New Hampshire School Boards Association

Legislative Bulletin

January 6, 2012 

 Welcome Back to Another Legislative Session with Education Updates from NHSBA    

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The 2012 Legislative Session is now underway.

Both the NH House and Senate have convened to resume work and take up the 2012 session. Committee work is underway and hearings on bills have also begun, with several hearings on proposed legislation scheduled for next week. Some of the major educational items to be addressed this year include:  

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Constitutional Amendment on Education Funding

Several 'versions' of a constitutional amendment to address the issue of education funding, and the state's corresponding responsibility, are under consideration. Recall that both the House and Senate adopted versions of a CACR: the Senate adopted CACR 14, but the House was unable to concur with the wording, and the bill was tabled. Governor Lynch announced his recommendation this past fall for a constitutional amendment, and when the House met in November, it removed CACR 14 from the table, amended it to reflect Governor Lynch's proposal, but it failed to pass and was eventually killed on an Inexpedient to Legislate vote. The House adopted CACR 12, but the Senate retained the bill and it currently sits in the Senate Internal Affairs Committee. Both proposals provide for the general court to define standards for education and have discretion in determining the method, and amount, of state funding, specifically allowing discretion to mitigate local disparities. Their main difference was in the wording and whether or not the state has a "responsibility" in education funding.

CACR 7 is another proposal in the House that has been retained by the House Special Committee on Education Funding Reform. This bill provides for the legislature to distribute funds in the manner that it determines will best promote an equal opportunity for an adequate education. CACR 8 also addresses education funding, stating that the local districts make "adequate provision at their own expense for their schools". CACR 8 was considered yesterday by the House, failed to receive the necessary 3/5 majority vote (failed 219-127), and was then recommitted to the House Education Committee.

It is highly likely that some agreed upon language for a constitutional amendment will be adopted this year and then appear on the November 2012 ballot. Passage of such a provision will likely mean cuts in state aid, with significantly less money budgeted for Adequacy. The impact will be significant local property tax increases to sustain school budgets, or significant cuts to local budgets with corresponding losses in educational opportunities for our youth.  

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Authorizing the Retention of Funds by a School District - NHSBA Priority Bill

Senator Forsythe and several co-sponsors have introduced legislation (SB 373) to enable school districts to carry over an unassigned fund balance. The bill proposes that, "a school district at an annual meeting may adopt an article authorizing, indefinitely until specific rescission, the school district to retain any year-end and unassigned general fund balance up to 2.5 percent of that fiscal year's net assessment under RSA 198:5, for the purpose of having funds on hand to use as a revenue source for emergency expenditures and overexpenditures under RSA 32:11, or to be used as a revenue source to reduce the tax rate." This bill reflects a specific resolution adopted by the NHSBA Delegate Assembly last January. It is scheduled for a public hearing before the Senate Education Committee at 1:00 pm on Tuesday, January 31, in room 103 of the Legislative Office Building (LOB).

 ACTION ITEM

Please contact your senator as well as members of the Senate Education Committee (Chairman, Senator Nancy Stiles; Vice Chair, Senator James Forsythe; also Senators Sharon Carson, Molly Kelly, and Russell Prescott), expressing your support for this bill. Such a provision, once approved by the local legislative body, will allow a revenue source for emergency expenditures, as well as the ability to smooth out variations in local property taxes due to reductions in state and/or federal revenue.

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Education Tax Credits

SB 372, prime sponsor Senator James Forsythe, establishes a tax credit against the state business profits tax for business organizations that contribute to scholarship organizations that award scholarships to be used by students to defray the educational expenses of attending an independent school. "Independent school" means a school located in New Hampshire, other than a public school, at which the compulsory school attendance requirements may be met and that meets state and federal antidiscrimination laws, including home schools. "Education expenses" means the tuition cost of an eligible student to attend an independent school, or, in the case of a home schooled student, the academic expenses not to exceed $1,500, incurred in a child's home schooling, including instruction-related materials and equipment, online learning services, and tutoring services. For each contribution made to a scholarship organization, a business organization may claim a credit equal to 75 percent of the contribution against their business profits tax owed. Business Profits tax revenue currently supports both the state general fund and education trust fund.

This bill reflects a position specifically opposed by a NHSBA Resolution adopted by the NHSBA Delegate Assembly. SB 372 is scheduled for a public hearing before the Senate Education Committee on Tuesday, January 24 at 1:00 in room 103 of the LOB.

ACTION ITEM

Please contact your senator  as well as members of the Senate Education Committee (Chairman, Senator Nancy Stiles; Vice Chair, Senator James Forsythe; also Senators Sharon Carson, Molly Kelly, and Russell Prescott), expressing your opposition to this bill. NHSBA adopted a specific resolution in opposition to any effort to subsidize private, religious or home schools with public tax dollars. Specifically, NHSBA opposes the creation of vouchers, tax credits and tax subsidies that in any form are targeted to the tuition or expenses for non-public K-12 schools. Rather than diverting scarce tax dollars away from our public school classrooms, NHSBA urges the legislature and congress to support improvements in our public schools and meet current funding obligations and promises.  

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New Required Policy

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, has now become law. The bill passed both the House and Senate last spring, but was vetoed by Governor Lynch. This week, both the House and Senate met the 2/3 majority vote needed to override the veto.

The new law requires 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. Such policy shall include a provision requiring the parent or legal guardian to notify the school principal or designee in writing of the specific material to which they object and a provision requiring an alternative agreed upon by the school district and the parent, at the parent's expense, sufficient to enable the child to meet state requirements for education in the particular subject area.

Note that school districts must agree to the alternative, thereby retaining authority over whether the alternative is sufficient to meet state education requirements. NHSBA has drafted a model policy that will be distributed to members in the near future.

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Adequate Education

HB 1473, relative to the calculation and distribution of adequate education grants, was introduced to the Special Committee on Education Funding Reform by the sponsor, Rep. David Hess.

The proposal essentially is the same as the House position from last year, HB 337. The bill: 1) level funds Adequacy Grants at current FY 2012 funding levels with a hold harmless provision, but allows for possible future increases in aid based on changes in student population, 2) provides the Free/Reduced Meal targeted aid provision at a flat $1,770 grant (versus current $1,725) per eligible student IF attending a school with at least 12% of the student population eligible for Free/Reduced meals, 3) modifies several provisions of how the base cost of adequacy is determined biennially, such as using salaries for teachers, staff and administrators with one year of experience instead of three, 4) provides $690 (versus current $675) for each pupil who is an English language learner, 5) provides $1,904 (versus current $1,856) for special education pupils, 6) provides $300 for each 3rd grade student testing at proficient or above (versus current $675 for each 3rd grade student who has not tested proficient, and 7) restores fiscal capacity disparity aid based on a municipality's equalized valuation per pupil and median family income. Due to the changes in base aid calculations, the base cost for adequacy would be less than the current $3,450.