nhsba

New Hampshire School Boards Association

Legislative Bulletin

June 19, 2012 

  

 

A Brief Update on Priority Education Bills at the State House

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Governor Vetoes Education Tax Credit Bill

Yesterday Governor Lynch vetoed SB 372, the education tax credit bill that attempted to create a voucher system for New Hampshire. In his veto message, the Governor noted that the proposed legislation, "shifts limited state funds away from public school districts, it will downshift the cost of reduced adequacy payments to local communities and property tax payers, it allows private organizations to determine the use of public education funds, and does not fully target scholarship funds to students most in need of help with tuition and other educational expenses."

NHSBA applauds the Governor's action. Diverting money from the state and local districts for private school purposes simply downshifts further costs onto local property taxpayers. Local districts would see little or no reduction in their expenses and fixed costs when small numbers of students leave the public school, yet would still be required to forfeit money in lost adequacy funds. Rather than diverting scarce tax dollars for non-public purposes, the legislature should support improvements in our public schools and fulfill current funding obligations and promises that have been neglected.

 

What's next? The House and Senate are both scheduled to meet in session on Wednesday, June 27, specifically to consider vetoes. By state constitution, gubernatorial veto messages are returned for consideration to both the House and Senate, where two-thirds of each body must approve the bill for it to become law.

 

ACTION ITEM

Please contact your legislators and share your opposition to this bill and support of the Governor's veto. Tax credits result in less revenue for the state despite claims of a lack of resources to meet current obligations. The bill "recaptures" state adequacy aid to locals, thus increasing the local property tax and relying on local funds to promote a state policy initiative. The legislature should not be diverting money from the state and local districts for private school purposes. Local districts will see little or no reduction in their expenses and fixed costs, yet will still be required to forfeit money in lost adequacy funds. The reduction in state revenues will only make it harder for the state to pay the bills it owes, which are currently underfunded. Rather than diverting scarce tax dollars away from our public school classrooms, and arguably for unconstitutional purposes by paying tuition at religious schools, NHSBA urges the legislature to support improvements in our public schools and meet current funding obligations.

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Special Education and Department of Education Rules

Governor Lynch signed into law HB 1360, requiring the state board of education and the commissioner of the department of education to submit reports detailing any proposed or adopted special education rules that exceed the minimum requirements of state or federal law. For each such rule, the state board shall identify the nature of the rule, any state minimum requirement exceeded, any federal minimum requirement exceeded, and the reasons for exceeding any minimum requirement. NHSBA thanks Governor Lynch for his support of this priority legislation.

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Authorizing the Retention of Funds by a School District

Governor Lynch signed into law SB 373, enabling legislation that allows, with legislative body approval, school districts to retain up to 2.5% of their net assessment. School districts will now be able to retain year-end unassigned general funds in an amount not to exceed, in any fiscal year, 2.5 percent of the current fiscal year's net assessment pursuant to RSA 198:5, for the purpose of having funds on hand to use as a revenue source for emergency expenditures and over-expenditures under RSA 32:11, or to be used as a revenue source to reduce the tax rate. Initial authorization is required by a vote of the legislative body, and such authorization continues until specific rescission. NHSBA thanks Governor Lynch for his support of this priority legislation.

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Retirement "Spiking" Penalty Fee/Assessment REPEALED

Governor Lynch will likely sign (if he hasn't already) into law HB 1483, repealing both the NHRS Special Account, and the statutory language that would implement the 'Spiking' penalty assessment. NHSBA thanks the Governor for his support of this repeal that recognizes implementation of a very flawed penalty formula would have simply downshifted additional costs onto local property taxpayers for a "problem" that was initially created by the legislature when it defined "earnable compensation". This repeal represents a significant savings for taxpayers.

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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. SB372, HB1607 or CACR8, and make sure the Session Year is 2012.

 

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