May 15, 2009 NHSBA Legislative Bulletin

State Budget Update
Legislators continue to work on the State Budget, but most activity occurs in the halls or backrooms. Information on various state aids, with current funding levels and the potential impact of losses in aid for local budgets, can be found in NHSBA's May 1 Bulletin (May 1, 2009). Specific information is provided on building aid, catastrophic aid, and tuition & transportation aid as well as potential cuts in the state share of retirement costs.

ACTION ITEM
School board members should continue to talk with their senator and explain the impact of downshifting costs to the local level. The current shortfalls this year in Cat Aid and Building Aid, as well as anticipated pro-ration next year, forces unexpected impacts on local budgets. While all senators and representatives acknowledge the importance and need of building aid, the current state budget has no provision for these grants in the next biennium. This aid represents the basis of a partnership that is created when school districts adopt local construction projects and bond the expense. The state commitment is an important part of this process and loss of this commitment would have a profound impact at the local level.

Board members are also encouraged to remind their senator that with respect to district payment of retirement contributions, the State promised to pay 35% of the employer share for teachers, police and firefighters. House Legal Counsel, David Frydman, has noted, "political subdivisions are protected by Article 28-A from the State reneging on payment of state's 35% share of retirement contributions on behalf of teachers, police and firefighters. Since it was the arrangement that the State provided when municipalities joined NHRS, it would be an unfunded mandate if the State were to cease payments."
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Retirement and "Spiking"
HB 641 was amended by the Senate on a voice vote and subsequently sent to the Senate Finance Committee for further review. The amended bill requires NHRS to "develop a specific methodology for individuals retiring after July 1, 2010 that determines the amount of the employer assessment for excess benefits charged". A report on the methodology is to be submitted no later than December 1, 2009.

ACTION ITEM
School board members should contact their senator and continue to support this revision to the bill. The House version only modified the calculation of assessments for excess benefits paid to retirees and phased in the required payments over 4 years. It did not address the issue of earnable compensation and what constitutes the basis for pension benefits. The Senate amendment, in conjunction with SB 108, which establishes a study committee and includes the topic of earnable compensation, allows time to study the spiking issue and the corresponding impact on collective bargaining agreements as well as budgets.
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Senate Education Committee
The Senate Education Committee made the following recommendations to be considered by the full Senate during its session scheduled for May 27th.
HB 169, which requires that pupils attending an approved chartered public school be counted in the average daily membership in residence for the district in which they reside, was recommended for approval. This bill was a request of the Department of Education and basically acknowledges and maintains their current practice.

HB 332, which establishes a commission to study school discipline, was recommended for approval with slight amendments. The focus of the commission will be to: 1) examine the use of out of school suspensions and the effect on suspended students who miss instructional time; 2) examine student behaviors or infractions requiring disciplinary action and the types of violations for which students are suspended; 3) study the frequency of using out of school suspensions for non-violent behavior and infractions which are not drug or alcohol related; 4) investigate alternative forms of discipline that do not involve removing students from school, such as alternative dispute resolution and positive behavior reinforcement techniques; and 5) study methods for increasing opportunities for suspended students to make up class work missed for disciplinary reasons. The recommended amendments are to decrease the number of senators on the commission from two down to one, and to change the reporting date to on or before November 1, 2009.

Consideration of HB 143, implementing a procedure to be followed when parents choose to request placement of their child in a school other than their district of residence, was delayed until next Tuesday when the committee next meets. Other bills likely to be considered next week are: HB 154, requiring school board policies on truancy to include provisions which define administratively excused absences and identify a system of intervention steps designed to reduce the number of habitual truants. The policy shall also designate an employee in each school as the person responsible for truancy issues: HB 509, requiring parental consent for psychological evaluations: and HB 688, relative to the chartered public school approval process and removing the requirement of an initial district meeting vote prior to submitting a locally developed plan to the school board. Instead, a public hearing is required as the school board considers the application.
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Renovation and Replacement of School Buildings - SB 59
The House Education sub-committee that has been working on this bill failed to arrive at a consensus on a recommendation to the full committee. Sub-committee votes to kill the bill, and one to amend the bill and move it forward, both failed on tie votes; there was then a subsequent unanimous recommendation to retain the bill for further study and possible changes next year. Sub-committee members struggled with language requiring districts to investigate feasible options when deciding to renovate or replace existing facilities. There was also concern over possible requirements for the solicitation of input from various town boards, departments and/or officials, and how any construction would align with principles of "effective statewide planning" and/or "smart growth". The full House Education Committee will consider this bill when it next meets (currently not scheduled).
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National News: President releases FY 2010 Budget Details
Last week the White House released information on it's FY 2010 budget. Proposed funding amounts for key education programs are:

·   $13 billion for ESEA Title I Grants to LEAs, a $1.5 billion decrease from the regular FY 2009 level.

·   $1.5 billion for ESEA Title I School Improvement Grants, an increase of $1 billion over the regular FY 2009 level. States would be required to use at least 40 percent of the funds for middle and high schools.

·   $11.5 billion for IDEA Part B Grants to States, the same as the regular FY 2009 level.

·   $500 million for a new program of ESEA Title I Early Childhood Grants for school districts to establish or expand preschool programs.

·   $300 million for the new Early Learning Challenge Fund to provide grants to states to improve the quality of publicly funded preschool programs.

·   $517 million for the Teacher Incentive Fund to support comprehensive strategies to reward teachers, principals and other personnel who raise student achievement and work in hard-to-staff schools.

·   $50 million for the High School Graduation Initiative to help school districts test and implement strategies to increase the graduation rate.

Note: Last year (FY 2009) Title I was funded at $14.5 billion in local grants to school districts with an additional $500 million in school improvement grants for states. In this proposed FY 2010 budget, the total funding for the two programs (formula grants to school districts and school improvement grants) is $14.5 billion, a combined cut of $500 million. While stimulus money helps offset the loss, this represents a reduction of the local formula funding base that will need to be addressed in future years.
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