Legislative Bulletin
April 10, 2009
A Brief Summary of Education Issues at the State House
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House Adopts Budget: HB 1 - HB 2 - HB 25
The House adopted its version of a budget that now goes to the Senate for further deliberations.
HB 1, the schedule of expenditures for each agency, contains full funding for Adequate Education Aid, including Fiscal Capacity Disparity Aid and Transition Aid. In other categorical aids, building aid was left unfunded. Disagreement over whether or not to bond $83 million in school building aid left this needed local aid out of the mix. It will be important to restore this program in the senate, and school board members are urged to contact their senator and explain the local impact of losing promised state support for annual bond payments.
Other categorical aids were funded at levels originally proposed by the governor: Cat Aid at $32 and $33 million annually, Tuition & Transp. Aid at $7.3 and $7.5 million, Dropout Prevention at $1.75 million each year, Local Ed Improvement at $485,000 and $500,000, and Kindergarten Construction at $3.6 million for only the first year. Reading Recovery has a $1 placeholder in hopes of finding federal sources to fund this program.
HB 2, the "trailer bill" containing details of changes to tax rates, fees, etc., includes authorization for the state to bond $40 million of school building aid expenses for the current 2009 fiscal year. It also increases the contribution rates for retirement system members only for the coming biennium (employees and teachers, from 5.0 to 7.0%; permanent police and fire from 9.3 to 11.0%). Employee rates would return to 5% and 9.3% respectively in July 2011. Monies from the temporary increase are to be used to reduce the previously certified employer contributes rates for fiscal years 2010 and 2011. The bill also reduces the state share of payment on the annual employer contribution. The current state 35% share of the teacher rate drops to 30% for FY 2010, then down to 25% for FY 2011. Beginning in FY 2012, the state share returns to 35%.
HB 25, the capital budget, no longer contains bonding for school building aid payments. The Public Works Committee was unanimous in its recommendation that school building aid does not belong in the capital budget. Bonding the full biennial payment would have consumed 2/3 of the general fund bonding capacity for the state and, if left in the capital budget in the future, would eventually entirely eliminate the general fund bonding capacity for other state capital projects. However, the bill does maintain the state's continuing commitment to fund biennially the renovation of two career technical centers: $15.8 million is allocated for regional career technical centers in Wolfeboro (Governor Wentworth) and Littleton.
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Senate approves changes relative to the renovation and replacement of school buildings
The Senate passed SB 59, which would make changes to all new construction of public school buildings. The proposal requires districts to "investigate all feasible options in the course of deciding to renovate or replace an existing school building. In considering such options, the district shall seek input from the public, the local planning board, and municipal authorities, including local elected officials, police, fire, and public works personnel. As part of their final recommendation on the chosen construction alternative, the school board of a school district considering a construction or renovation project shall demonstrate how the school building project conforms to the community master plan and local planning and zoning regulations." The bill now goes to the House for review and consideration.
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Accountability for an Adequate Education - SB 180
SB 180, the proposal to establish an accountability system to ensure schools are providing the opportunity for an adequate education, will have a public hearing next Tuesday, April 14, at 11:00 before the House Education Committee (room 207, LOB).
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U.S. Congress Budget Update
Last week, both the House and Senate voted and approved the Administration's budget for FY 2010. The House passed the bill by a vote of 223 to 196, and the Senate passed the bill by a vote of 55 to 43. There were some slight differences between the House and Senate versions, which must be resolved in a conference committee.
At a hearing before the House Budget Committee in March, U.S. Secretary of Education Arne Duncan stated that the Administration's budget request for the Department of Education is $46.7 billion, which reflects a $500 million increase from FY2009. The funding is in addition to $81.8 billion in grants for K-12 programs from the American Recovery & Reinvestment Act. The Secretary added that the budget request includes additional resources for high-quality early education, academic standards and assessments, and recruitment and support for high-quality teachers and principals. The complete budget request will be released later in April and it will include details about specific program allocations, such as Title I grants and special education.
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Economic Stimulus Update
Distribution and Implementation of ARRA FundsU.S. Secretary of Education Arne Duncan announced the availability of funds under the American Recovery and Reinvestment Act which includes (nationally): 67% of the state stabilization funding ($32.6 billion); $5 billion of Title I grants; and half of special education (IDEA), which is $6.1 billion. The remaining funds will be distributed in the Summer/Fall of 2009.An extensive document, "Guidance on the State Fiscal Stabilization Fund Program" <http://www.ed.gov/programs/statestabilization/guidance.pdf> was also released which provides additional guidance to states regarding how the funds can be spent and what information states should provide, including information on Maintenance of Effort requirements. ___________________________________
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.
