|
|
|
New Hampshire School Boards Association
Legislative Bulletin
April 1, 2011
A Brief Summary of Education Issues at the State House
A "Midterm" Review of Where We're At After Crossover
|
|
__________________________________________________________
House Adopts State Budget
Amidst protest and numerous proposed amendments that all failed, the House met its deadline and adopted the budget recommended by the House Finance Committee. HB 1 contains the "numbers", state appropriations for actual funding, and HB 2, the "Trailer Bill", contains companion language necessary for revisions that are reflected in the appropriations. Combined funding for the biennium is approximately $10.2 billion, with statewide spending almost $600 million lower next year compared to current levels. Extensive debate, and labor union protest, was over language in HB 2 that amends RSA 273-A, the state collective bargaining law. It provides that, upon expiration of a collective bargaining agreement, parties subject to the agreement shall become at-will employees whose salaries, benefits, and terms of conditions of employment shall be at the discretion of the employer. The legislative intent is to prohibit any possible locally negotiated evergreen language; such contract language would be null and void upon the expiration of the contract. Current required status quo provisions would no longer apply.
Additional language in HB 2 also includes:
-Extending the moratorium on school building aid grants through June 30, 2013.
-Amending the Adequate Education statutes, incorporating provisions contained in HB 337.
-Authorizes school districts to hold a special meeting in response to changes in state education funding. Meetings are to be called by the governing body (school board) and no petitioned warrant articles are allowed.
-Amending the statutes on retirement, incorporating reform provisions contained in HB 580. Included in these changes is an increase in employee contribution rates (Group I employees and teachers increase from 5% to 7%, Group II Police increase from 9.3% to 11.55%, and Group II Fire increase from 9.3% to 11.80%). There is also provision for local employers to choose to apply a higher, or lower, rate for their own employees. Finally, a "contingent" provision is included that stipulates if any provision of the statutory changes is found to be invalid, member rates would be set to cover in total 75% of the normal and accrued liability contribution.
-Requires the state board of education to review all administrative rules related to special education to ensure that such rules only require minimum compliance with the federal IDEA.
-Establishes a committee to study the relationship between the Dept Education and school districts to identify potential cost-saving changes to the relationship.
The proposed state aid funding levels described in last week's Bulletin were adopted without change. The House budget level funds the Adequate Education State Aid formula for the next two years (FY 2012 and 2013) at exact same aid as FY 2011. No new building aid is allowed, but funding for those existing obligations is fully funded for both 2012 and 2013. Catastrophic Special Education Aid remains underfunded and will be pro-rated, as well as Tuition & Transportation Aid. Dropout prevention and Local Ed improvement funds are totally eliminated. The following highlights some of these details:
|
Aid Program
|
Current
FY 2011
|
Dept Ed Original
FY 2012 Request
|
Proposed
FY 2012
|
Proposed
FY 2013
| |
Adequate Education
|
941,830,717
|
1,016,466,441
|
941,830,717
|
941,830,717
| |
Building Aid
|
46,260,234
|
Revised to fully fund
|
49,010,475
|
47,238,342
| |
Catastrophic Aid
|
25,537,308
|
38,154,730
|
21,537,308
|
21,537,308
| |
Tuition & Transp
|
6,947,696
|
9,819,245
|
5,900,000
|
5,900,000
| |
Statewide SpEd
|
276,058
|
300,000
|
100,000
|
100,000
| |
Dropout Prevention
|
1,621,935
|
1,750,000
|
0
|
0
| |
Local Ed Improve
|
460,097
|
500,000
|
0
|
0
|
The House budget changes how the state shares in local retirement contributions. Statewide this year, for teachers, police and fire, the state share of retirement rates is 2.68%, 4.88% and 6.17% respectively. (Based on our TOTAL rates of 10.70% for teachers, 19.51% for police, and 24.69% for fire.) That state share cost the state $46,837,853. The House proposes to meet that same level of "relief" for schools and towns, but in a very different manner. HB 2 contains an increase in employee contribution rates: 2% for teachers, 2.25% for police, and 2.5% for fire. The additional contributions of employees should help lower the overall rate that employers will be required to pay, and HB 2 requires NHRS to re-calculate employer rates for fiscal years 2012 and 2013 within a "reasonable" period of time not to exceed 30 days from the effective date of this change in law. The House is assuming that this net 'savings' will be approximately $42 million. Then, for the biennium ending June 2013, NHRS must calculate for each employer the difference between the actual FY 2011 state contribution that was paid and the decrease in the amount of the employer share resulting from increased employee contributions. If the FY 2011 state payment exceeds the decrease in employer share, the system must provide a grant equal to the difference. However, in no event shall the total state grants exceed the budgeted amounts of $4.6 million in 2012 and $2.7 million in 2013.
|
|
__________________________________________________________
Labor Law Changes
Evergreen and Status Quo
HB 2, the state budget trailer bill, contains a change to RSA 273-A, the state collective bargaining law. It provides that, upon expiration of a collective bargaining agreement, parties subject to the agreement shall become at-will employees whose salaries, benefits, and terms of conditions of employment shall be at the discretion of the employer. Current required status quo provisions would no longer apply.
Tenure and Nonrenewal
SB 196 was amended and then adopted by the Senate. This bill originally addressed technical changes to the enrollment of laws. However, the bill was used as a vehicle to make the tenure reform changes originally proposed for SB 114. In effect, SB 196 was removed from the table and then amended to reflect the changes in tenure reform proposed by Senator Forsyth (and described in last week's Bulletin). SB 196 is now the bill that increases from 3 years to 5 years the time required to be entitled to reasons and opportunity for a hearing when given notice of nonrenewal (Failure to be Renominated or Reelected) under 189:14-a. The bill also removes any standard of review for school board hearings in cases of nonrenomination due to unsatisfactory performance. However, it does require that a teacher's performance not be based solely on state or national assessment scores received by pupils in the teacher's class. SB 114 was subsequently laid on the table.
|
|
__________________________________________________________
Pension Reform
Pension reform continues to be a priority of the legislature. In addition to reform measures being incorporated into HB 2, both the Senate and House have separate bills addressing comprehensive changes.
In the Senate
SB 3, sponsored by Senator Jeb Bradley, was adopted by the Senate and includes several technical changes recommended by the Senate Finance Committee. Due to timeline concerns expressed by NHRS, various provisions were delayed until January 1, 2012. This includes the recertification of employer rates to reflect the impact of changes made, including increases in employee contributions. As a result of the later date, increases in employee rates are no longer phased in: the 2% increase will become effective January 1, 2012. The provision to recertify employer rates will mean that those new rates will likely be impacted by pending NHRS Board of Trustees action to lower the assumed rate of return. The actuary for the system has recommended lowering the assumed rate from the current 8.5% to 7.75%. Board action on this recommendation will likely occur within the next month or two, and would then be factored into the recalculated employer rates, likely determined sometime in the fall. As you recall, employer contributions of behalf of employees and teachers are currently scheduled to increase this July from 9.16% and 10.70% respectively, to 11.09% and 13.95% respectively. Any revised rates calculated next fall would reflect not only changes in employee contributions, but also the lower assumed rate of return. Other provisions of SB 3 remain intact. The bill now moves to the House for consideration.
In the House
HB 580, a somewhat more aggressive comprehensive proposal, was adopted by the House and makes various changes to the state retirement system including:
- Increasing retirement ages of group I members to 65 and group II members to 50.
- Changing the definition of earnable compensation to exclude unused sick/vacation time and making average final compensation based on 5 years instead of three.
- Changing the composition of the board of trustees: 4 member & 4 employer representatives, 4 experts & state treas.
- Eliminating the special account.
- Increasing employee contribution rates.
- Establishing a committee to study the establishment of a voluntary defined contribution plan.
- Prohibiting a member in service from concurrently receiving benefits.
- Includes language stipulating that any retirement benefits provided are not to be construed as constituting a binding contractual obligation and may be modified or discontinued by legislation.
- Includes language amending collective bargaining to provide that after the end of a collective bargaining agreement, the public employer has exclusive authority over providing any continued medical, dental, life insurance, retirement or pension benefits, and any other fringe benefit.
The billnow moves to the Senate for consideration.
|
|
__________________________________________________________
"Other" Legislation
The House also adopted the following bills:
SB 16, providing clarification that the decision of a town or governing body to have votes of the governing body printed in the warrant, also applies to the printed ballot.
HB 375, providing civil and criminal immunity for good faith acts or omissions of reasonable force performed by teachers or persons otherwise entrusted with the care or supervision of a minor for special purposes or pupil.
The Senate also adopted the following Bills:
CACR 14, providing that the general court shall have the authority to define standards for public education, establish standards of accountability, mitigate local disparities in educational opportunity and fiscal capacity, and shall have full discretion to determine the amount of state funding for education. The vote was 16-8, one vote more than the required 15 for a 60% majority.
SB 2, allowing cities and towns under a charter, and towns, school districts, and other political subdivisions under the municipal budget act, to adopt an annual limit on increases to the budget. Adoption of a local spending cap requires a 60% majority of those voting on the question.
|
|
|
|
___________________________________________________________
For the complete text of any bill, go to the general court web site and enter the bill number, e.g. SB1, HB34 or CACR3 (no spaces!), and make sure the Session Year is 2011. For more information on specific legislation, please call Dean Michener, NHSBA Director of Governmental Affairs at 603-228-2061, or email: deanm@nhsba.org
|
|
|
|
|
|
Dean Michener
NHSBA Dir. of Governmental Affairs |
|
|
|
|
|
|
|
