Jan. 30, 2009 NHSBA Legislative Bulletin

New Hampshire School Boards Association
Legislative Bulletin
January 30, 2009

A Brief Summary of Education Issues at the State House
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Constitutional Amendments Revisited

Next Thursday, February 11, the House Education Committee will hear two proposals for Constitutional amendments, both designed to reverse the basis of the Supreme Court rulings in the Claremont and Londonderry cases.

ACTION ITEM
Please contact the House Education Committee Chair and express your opposition to this bill and the potential losses in state aid to school districts. Last year, NHSBA adopted a specific resolution addressing this issue:
The NHSBA opposes any constitutional amendment that vacates the spirit and intent of the Claremont and Londonderry lawsuits and attempts in any way to limit or redirect funding in a manner that is contrary to the New Hampshire Supreme Court's ruling and present interpretation of the New Hampshire Constitution.

CACR 3 also addresses the Claremont rulings, deleting the reference to "cherishing the interest of literature and the sciences", replacing it with language that the legislature should encourage the interest of literature and the sciences. A hearing is scheduled for 02/05/2009 at 11:00 am in LOB 207.

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Adequacy Formula Revisited?

Next Wednesday, February 4 at 1:00 pm, the House Education Committee will hold a hearing on HB 521. This proposal amends the educational adequacy formula for how calculations are made concerning eligibility for the federal free and reduced-price meal program. Currently, when a school's proportion of free/reduced-price meal eligible students is either 12-24%, 24-36%, 36-48% or greater than 48%, each student in the school receives an additional $863, $1,725, $2,588 or $3,450 respectively per pupil in adequacy money. HB 521 would reduce that allocation by only providing the additional money for those students actually eligible, not all students in the school. The overall financial impact is a decrease in statewide adequacy aid: due to the hold harmless/transition provision, the cut in state aid for FY 2010/2011 is approximately $32 million; for FY 2012/13, the cut in state aid is over $140 million.

ACTION ITEM
Please contact the House Education Committee Chair and express your opposition to this bill that simply downshifts the state's problem to the local level. Furthermore, school district budgeting has been well underway since last fall, and has relied on official State Dept. of Education estimates for state aid that were announced last November. Any reductions to FY 2010 state aid will occur AFTER March school district meetings and result in direct cuts to local budgets.
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Upcoming Retirement Legislation

Several bills have now been scheduled before the House Executive Departments and Administration Committee. Proposals address several issues, including the "125% spiking rule", defining earnable compensation and membership on the NHRS Board of Trustees. Specifically:

125% Spiking Rule
HB 223 establishes a moratorium until December 1, 2009 on implementing the retirement system employer assessments for excess benefits under RSA 100-A:16, III-a. A public hearing is scheduled for 2/5/09 at 1pm in LOB 306.

HB 641 modifies the method of calculation of excess benefit employer assessments to allow credit for any projected value that has already been funded through normal employer contributions. The bill also provides a 4-year phase-in period, collecting 25% in FY10, 50% in fy11, 75% in FY12 and 100% thereafter. A hearing is scheduled for 2/11 at 2pm in LOB 306.

NHRS Board of Trustees
HB 289 removes current requirements and procedures for appointment to the board of trustees while adding the requirement that all appointed board members shall have experience in finance, business, or investment. A hearing is scheduled for 2/11 at 10am in LOB 306.

HB 401 reduces from 14 to 8 the number of members of the board of trustees. The eight representatives from each member category of Groups I and II are reduced to 2 (one representative for each Group). Two non-members with financial experience are to be appointed by governor and council. The remaining four trustees: one senator, one representative, one from local government and the state treasurer. A hearing is scheduled for 2/3 at 11am in LOB 306.

Earnable Compensation and Other Issues
HB 532 removes extra or special duty pay from the definition of earnable compensation used in the calculation of retirement system benefits. However, the bill leaves intact the inclusion of overtime pay, holiday and vacation pay, sick pay, longevity or severance pay, and additional pay for extracurricular and instructional activities. A hearing is scheduled for 2/5 at 2:45pm in LOB 306.

HB 591 limits an employee's initial retirement benefit to 100% of base pay. A hearing is scheduled for 2/11 at 2:45pm in LOB 306.

HB 673 allows political subdivisions to withdraw all employees or all non-vested employees from the retirement system and revises the procedure for withdrawal of participation. A hearing has not yet been scheduled.

For the complete text of any bill, go to the general court web site and enter the bill number, e.g. HB114, SB38 or CACR2 (no spaces!), and make sure the Session Year is 2009.

For more information on specific legislation, please call Dean Michener, NHSBA Director of Governmental Affairs at 603-228-2061, or email: deanm@nhsba.org.