HB 1601-FN-LOCAL – AS AMENDED BY THE HOUSE
15Feb2006… 0789h
2006 SESSION
04/10
HOUSE BILL 1601-FN-LOCAL
AN ACT relative to the funding of catastrophic special education aid and making an appropriation to the department of education to support the Laurent Clerc Academy.
This bill changes the formula used to determine liability for catastrophic aid expenses. The bill also makes an appropriation to the department of education for the 2006 and 2007 fiscal years to support the Laurent Clerc Academy.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15Feb2006… 0789h
06-2645
04/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to the funding of catastrophic special education aid and making an appropriation to the department of education to support the Laurent Clerc Academy.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Special Education; State Aid. Amend RSA 186-C:18, III-IV to read as follows:
III.(a) The state board of education through the commissioner, department of education, shall distribute aid available under this paragraph as entitlement to such school districts as have a special education pupil for whose costs they are responsible, for whom the costs of special education in the fiscal year [exceed 3 1/2] exceeds the sum of 3 times the school district’s [estimated state] average expenditure per pupil for non-special education pupils for the school year preceding the year of distribution. If in any year, the amount appropriated for distribution as catastrophic special education 186-C:18 aid in accordance with this section is insufficient therefor, the appropriation shall be prorated proportionally based on entitlement among the districts entitled to a grant. If there are unexpended funds appropriated under this paragraph at the end of any fiscal year, such funds shall be distributed for court-ordered placements under RSA 186-C:19-b. The state may designate up to [$250,000] $900,000 of the funds which are appropriated as required by this paragraph, for each fiscal year, to assist those school districts which, under guidelines established by rules of the state board of education, may qualify for emergency assistance for special education costs. Upon application to the commissioner of education, and approval by the commissioner, such funds may be accepted and expended by school districts in accordance with this chapter; provided, however, that if a school district has received emergency assistance funds for certain educationally disabled children, it shall not receive catastrophic special education aid for those same educationally disabled children. If any of the funds designated for emergency assistance under this paragraph are not used for such emergency assistance purposes, the funds shall be used to assist school districts in meeting catastrophic cost increases in their special education programs as provided by this paragraph.
(b) The school district shall be liable for [3-1/2] 3 times the [estimated state] school district’s average expenditure per pupil for non-special education pupils for the school year preceding the year of distribution, plus 20 percent of the additional cost, up to [10] 8 times the [estimated state] school district’s average expenditure per pupil for non-special education pupils for the school year preceding the year of distribution.
(c) The department of education shall be liable for 80 percent of the cost above the [3 1/2] 3 times the [estimated state] school district’s average expenditure per pupil for non-special education pupils for the school year preceding the year of distribution, up to [10] 8 times the [estimated state] school district’s average expenditure per pupil for non-special education pupils for the school year preceding the year of distribution. The department of education shall be liable for all costs in excess of [10] 8 times the [estimated state] school district’s average expenditure per pupil for non-special education pupils for the school year preceding the year of distribution.
IV. The state shall appropriate [$300,000] $1,000,000 for each fiscal year to assist special education programs that are statewide in their scope, and that meet the standards for such programs established by the state board of education. Funds under this paragraph shall be administered and distributed by the state board of education through the commissioner.
2 Statement of Purpose. The general court finds that elementary and secondary education for students who are deaf or hard of hearing should be provided in an environment that is respectful of the culture of the deaf and hard of hearing. Since a linguistically accessible environment is generally the least restrictive environment for deaf and hard of hearing students, such an environment would be consistent with the Individuals with Disabilities Education Improvement Act of 2004.
3 Appropriation. There is appropriated the sum of $186,000 for the fiscal year ending June 30, 2006, and the sum of $241,000 for the fiscal year ending June 30, 2007, to the department of education which shall use such funds to support the Laurent Clerc Academy in providing elementary and secondary education for deaf and hard of hearing students. The governor is authorized to draw a warrant for said sums out of any money in the treasury not otherwise appropriated.
4 Effective Date.
I. Section 1 of this act shall take effect 60 days after its passage.
II. The remainder of this act shall take effect upon its passage.
LBAO
06-2645
Amended 3/9/06
HB 1601 FISCAL NOTE
AN ACT relative to the funding of catastrophic special e3ducation aid and making an appropriation to the department of education to support the Laurent Clerk Academy.
FISCAL IMPACT:
The Department of Education indicates this bill, as amended by the House (Amendment #2006-0789h), will increase state general fund expenditures and local revenue by an indeterminable amount in FY 2006 and each year thereafter. There will be no fiscal impact on state and county revenue or county and local expenditures.
This bill appropriates $186,000 for the fiscal year ending June 30, 2006 and $241,000 for the fiscal year ending June 30, 2007 from the general fund to the Department of Education to support the Laurent Clerc Academy for deaf and hard of hearing students.
METHODOLOGY:
The Department indicates that currently, in order to become eligible for catastrophic aid, a district’s special education costs must be 3.5 times the estimated state average expenditure per pupil. This bill changes the district share of expenditures to become eligible for catastrophic aid to 3 times the school district’s average expenditure per pupil for non-special education pupils. This bill also provides that $900,000 may be paid for emergency aid for special education (currently $250,000), that the State would be responsible for all special education costs above 8 times the school district’s average expenditure per non-special education pupil (currently 10 times the estimated state average expenditure per pupil), and increases the required annual appropriation for statewide special education programs from $300,000 to $1,000,000. The Department estimates that when adjusted to 100% of transportation, reimbursements for catastrophic aid between the 2002-2003 and 2003-2004 school years increased by 10.26%. For the purposes of determining the fiscal impact of this bill, the Department applied this increase to arrive at an estimated entitlement amount for FY 2005 of $33,794,043. Assuming reimbursements will continue to increase at 10.26% annually, $900,000 would be paid for emergency aid for special education, and $1,000,000 would be appropriated for statewide special education programs, the Department estimates catastrophic aid reimbursements under this bill as follows:
Catastrophic Aid Emergency Statewide
Entitlement Aid Special Education Total
FY 2006 $37,261,312 $900,000 $1,000,000 $39,161,312
FY 2007 $41,084,322 $900,000 $1,000,000 $42,984,322
FY 2008 $45,299,574 $900,000 $1,000,000 $47,199,574
FY 2009 $49,947,310 $900,000 $1,000,000 $51,847,310
FY 2010 $55,071,904 $900,000 $1,000,000 $56,971,904
In FY 2006, state operating budget appropriations are $29,000,000 for catastrophic aid and $300,000 for statewide special education, for a total of $29,300,000. In FY 2007, appropriations are $32,190,000 for catastrophic aid and $300,000 for statewide special education, for a total of $32,490,000. This would result in a difference of $9,861,312 in FY 2006 and $10,494,322 in FY 2007 over appropriated amounts. The provisions in current law which require amounts appropriated for distribution as catastrophic aid under RDA 186- to be prorated proportionally based on entitlement among the districts entitled to a grant in the event that appropriated funds are insufficient would still apply.
The Department assumed the entire appropriation for the Laurent Clerc Academy would be expended in each of fiscal year 2006 and 2007.