nhsba

New Hampshire School Boards Association

Legislative Bulletin

April 8, 2011 

  

A Brief Summary of Education Issues at the State House  

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State Budget Update  

The House Budget, adopted in HB 1, HB2, and HB25 (appropriations, corresponding policy language, and capital budget respectively), has now begun review and deliberation in the Senate Finance Committee. This week, House leaders gave an overview of their decision-making to senators on the committee, and staff from the Legislative Budget Assistant Office presented summary details as well. State agency departments have also begun making their presentations on the impact of the proposed budget as passed by the House. At this time, the Department of Education has not yet been scheduled before the Senate Finance Committee. Senator Morse, Chair of the Senate Finance Committee, has indicated that changes in specific funding levels are likely, and that decisions on revenue estimates would be left to the Ways and Means Committee.

 

The March revenue report for General and Education Funds shows that the state took in $591.6 million last month, compared to the budgeted plan amount of $585.8 million, or 1% more than expected. Total receipts for the year, $1.6427 billion, are just 0.4% better than last year's FY '10 amount. However, they lag behind the budgeted plan of $1.6599 billion by $17.2 million, or 1%.

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Labor Law Update  

Right to Work

HB 474, known as the "Right To Work" bill, had another packed hearing in Representatives Hall. This bill prohibits collective bargaining agreements that require employees to join a labor union or pay any fee or "fair share", and also provides that no public employee labor organization shall be required to represent employees who elect not to join or to pay dues or fees to the employee organization. The bill passed the House and is now under review in the Senate Commerce Committee.

 

Tenure and Nonrenewal

SB 196 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. A public hearing in the House Education Committee has been scheduled for April 28, 1:30 pm in room 207 of the LOB.

 

Size of Bargaining Units

HB 185, requiring a public employee bargaining unit to have at least 10 members, has been recommended for amendment by the Senate Public and Municipal Affairs Committee. The proposed amendment, to be considered by the full Senate next Wednesday, in effect will maintain the current provision to allow bargaining units of 3-9 members if approved by the governing body.

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Senate Education Committee  

The Senate Education Committee held hearings and made recommendations for full Senate consideration next Wednesday on the following bills:

 

HB 369, making various changes to the procedure for school district withdrawal from a school administrative unit or authorized regional enrollment area school: ITL (Inexpedient to Legislate) on a 5-0 vote.

HB 542, amending the compulsory attendance law (RSA 193:1) to prohibit a school district from requiring that a parent send his or her child to any school or program to which the parent is conscientiously opposed: ITL on a 4-1 vote.

HB 505, authorizing chartered public schools to receive school building aid grants for leased space: OTP (Ought to Pass) on a 3-2 vote.

 

Bills remaining in Committee under review following their public hearings include:

HB 130, permitting a school to demonstrate that it is providing the opportunity for an adequate education by furnishing evidence that it has received full accreditation from the New England Association of Schools and Colleges;

HB 164, requiring legislative approval for the adoption of the common core state standards in New Hampshire.  

 

Hearings Next Tuesday, April 12:

1:00 p.m. HB 650, authorizing a school district to call a special meeting for changes in state education funding.

1:20 p.m. HB 290, defining a small school and a process for getting approval of an alternative staffing plan.

1:50 p.m. HB 528, requiring school districts to develop a facility maintenance and capital improvement program.

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Pension Reform  

SB 3, Senator Bradley's bill making comprehensive changes to the state retirement system, will have a public hearing before the HOUSE SPECIAL COMMITTEE PUBLIC EMPLOYEE PENSIONS REFORM next Wednesday, April 13, at 2:00 in Representative's Hall. This bill makes much needed reform changes comparable to other public pension systems in the country. It maintains pension and medical subsidy benefits for all current retirees; however there will be no increase in the benefit. It increases contribution rates by 2% for all employees beginning January 1, 2012: 7% for Group I and 11.3% for Group II. End of career payments will be excluded from the pension calculation for new hires and non-vested members, and Average Final Compensation will be based on the highest 5 years instead of 3. Individual pension benefits will be capped at 100% of base pay beginning 7/1/16. $89 million will be transferred from the Group II special account to the pension annuity fund since this money was intended to cover medical subsidy payments that are now included in employer rates. The composition of the Board of Trustees will become more neutral, with four employee representatives, four employer representatives, two legislators, two non-member trustees and the state treasurer.

 

ACTION ITEM

The House will now be considering this Senate position on retirement reform and it is important that Representatives know school boards strongly support these reform measures, as expressed in our adoption of a resolution at January's Delegate Assembly. Please contact members of the House Special Comm. on Pension Reform and share your support for these reform measures that will help ensure the viability and sustainability of our public retirement system.

 

Despite almost $600 million of investment profits in 2009, the retirement system has seen its total unfunded liability still increase from $2.7 billion in 2007 to nearly $4.75 billion. While state retirement systems should maintain stability with at least an 80% funding level, NH's system is struggling at 58%. The recent growth in our share of teacher contribution rates is not sustainable, and the retirement system is likely to lower the assumed rate of return on investments, which will further increase our employer rates. In 2007 we were able to make needed changes to the funding methodology. That has enabled us to look at the true financial picture of NHRS. As our liabilities continue to grow, we now need to make revisions to the benefit side of the equation and control what our commitments will be in the future. We ALL need a reliable and sustainable public pension system that serves the interests of BOTH employees and employers. The reform measures in SB 3 will help us achieve that goal. They have almost no impact on current retirees, little impact on vested members, with most changes impacting new hires and non-vested members. 

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Constitutional Amendment  

CACR 14, having passed the Senate, is now scheduled for a public hearing on Monday, April 11 at 9:30 in room 210 of the LOB before the House Special Committee on Education Funding Reform. This proposal gives the legislature "the authority, responsibility, and discretion to define reasonable standards for elementary and secondary public education, to establish reasonable standards of accountability therefor, and to mitigate local disparities in educational opportunity and fiscal capacity. Further, in the exercise thereof, the general court shall have full discretion to determine the amount of, and methods of raising and distributing, State funding for education." Similar to the House passed language in CACR 12, the proposal would allow the state to set any level, if at all, of funding for public education.

 

ACTION ITEM

Contact members of the committee and voice your opposition to this proposal. Specifically share NHSBA's resolution that opposes any effort to amend the constitution in such a way that is contrary to the current interpretation of, and court rulings in, both the Claremont and Londonderry decisions. Local implementation of education programs comes within parameters established both by law and rulemaking. The state is a partner in this venture, and adequate education funding plays an integral role in the support and delivery of education to our children.

 

Targeting aid is already legal and has been included in our recent formulas. The only need for an amendment is to provide 'Targeting' in place of the current base commitment to ALL children, thereby implying that some children in NH are not entitled to a state basic commitment of an adequate education. The proposal seeks to allow providing aid to certain communities at the expense of other, less "needy", communities. The reality is that the majority of districts in our state rely on state funding to help implement the educational programs offered within their schools. Significantly reducing the amount of aid directed to these communities will place significant strain on the local property tax, if those lost revenues are indeed replaced. If not replaced but followed by budget cuts, losses and reductions in educational programs will lead to fewer educational opportunities for our youth. 

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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: [email protected] 

Dean Michener
NHSBA Dir. of Governmental Affairs