs and services costs to the state board of education by June 30 of each fiscal year. The state board of education shall then verify the cost and distribute the appropriate amounts for the previous fiscal year on or before January 1 of each fiscal year.

(c) Upon approval of the state board of education, the department of education may use up to $200,000 in any fiscal year from the catastrophic aid fund for administration of the fund and for management and coordination of special education programs or services that are statewide in their scope. Upon approval of the state board of education, the department of education may use up to $800,000 in any fiscal year from the catastrophic aid fund for grants to school districts for special education programs or services that are statewide in their scope.

III. Not more than $2,000,000 from the catastrophic aid fund in each fiscal year shall be used to provide early literacy and reading improvement assistance to school districts to help students in kindergarten through grade 3 to read and write at grade level by the end of grade 3; to provide, develop, and evaluate outcome-proven programs and courses; and to provide technical assistance and professional development activities through grants, contracts with consultants, and employment of individuals to fill authorized, program-related positions. The administration of the early literacy and reading improvement program shall involve the following:

(a) Establishing forms and procedures for districts to use for the development and submission of early literacy and reading improvement grant requests, including:

(1) A detailed plan and budget, with the opportunity to request up to 3 years of financial assistance primary school professional development; and the further opportunity to apply for additional assistance based on demonstrated need.

(2) An assurance that grant funds will be used only to supplement and not supplant on-going local efforts.

(3) A description, if applicable, of how grant activities were planned in consultation with, and will be implemented in coordination with the goals of the initiative.

(4) A delineation of the geographic area to be served by the project.

(b) Providing assistance to districts in the development of grant requests.

(c) Establishing an equitable grant review process that:

(1) Includes an evaluation of each proposal's adequacy, educational appropriateness, and cost effectiveness, and the extent to which additional revenues are required to implement the proposed plan and activities.

(2) Gives priority to districts with lower-performing schools in reading and which are proposing reasonable efforts to address early literacy needs and/or improve reading performance.

(d) Reviewing grant requests with recommendations for approval, including level of funding and, to the extent possible, balanced geographic distribution.

(e) Distributing grant payments to school districts in accordance with an established payment schedule specified in the district's grant approval notification.

(f) Monitoring the implementation of funded plans and activities.

(g) Evaluating the educational impact of the early literacy and reading improvement program on reading skill and comprehension in students in kindergarten through grade 3.

(h) The state board shall, pursuant to RSA 541-A, and not later than July 1, 2002, adopt rules relative to the administration of the early literacy and reading improvement program established in this paragraph.

IV. A school district that receives state funding for special education under this paragraph shall apply for all available federal assistance for educationally disabled pupils, including any funds available through the Medicaid program. The state board of education shall adopt rules, pursuant to RSA 541-A, to implement this requirement.

V. Moneys from the catastrophic aid fund shall be used to reimburse school districts for the cost of transportation of vocational education pupils who reside in the district, in accordance with the distribution schedule in subparagraph II(a).

12 Repeal. The following are repealed:

I. RSA 198:38, XI relative to the definition of transportation costs.

II. RSA 198:38, V-VI, relative to the definitions of "base expenditure per pupil," and "average base cost per pupil of an elementary school pupil."

13 Effective Date. This act shall take effect July 1, 2002.

LBAO

02-3158

Revised 3/4/02

SB 424 FISCAL NOTE

FISCAL IMPACT:

METHODOLOGY: