nhsba

New Hampshire School Boards Association

Legislative Bulletin

June 3, 2011 

  

A Brief Summary of Education Issues at the State House  

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Senate Adopts State Budget  

The Senate adopted its version of a state budget on Wednesday. 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 $10.3 billion.

Briefly, the proposal level funds the Adequate Education State Aid formula for the next two years (FY 2012 and 2013 at exact same aid as FY 2011), the moratorium on new construction eligible for Building Aid is extended for two years, and funding for those existing obligations is fully funded for both 2012 and 2013. Catastrophic Special Education Aid remains underfunded and will be pro-rated. The Senate increased Tuit & Transp aid by $1 million/year and restored $600,000/year in Dropout Prevention funds, meeting the federal maintenance of effort requirement for Perkins funds that support the regional Tech Centers.  

 

 Click here for a table  highlighting some of these details:   

 

Another major budget concern for school districts is the state share of retirement contributions.  The House first considered that reform measures to the retirement system, with benefit changes and increased employee contributions, would produce a net savings equivalent to the approximately $60 million required for a 25% state share of contributions next year.  The House budgeted $4.6 million in FY 2012 and $2.7 million in FY 2013 to meet any 'shortfall'.  The Senate has estimated retirement savings to be enough so that school and town contribution rates would be no higher that what is currently paid, and eliminated any state share.  For teachers, the current rate is 10.70%, and school districts are currently paying 75% of that amount, or 8.02%.  This July, the teacher rate increases to 13.95%, a 30% increase on the total rate.  IF the state paid 25%, the school district share would be 10.46%.  Without any retirement reform, districts would pay the entire amount, or a 75% increase over what is currently paid.  With retirement reform, and a recertification of rates, contribution rates paid by districts would be moderated, but as yet, without any agreed upon reform, or recertification of rates in the very near future, come July 1 school districts and towns could be facing significant impacts on their budgets for what is being paid to cover retirement benefits for employees.  The Senate does recognize this issue, and adopted a "contingency provision" in HB 2.  The provision states that if retirement reform does not produce savings in FY 2012 matching a 25% state share, such amount shall be distributed to political subdivisions in FY 2013.

    

Additional language contained in the trailer bill, HB 2, also includes:

-Extends the moratorium on school building aid grants through June 30, 2013.

-Amends the Adequate Education statutes, incorporating provisions adopted by the Senate in SB 183.

-Amends the statutes on retirement, incorporating reform provisions adopted by the Senate in SB 3, including increases in employee contribution rates. A contingency clause notes that if SB 3 becomes law, this section of the bill shall not take effect.

-Restores some CHINS funding for approximately 50 of the most severe cases of the over 400 youths served. These are children under age 18 with a diagnosis of severe emotional, cognitive, or other mental health issues who engage in aggressive behavior.

-$888,395 is contained in HB 1 for FY 2012 to fund the 3rd year of temporary kindergarten facilities. HB 2 authorizes $3.7 million for the biennium, by bonding, to fund permanent construction, only if the project receives legislative body approval by June 30, 2013.

-Eliminates the House provision authorizing school districts to hold a special meeting in response to changes in state education funding. Meetings were to be called by the governing body (school board) and no petitioned warrant articles were allowed. However, in separate action the Senate adopted HB 650, giving school districts the ability to call such a special meeting by July 1, 2012.

-Eliminates the House requirement for 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.

-Eliminates the House creation of a committee charged with studying the relationship between the Dept. of Education and school districts to identify potential cost-saving changes to that relationship.

-Eliminates the House provision that placed a funding limitation (cap) on the Virtual Learning Academy Charter School (VLACS).

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Education Adequacy

Last week, the Senate amended the House version of Adequacy, HB 337, to reflect the Senate adopted version of SB 183.  The House non-concurred with that change, and requested a committee of conference.  On Wednesday, the House adopted an amended version of SB 183.  The amendment replaces the senate language with most provisions contained in HB 337 as passed by the House.  It also provides additional funds for each third grade pupil who has tested at the proficient level or above in the reading component of the state assessment, with a comparable reduction of funds for each such pupil who does not test at the proficient level in reading.  Both House and Senate versions continue to contain a hold harmless provision ensuring that municipalities receive the same level of funding for fiscal years 2012 and 2013 that they received in FY 2011.


Constitutional Amendments

Two constitutional amendments relative to the Claremont/Londonderry court decisions are under consideration this year.  The House has adopted CACR 12, and the Senate adopted CACR 14.  Both proposals give the legislature the authority to define education standards and accountability, mitigate local disparities in educational opportunity, and have full discretion to determine the amount of state funding for education.  Disagreement exists over the word "responsibility", specifically that the legislature has a responsibility with respect to these issues.  On Wednesday, the House tabled CACR 14, and the Senate re-referred CACR 12 back to the Senate Internal Affairs committee.  Deliberations between the House, Senate, and Governor's office are expected to continue.

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Pension Reform Update  

SB 3

: The Committee of Conference on SB 3 continues to meet with further work scheduled for next week. Significant lack of agreement still persists on part-time employment and return to work issues, as well as provision for recertification of employer rates for 2012 and 2013. Tentative agreement has been reached on several areas that primarily impact non-vested members. Non-vested members and new hires have changes in their years-of-service requirement, with Group I teachers and employees not being able to collect a pension until age 65. Earnable compensation will no longer include unused pay of any kind (vacation or sick pay) nor any longevity or severance pay. Average Final Compensation (AFC) will be based on the average of the 5 highest years. Employee rates will increase starting in July: from 5% to 7% for Group I employees and teachers. Tentative agreement also exists for elimination of the Special Account and transferring approximately $200 million back into the pension fund. Also, the composition of the NHRS Board of Trustees would change in August to a 13-member board: 4 employee representatives (Group I employees, Group I teachers, Group II police, Group II fire), 4 employer representatives (school, town, county and state), 4 non-member 'experts', and the state treasurer. Quarterly reports, describing Board actions, changes to actuarial assumptions, and returns on investments are to be provided to the legislature.

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"Other" Legislation  

The House also adopted the following bills:

SB 2 gives local governments the ability to adopt spending caps, both traditional and official ballot (aka SB 2) districts as well as city and town charter forms of government. The enabling legislation allows districts and towns to adopt the provisions of a new section added to the municipal budget law (RSA 32). Local adoption of a tax cap may be either a fixed dollar amount or a fixed percentage applied to the taxes raised in the prior fiscal year. While the cap would apply to the budget submitted by the governing body (school board), the legislative body (district meeting) is not similarly restricted and may increase, or decrease, the amount of any appropriation or the total amount of all appropriations. The bill must now go back to the Senate to concur, nonconcur, or request a committee of conference.

SB 172 establishes performance-based school accountability criteria and further requires legislative approval for the adoption of the common core state standards in NH. For adequacy accountability, state assessment instruments will be used to measure academic areas and pupil participation; other available data will be used to measure areas including attendance, graduation rate, and dropout rate. In addition, locally defined criteria and data may be used by schools to demonstrate that the school provides the opportunity for an adequate education. Included in the bill is a requirement for legislative approval of the national "common core state standards".

SB 82 gives the state board of education permanent authority to approve chartered public schools. The bill also requires the state to pay tuition at adequacy funding levels for each pupil who resides in the state and attends a chartered public school authorized by a school district other than the pupil's resident school district.

 

The Senate also took the following action:

HB 130, relative to accountability for the opportunity for an adequate education, was adopted. This bill allows a school to demonstrate compliance with the input-based school accountability standards by furnishing evidence that it has received full accreditation from the New England Association of Schools and Colleges (NEASC).

HB 136, establishing a commission to study youth sports concussions and other concussions received while at school, was adopted.

HB 429, permitting a child 16 years of age or older to withdraw from school, was killed on an 18-6 vote (ITL).

HB 462 was adopted relative to retirement assessments on employers for "spiking" (excess benefits). The effective date is delayed one year to July 1, 2012, NHRS must implement an interactive estimator for employers to evaluate probable costs, and assessments on employers would be phased in over a four-year period.

HB 542, requiring school districts to adopt a policy allowing an exception to specific course material based on a parent's or legal guardian's determination that the material is objectionable, was adopted. The parent and school district must mutually agree upon any alternative, with any associated cost paid by the parent.

HB 590, establishing a committee to review state participation in federal grant-in-aid programs, was adopted. The committee must assess the value to the state of each federal program on its merits, without reference to the availability of federal aid, and the feasibility of retaining each program in the absence of federal aid. A report is due by November 2011.

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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