November 6, 2009 NHSBA Legislative Bulletin

State Building Aid
The Building Aid program was fully funded for the biennium and represents the state's continued commitment to promises made concerning the state share of annual principal payments. However, this funding was achieved by bonding the full amount ($44.9 million in 2010 and $46.2 in 2011) as well as $40 million for last year's FY '09 allocation. Proceeds from the Rooms & Meals Tax will be used to cover the state's debt payments on these bonds. Amid concerns over the rising cost associated with the current building aid formula and revenues available to fund the program, a Committee to Study the School Building Aid Grant Program was created to study the goals of the program, sources and amounts of state funding, and eligibility criteria. The committee has been meeting regularly and received extensive information from several local districts, the Department of Education and the State Treasurer. One thing that is clear is that the state cannot afford to continually bond its annual building aid obligations: such a strategy results in unrealistic annual debt payments within 10 years. The committee is continuing its work and must submit an interim report by December 15, 2009 with a final report due next fall by November 1, 2010.
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Virtual Learning Academy Charter School (VLACS)
Charter schools now receive adequate education grants of $5,450 per pupil ($3,450 universal aid plus $2,000 fiscal capacity disparity aid). However, due to concern over increasing enrollments at VLACS, and what represents an appropriate cost per pupil for an "on-line" school, a Memorandum of Understanding was agreed to that will limit state funding of VLACS students to 500 fte students in 2010 and 580 in 2011. A task force was established to study the state funding for VLACS and review what the cost is to the state for students who are dual-enrolled at their local resident school, and what potential savings may be associated with these students. The committee will attempt to determine an appropriate cost/pupil and review what is necessary to provide continued support to VLACS in a manner that eliminates dual payment by the state and is fair and equitable to school districts. A report is due by December 15, 2009.
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Retirement
Retained HB 673 - This bill allows political subdivisions in the retirement system to withdraw all employees or all non-vested employees from the retirement system and changes the procedure for withdrawal of participation. A sub-committee of the House Executive Departments and Administration Committee has been reviewing this bill, with input and suggestions provided by school, town and county representatives. Retained bills must receive a committee recommendation by December 2, 2009 and be acted on during the coming session starting in January.

Spiking and Earnable Compensation - SB 108 from last session created a Committee to Study the Imposition of Assessments to Retirement System Employers for Excess Benefits Paid to Retirees. The Committee is studying the law requiring the imposition of assessments to employers for excess benefits paid to retirees (spiking), and should also address the issue of earnable compensation for employees. NHRS is scheduled to brief the committee next week. An interim report is due this fall and a final report by November 1, 2010.
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Right-to-Know
The House Judiciary Committee has been working on several retained bills. The Committee will be making recommendations later this month on HB 53, seeking compromise clarification for what constitutes a 'public body' as well as HB's 135 and 425, which address remedies for violations of the right-to-know law.
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Labor Relations
The House Labor Committee continues to work on HB 631, which changes the timeline for negotiations, starting the process in the spring, if no agreement by August, then impasse with mediation in September. If there is still no agreement, the bill creates a "neutral impasse panel" that "shall make a just and reasonable determination of the matters in dispute". Committee work on this bill is scheduled to continue next week.
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House Education Committee
The House Education Committee is scheduled to meet on Thursday, November 19 to make recommendations on HB 327, eliminating median family income as a factor in calculating fiscal capacity disparity aid; HB 560, relative to the use of state education funds for extended learning opportunities for certain pupils; HB 615, relative to withdrawal from a school administrative unit; HB 368, relative to annual goals in a home education program; and SB 59, relative to the renovation and replacement of school buildings.
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Senate Education Committee
The Senate Education Committee is scheduled to meet next Thursday, November 12 to make recommendations on HB 143, relative to parentally placed children in a non-resident public school; HB 154, making changes to the laws on truancy and reducing the required number of unexcused absences from twenty to ten to constitute "habitual truancy"; and HB 509, requiring parental consent for psychological evaluations by school districts.
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NHSBA Delegate Assembly - Saturday, January 16, 2010
Be sure to mark your calendar now for the 2010 NHSBA Delegate Assembly on Saturday, January 16th, at the Local Government Center in Concord, NH.
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