New Hampshire School Boards Association
Legislative Bulletin
January 9, 2009
Welcome Back to Another Legislative Session with Education Updates from NHSBA
The 2009 Legislative Session is now underway.
Both the NH House and Senate have convened and organized for the 2009 session. Committees have begun scheduling activities, with most having information sessions from relevant departments/agencies as they begin their new work. Hearings on bills are also underway, with several hearings on proposed legislation scheduled for next week.
Rep. Emma Rous of Durham will again chair the House Education Committee, with Rep. Judith Reever of Laconia as Vice Chair. The House Finance Committee is again chaired by Rep. Marjorie Smith of Durham, with Rep. Sharon Nordgren of Hanover as Vice Chair. The Executive Departments & Administration Committee is again chaired by Rep. Anne-Marie Irwin of Peterborough, with Rep. Laurie Harding of Lebanon as Vice Chair.
In the Senate, the Education Committee will now be chaired by Senator Molly Kelly of Keene, with Senator Amanda Merrill of Durham as Vice Chair. The Senate Finance Committee is again chaired by Senator Lou D'Allesandro of Manchester, with Senator Harold Janeway of Webster as Vice Chair. The Senate Executive Departments and Administration Committee is now chaired by Senator Jacalyn Cilley of Barrington with Senator Martha Fuller Clark of Portsmouth as Vice Chair.
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State Budget and Economy are Priority
Economic conditions and crafting a state budget for the next two fiscal years will dominate much of the legislature's time. During his inaugural address, Governor Lynch acknowledged the financial challenges we are facing due to the current recession. It has created a budget gap this year and will impact the state's next budget. Corrective action on the current FY 2009 budget was taken last year, cutting approximately $150 million. Almost another $100 million may need to be cut before June. Details of cuts may depend upon anticipated revenues from a possible federal stimulus package. In addition, current estimates for state revenues falling short by as much as $500 million over the next two fiscal years will make budget development for the coming biennium (2010 and 2011) very difficult.
During these tough budget deliberations, it will be extremely important to maintain the current levels of state aid that have been committed to school districts. There should be no allowance for attempts to simply downshift the state's problem to the local level and taxpayers. This is precisely what happened last fall when special education catastrophic aid and school building aid were cut, with distributions totaling only 85% and 95% respectively of promised levels.
A major concern for school districts will be the appropriation for State Adequacy Aid. Last November, school districts were noticed of Adequacy Aid, Fiscal Disparity Aid, and Transition Grants totaling $577,597,142. An additional $363,165,834 is to be raised from the $2.13 statewide education property tax, for a total of $940,762,976. The $577.6 million in grants to districts represents an increase of $50.2 million (over last year's grants of $527.4 million) for each year of the biennium, an impact of over $100 million on the state budget.
Funding for other state aid programs (Building Aid, Cat Aid, Tuition/Transp. Aid, Reading Recovery, Dropout Prevention, Statewide Special Education, Local Ed Improvement, Career Tech Student Orgs, and Kindergarten Construction) will need to increase from the current FY 2009 level of $90 million to $114 million in 2010 and $121 million in 2011. Ten million in new money each year will be needed for kindergarten construction, and anticipated increases in Cat Aid will require an additional $7.3 million in 2010 and another $4.2 million in 2011. Building Aid is expected to increase by $2.4 million next year and another $1 million in 2011. These important state aid programs will need to be monitored closely during the budget development process.
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NHSBA Delegate Assembly - Saturday, January 17, 2009
Be sure to attend the 2009 NHSBA Delegate Assembly on Saturday, January 17th. Morning "Hot Topic" Session Updates will be offered on labor relations (non-renewal, evergreen statute), right to know law and retirement issues. NSBA Associate Executive Director Michael Resnick will review and preview Federal education legislation, followed by action on NHSBA proposed resolutions. Call 603-228-2061 for more details or to register; or email terry@nhsba.org.
For more information on specific legislation, please call Dean Michener, NHSBA Director of Governmental Affairs at 603-228-2061, or email: deanm@nhsba.org.
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Dean Michener
NHSBA Director of Governmental Affairs
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