HB 569-FN-A-LOCAL - AS INTRODUCED
2003 SESSION
04/09
HOUSE BILL 569-FN-A-LOCAL
This bill repeals the education property tax and sets the statewide dollar amount for an adequate education at zero dollars.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-0436
04/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT relative to the dollar value of an adequate education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Repeal. The following are repealed:
I. RSA 21-I:18, I(1), relative to the purchase of services by the department of administrative services for the administration of low and moderate income homeowners property tax relief.
II. RSA 76:3, relative to education property tax.
III. RSA 83-F:9, relative to an exemption from the education property tax.
IV. RSA 198:56-61, relative to low and moderate income homeowners property tax relief.
2 School Money; Determination of Per Pupil Adequate Education Cost and Adequate Education Grant. RSA 198:40 is repealed and reenacted to read as follows:
198:40 Determination of Per Pupil Adequate Education Cost and Adequate Education Grant. For the biennium beginning July 1, 2003, and every biennium thereafter, the cost per pupil shall be established as follows:
I. The state cost for an adequate education shall be zero dollars.
II. The state adequacy cost of zero dollars shall not be construed to limit or impair state targeted aid to individual schools, school districts, or local educational initiatives.
3 Effective Date. This act shall take effect July 1, 2003.
LBAO
03-0436
1/24/03
HB 569-FN-A-LOCAL - FISCAL NOTE
AN ACT relative to the dollar value of an adequate education.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will decrease state education trust fund revenue by $588 million in FY 2004 and $617.4 million in FY 2005 and decrease state general fund expenditures by $300,000 in FY 2004 and $306,000 in FY 2005. The Department of Education indicates this bill will decrease state education trust fund expenditures and local revenue by $955 million in FY 2004, $968 million in FY 2005, $1.1 billion in FY 2006 and $1.1 billion in FY 2007. There will be no fiscal impact to county revenue or county and local expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill repeals the statewide property tax and will therefor reduce property tax receipts by $588 million in FY 2004. The Department assumed a 5% property value increase to estimate the FY 2005 decrease of $617.4 million. The Department also anticipates a reduction in the expense to administer the property tax relief provision which is repealed in this bill, $300,000 for FY 2004 and $306,000 for FY 2005. The Department did not estimate beyond FY 2005.
The Department of Education states this bill will eliminate the state adequate education grants to local school districts beginning in FY 2004.