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Governor's Budget Address
The House and Senate met in Joint Convention yesterday for Governor Hassan's Budget Address. The Governor's Budget proposal fully funds the existing adequacy formula at $936 million for each of the next two years, or approximately $575 million in actual annual grants. Building aid is funded at $45.2 million in FY 2014 and $50 million in FY 2015. Catastrophic Special Education Aid is level funded at $21.5 million next year, and increases by $2 million to $23.5 million in 2015. Tuition and Transportation Aid is also level funded at $6.9 million next year but increases to $7.9 million in FY 2015. These two aids receive a total $3 million increase for the second year of the biennium. In addition, the Governor's Capital Budget funds Career Tech Ed Centers in Whitefield at $11.5 million and Salem at $7.5 million, with another $2 million for kindergarten construction. Charter school funding increases significantly (over $18 million) to allow for growth in the charter school population. Finally, additional funds are also allocated to restore the CHINS program. Sources of revenue supporting these budget proposals include $40 million in each year from gaming license fees, and an additional $30 million annually by increasing the tobacco tax.
The House Finance Committee, chaired by Rep. Mary Jane Wallner (d, Concord), now begins formal budget discussions. Detailed deliberations of funding for the Dept. of Education will take place within Division II of Finance, chaired by Rep. Dan Eaton (d, Stoddard).
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HB 370 - Committee Supports Repeal of Education Tax Credit Program
NHSBA provided testimony in support of HB 370, repealing the education tax credit program. This week, the House Ways & Means Committee voted 10-7, recommending Ought to Pass on the bill and repeal of the program. This recommendation will be considered by the full House when it meets next Wednesday.
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SB 40 - Current Year FY 2013 Adequate Education Funding
SB 40 addresses a technical calculation error by the Dept. of Education for current year Adequacy Funding. Many communities were given notice of approximately $3.5 million more than the hold harmless provision technically provided for FY 2013. SB 40 seeks to restore the original level of funding for which school districts received notice and were anticipating as revenue this year. NHSBA offered testimony in support of prompt action to correct this current year funding problem, impacting approximately 80 communities. No further appropriation is needed by the legislature since the necessary funds were originally included in the Department's FY 2013 appropriation. The bill was recommended Ought to Pass by the House Finance Committee: this recommendation will be considered by the full House when it meets next Wednesday.
ACTION ITEM
Please contact your local House Representative(s) and express your support for this bill. Relying on the original information provided by the Dept. of Education, budgets were adopted and tax rates set. Without this $3.5 million in revenue, many districts will have deficits in their current year funding.
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Retirement Legislation
HB 341 requires that the administrative and professional cost of the fiscal analysis of proposed legislation done by the retirement system not be paid from retirement system assets or charged as an expense of administration. NHSBA's concern is that while actuary analysis of proposed legislation has a cost, the information provided is invaluable when considering potential costs of proposed legislation. Though the bill decreases NHRS expenditures, it does not indicate how actuarial and professional assessments of proposed legislation related to NHRS would be paid.
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Limitations on Use of Vocational Tuition & Transportation State Aid
HB 563
requires that all payments for vocational education tuition and transportation costs made to a school district be used exclusively for the vocational education program. NHSBA offered testimony that the bill is unnecessary, since this aid is a reimbursement program for expenditures already incurred in the prior year. It ignores the budgeting process for these students and that current costs are eligible for partial reimbursement, and only 70% of the aid is currently distributed. The state aid in the following year is a source of revenue that helps support the entire education budget.
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Creating and Dividing School Districts
HB 479 allows for the creation of new school districts and the division of existing school districts into new districts. Upon the written petition of 10 or more voters, selectmen shall divide the district as requested and establish a new district or districts within 30 days of the petition. Any resident may also remove their taxable property for school tax purposes. NHSBA provided testimony clarifying: options for individuals that currently exist, technical problems since school districts and towns are separate and independent political subdivisions of the state, and that school taxes provide support for a common good, public schools available to all residents at no cost.
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Bill Status Update
OTP, Ought to Pass - OTP/A Ought to Pass as Amended - ITL Inexpedient to Legislate
HB 178 requires binding arbitration in labor relations disputes: remains under review in House Labor subcommittee.
HB 187 prohibits the amendment/modification of any CBA cost item agreed to by the public employer and the employee organization: OTP/A passed the House.
HB 213 requires school boards to establish a policy enabling a high school student who takes a college course for credit to have that credit computed as part of the student's high school grade point average: ITL by the House.
HB 214 requires the school board of each school district to establish a policy regarding the eligibility of certain high school students to participate in extracurricular activities: ITL by the House.
HB 269 authorizes a city or town to conduct a special meeting necessitated by changes in adequacy funding: remains under review in House Education Committee.
HB 303 establishes a committee to study the teaching of a second language beginning in kindergarten: House consideration delayed until February 20.
HB 323 establishes the Franklin Partin right-to-work act: ITL by the House.
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Legislation Considered Next Tuesday, February 19, 2013
HOUSE EDUCATION, Room 207, LOB
10:00 a.m. CACR 6, providing that the legislature shall have the power to authorize political subdivisions to establish schools at their own expense and the legislature shall have the sole authority to fund such subdivisions as the legislature determines.
10:45 a.m. CACR 7, 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 have full discretion to determine the amount of state funding for education.
11:15 a.m. HB 553, establishing New Hampshire anti-bullying day, observed with appropriate ceremonies, activities, and educational events.
HOUSE LABOR, Room 307, LOB
2:15 p.m. HB 591, prohibiting abusive work environments for public employees.
SENATE FINANCE, Room 103, SH
1:45 p.m. SB 158, defining a habitually truant child as a child in need of services.
Legislation Considered Next Thursday, February 21, 2013
HOUSE EDUCATION, Room 303, LOB
11:00 a.m. HB 629, relative to designation as a high performance school for the purpose of qualifying for additional school building aid grants.
11:30 a.m. HB 631, requiring school boards to establish a policy allowing parents to send their children to an out-of-district school.
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