April 30, 2010 NHSBA Legislative Bulletin

Instructional Day/Hours

HB 1469, relative to instructional days and hours, reflects a specific NHSBA resolution brought forward by the Governor Wentworth school board. The bill simply seeks to remove the requirement for Commissioner of Education approval when a calendar complies with Dept. Educ. rules. Current law requires a school year of EITHER 180 days OR the equivalent hours of instruction. In 2005, rules were adopted that specify the required number of hours at the elementary and secondary level. Current law requires Commissioner approval if using the option based on hours, but this approval is unnecessary since rules stipulate what is required. Districts should not have to seek department approval when complying with law and rules. This bill had no opposition in the House; was supported 15-0 by the House Education Committee and passed the House on a voice vote. There was no opposition at the Senate hearing, but after receiving advance notice and language of the bill last September, and remaining silent throughout the public hearing process, Education Commissioner Barry submitted a letter of opposition after the public hearing. The Senate Education Committee then voted to recommend killing the bill (ITL) on a 4-1 vote.

ACTION ITEM
Please contact your local senator and urge their opposition to the committee report of ITL. Ask them to overturn the ITL and then support passage (OTP) of the bill. The commissioner was silent throughout the process and her letter speaks to concerns with school days based on hours, issues that were addressed when the rules were adopted in 2005. She acknowledges that to date, no requests for approval of such calendars have been disapproved. The real question is on what basis would a calendar complying with required rules be disapproved? Districts must still report their calendars annually to the Dept., which could then take appropriate action if necessary.
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Labor Bill Requiring Notice to Education Support Staff and Non-certified Employees
HB 1411, requiring notice to educational support personnel and non-certified school district employees and opposed by NHSBA, is scheduled for a vote next Tuesday by the Senate Education Committee. This bill requires the superintendent to notify, in writing, all qualified education support personnel and non-certified school district employees, who have completed their probationary employment period, of the intent to continue or not to continue that employment into the next school year. Based on NEA testimony indicating that such notice was simply to provide employees with "intent" of the district, Senator Bragdon has offered language to clarify that such notice is not a binding commitment of the district.

ACTION ITEM
Please contact the Senate Education Committee and your local senator to voice your opposition to this important bill. There has been no demonstrated problem indicating the need for this bill. Many districts currently provide notice based on a collective bargaining agreement, local policy or an employee handbook. The bill is not clear whether part-time employees are included as well as full-time employees. The bill provides for the notification to include "special circumstances as may be defined by the employer", but what happens if "circumstances" change after the notice but prior to the school year (budget, cuts in state/federal funding sources, enrollment and corresponding staffing needs)? The proposed requirement significantly reduces the flexibility that a school district needs to meet ever changing and fluctuating needs. At a minimum, Senator Bragdon's clarification should be incorporated into the bill.
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Adequacy Aid Update
SB 465, relative to the transition period for implementing the adequacy aid formula, remains under discussion and review by the House Finance Committee. As passed by the Senate, the bill extended the hold harmless/collar provisions for calculating the distribution of education adequacy grants one year, through the 2012 fiscal year. However, on an 11-8 vote, the committee rejected various extension proposals and recommended deleting the extension as well as the provision that would prevent approximately 40 communities from paying approximately $15.7 million in 'excess' statewide property tax payments (donor towns). The proposed amendment would allow those districts anticipating less adequacy aid in FY 2012 compared to what is received in FY 2011 to carry forward an unreserved fund balance in fiscal years 2010 and 2011. These funds would then be used to offset the FY 2012 tax rate. The provision for a committee to study the sustainability of the existing state programs for funding K-12 education, including adequate education grants, fiscal capacity disparity aid, and catastrophic aid, was preserved in the amendment. The majority of the committee decided that the work of the study committee should precede any action to modify the formula or extend the collar/transition component beyond July 2011.
The full House vote on the committee recommendation is scheduled for next Wednesday, May 5.
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State Budget Update
The House Finance Committee continues to deliberate/review proposed FY 2011 budget reductions in SB 450. Cuts in state aid to local school districts total almost $10 million, with another $9.4 million in reduced state retirement contributions on behalf of school and municipal employees. Yesterday, the committee again reviewed specific cuts to education. Of the $9.923 million reduction that represents a 16% overall cut to the Department, approximately $8.8 million, or 14%, is a downshift to local taxpayers. Further review/deliberation of the most significant cuts (Cat aid would be cut $7.89 million, reducing next year's reimbursement to approximately 67% of entitlements; Tuit & Transp cut by $607,993, reducing aid to 79% of entitlements; Dropout Prev by $128,065, reducing funds available to support initiatives in this area; and Local Ed Improvement by $39,903, reducing support for schools in need of improvement) will continue with work sessions next Monday and Tuesday. A committee vote on a recommendation is scheduled for Thursday.
Several amendments have been proposed, including:
-Retirement System changes (by Rep. Kurk), establishing new requirements for members who begin service on or after July 1, 2010. New requirements include an additional 5 years of age and service for benefit eligibility; limiting earnable compensation to base pay plus certain mandatory pay; and providing that the maximum benefit amount shall not exceed 75% of average final compensation.
-Creating a new Gaming Oversight Authority and Video Lottery (by Rep. Vaillancourt).
-Modifications to the enforcement of pooled risk management programs established for the benefit of political subdivisions (by Rep. Eaton). The proposal places limits on reserves and gives the Secretary of State authority to conduct investigations, seek injunctive relief, and order the return of surplus funds.
Further amendments are also expected to propose: 1) creating a temporary increase in the employee retirement rate to help offset the reduction in state share; and 2) allowance for a special meeting of a school district, based upon the majority vote of the school board, only for the purpose of addressing changes in Cat Aid funding that could affect the district during FY 2011.
All proposed amendments receive committee consideration and are subject to majority votes. The 'final' committee vote on a recommendation is scheduled for next Thursday.

ACTION ITEM
Please contact your local senator and representatives to make sure they understand the impact of the timing of these cuts. The FY 2011 proposed cuts impact next year' budgets, most of which were adopted at March annual meetings and based on higher levels of anticipated state revenue. The FY 2011 cut of $7.9 million in Catastrophic Aid is of special concern since Cat Aid is currently only reimbursing approximately 85% of the eligible expenditures that were made last year. The proposed FY 2011 reduction would reimburse only an estimated 67% of current year entitlements. These current year expenses cannot be modified or reduced: they are based on required programs that meet the educational needs of these students. Since districts were not aware of these lower estimates of aid during the budget process, such cuts will have far-reaching impact on other areas of local budgets as well as increasing local property tax rates next fall.
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House and Senate Hearings Next Week
The Senate Education Committee will be meeting in Executive Session on Tuesday morning to vote on recommendations for two bills remaining in committee:
HB 1411, the labor bill opposed by NHSBA that requires written notice to educational support personnel and non-certified school district employees; and
HB 1523, the bill revising the statute on pupil safety and violence prevention to include harassment, intimidation, bullying, and cyberbullying. Efforts continue with friendly amendments to this bill, supported by NHSBA, addressing the training requirements.

The House Finance Committee will hold work sessions on SB 450, relative to proposed budget cuts, on Monday morning and Tuesday afternoon. Executive session to vote on a recommendation is scheduled for Thursday morning.

The House Education Committee will be meeting in Executive Session on Tuesday morning to vote on recommendations for several bills remaining in committee, including:
SB 520, relative to school district liability for special education costs. This bill addresses continuing concerns over the financial liability for special education services when a child has been "parentally placed" in a school outside the child's district of residence. The bill seeks to clarify that a child's district of residence remains the legally liable and financially responsible district and allows for a contractual agreement between the two districts.
SB 373, authorizing the state board of education to approve alternative schools in a school district.
SCR 2, encouraging New Hampshire schools to adopt environmentally sound practices.