This week, the House met its deadline to take action on the budget. After lengthy debate, the House Finance Committee's recommendation was adopted. The House budget provides $10.99 billion for the FY 2014-2015 biennium, including $2.85 billion in General Funds. Revenue projections come from estimates provided by the Ways and Means Committee, and does not rely on gaming revenue. Overall, education, including higher education, comprises 26% of the appropriations. It fully funds the current adequate education formula as well as existing commitments for school building aid payments. The Catastrophic Aid appropriation is $45 million, a $2 million increase over the current biennium. Tuition and Transportation Aid is allocated close to $15 million, a $1 million increase over the current biennium. Also included is $200,000 over the biennium for grants to local school districts to fund FIRST robotics teams.

 

The House budget continues the building aid moratorium, not funding any new projects through June 30, 2015. It also places a moratorium on new charter schools, capping the funding at $18.5 million in FY 2014 and $21 million in FY 2015. Also provided is State Board of Education approval for charter school changes in enrollment, and review of geographic and programmatic needs of the state. Finally, the bill kills the Education Tax Credit program adopted last year, creating a second potential opportunity for the program's elimination (see also HB 370).

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State Aid Appropriations in the House Budget

Click here for the chart.
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HB 25-Capital Budget

HB 25 contains capital appropriations. The House capital budget includes funding for renovations at two regional Career and Technical Education centers: White Mountain Regional (Whitefield) and Salem. However, not included was $2.025 million originally recommended by the governor to cover remaining kindergarten construction costs for Salem and Pelham.

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SB 2 - Technical Correction to Local Tax Caps: House Hearing Next Week

SB 2 addresses the calculation of a local tax cap. The bill provides that for districts adopting a local tax cap under RSA 32:5-b, determination of the amount of local taxes to be assessed and raised for the next year shall not include any fund balance brought forward from the previous year. This bill represents the "permanent fix" to the problem faced earlier this year by the only school district to adopt a tax cap: the Newfound Regional School District. NHSBA worked with legislative leaders to address specific legislation that was adopted for Newfound and offered testimony at the Senate public hearing in support of the permanent fix in SB 2, which will ensure any district adopting a local tax cap will not meet with the same problem in the future. The House Municipal & County Government Committee will hold a public hearing on the bill next Tuesday, April 9, at 10:15 am in room 301 of the LOB.

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HB 370 -Repeal of the Education Tax Credit Program Remains In Senate Education

HB 370 repeals the statutes enacted last year with the passage of the Education Tax Credit Program. After passing the House in February, it still remains under review in committee following its hearing before the Senate Health, Education & Human Services Committee. NHSBA provided testimony in support of the repeal. The Education Tax Credit law diverts money from the state general and education trust funds, re-directing it to individuals to support their personal choices, violating our state's tradition of never allowing public funds to be utilized for private purposes. This is undeniable; without a tax owed to the state, there would be no 'credit' to offer.

 

ACTION ITEM

Please contact  your local senator and members of the Senate Health, Education & Human Services Committee, expressing your support for this bill. NHSBA Perennial Resolutions I:A and I:B oppose any efforts to subsidize private, religious or home schools with public tax dollars. Tax credits will only result in less revenue for the state despite the lack of resources to meet current obligations. The program "recaptures" state adequacy aid to locals, thus increasing the local property tax and relying on local funds to promote a state policy initiative. The state 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 repeal of this program and focus on supporting improvements in our public schools and meeting current funding obligations, benefitting the vast majority of our children.

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Remaining Schedule

Now that "Crossover" has passed, Senate Committees are considering House bills, and House Committees are considering Senate bills. The Senate Finance Committee is reviewing details of the House budget, and has started hearing agency presentations. June 6 is the deadline for the Senate to act on all House bills, and for the House to act on all Senate bills. June 13 is the deadline to form any Committees of Conference to reach agreement on bills where consensus has yet to be achieved, and Thursday, June 27, is the deadline to take action on Committee of Conference reports.