June 26, 2015 - NHSBA's Last Regularly Scheduled Update for the Session
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Governor Vetoes Budget
Yesterday, Governor Hassan vetoed the proposed state budget adopted by both the House and Senate. On Wednesday, the Committee of Conference reports on HB1 and HB2 were adopted by the House and Senate along party lines, and then forwarded to the Governor for signature. Her veto was made on Thursday. In anticipation of the veto, both the House and Senate also adopted HJR2, a joint resolution making temporary appropriations for the expenses and encumbrances of the state. This bill authorizes state agencies to obligate additional funds for expenditures "not in excess of 6/12 of, and for the same purposes of, the appropriations for fiscal year 2015." The resolution takes effect July 1, 2015 and continues in effect until an operating budget is enacted into law, but in no event later than January 1, 2016. The Governor has indicated a desire to reach a compromise on the budget by the end of the summer, but legislative leaders have indicated a time frame extending well into the fall. The adopted resolution allows state agencies to fund programs for up to a half year at the current FY 2015 level.
Vetoed Committee of Conference Budget Details:Education funding details were not part of the difference of opinion between the Governor and legislature. Those differences are primarily tied to business tax cuts, Medicaid expansion, and a state employee pay raise. During budget deliberations, there was much agreement on funding levels for most state aid programs. A summary of the major education appropriations as contained in the committee of conference report that was adopted by both the House and Senate is provided below.
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FY 2015
Auth.
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FY 2016
Dept. Ed.
Request
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FY 2016
Comm. of
Conference
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FY 2017
Dept. Ed. Request
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FY 2017
Comm. of
Conference
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Adequacy Aid
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936,064,198
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931,015,998
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932,482,099
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Charter Tuition
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21,077,731
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26,597,062
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26,114,660
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30,207,138
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33,082,335
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Charter Tuit-New
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1,695,300
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1,968,718
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1,302,795
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1,695,300
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3,911,124
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958,837,229
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958,433,453
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969,475,558
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Building Aid
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42,800,000
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50,000,000
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42,800,000
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50,000,000
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37,000,000
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Cat Aid
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22,537,308
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30,000,000
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22,300,000
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30,000,000
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22,300,000
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Court Order Placements
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2,500,000
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2,500,000
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1,500,000
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2,500,000
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1,500,000
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Voc Tuit & Transp Aid
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7,400,000
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7,900,000
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7,400,000
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8,400,000
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7,400,000
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Dropout Prev
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600,000
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600,000
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600,000
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600,000
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600,000
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Statewide Sp Ed
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100,000
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100,000
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100,000
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100,000
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100,000
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Career Tech Org
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-
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115,000
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115,000
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115,000
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115,000
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75,937,308
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91,215,000
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74,815,000
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91,715,000
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69,015,000
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Adequacy Aid
There would be no change for next year's FY 2016 distribution of adequacy aid. Communities would continue to receive stabilization grants, if currently receiving such a grant, and the current 108% cap on any increase also remains in effect.
For FY 2017, the cap on any increase in the total adequate education grant is raised to no more than 160% over the previous fiscal year. This higher level fully funds almost all districts. If a district receives a stabilization grant, it will be reduced by 4%. In addition, there was added a specific provision for both FY 2016 and FY 2017 specifying that if there is any unexpended appropriation in the adequacy aid account, it shall be used to proportionally fund those communities impacted by the cap.
For FY 2018 and thereafter, the cap on grants is repealed and stabilization grants are reduced by 4% each year.
For a town-by-town listing showing the ESTIMATED FY 2017 adequacy aid impact of current law (108% Cap, 100% stabilization), House (No Cap, 90% Stabilization) and Senate (140% Cap, 96% Stabilization) proposals, and the Committee of Conference agreement (160% Cap, 96% Stabilization) click here.
Building Aid
The committee of conference agreement funds only the "tail" for previously approved projects. The moratorium, prohibiting the Dept. of Education from issuing building aid for new projects, is extended through June 30, 2017.
Catastrophic Aid
The comm. of conf. agreement continues to level fund appropriations for Catastrophic Aid, providing districts with funding levels at approximately 70+% of entitlements.
Charter Schools
The agreement adjusts additional grants for charter schools by $36 effective 7/1/15. Also, beginning FY 2017,except for VLACS, $1,000 is added to the additional grant for a total of $3,036, with CPI adjustments beginning 7/1/17 and every biennium thereafter. Concern over charter school pupil counts was emphasized by including a new requirement for the Department of Education to submit a report to the legislative Fiscal Committee of payments made to a chartered school. For each charter school, the report shall contain the name of the school, the amount of the payment, and the number of students currently enrolled at the school.
Health Care Plans
The agreement would only apply to state employees. Political subdivisions of the state were removed from a prohibition on providing any health insurance plan that is subject to the excise tax on high cost employer-sponsored health coverage under the Patient Protection and Affordable Care Act.
Career and Tech Ed Centers
The Committee of Conference report adopted on HB25, the capital budget, continues to reflect the state's commitment to renovating the regional centers, budgeting $3,025,000 for Dover and $4,875,000 for Somersworth. These funds for CTE centers in Dover and Somersworth shall not be spent, obligated, or encumbered until such time as an action plan has received approval from the legislature's Capital Budget Overview Committee.
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Social Media Policies and Negotiating Pupil Tuition Contracts
The conference committee report on HB142 was adopted. This impacts two important areas for school boards.
Social Media Policies: The new law states that schools shall not, "require or request a student or prospective student to disclose or to provide access to a personal social media account ..." Districts are allowed to, "request the student's parent or guardian to provide specific data from the student's social media account", and are also allowed to request, "a student voluntarily share a printed copy of a specific communication from the student's social media account that is relevant to an ongoing investigation."
Negotiating Pupil Tuition Contracts: Beginning this school year, school boards will be able to consider, discuss, strategize and negotiate student tuition contracts confidentially, in nonpublic session.
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Adequacy Aid and Home Educated Pupils Attending Pubic High School Classes
The conference committee report on SB151 was adopted. School districts may now count home educated pupils for the purpose of calculating the average daily membership in attendance for adequate education state aid. The additional grant payment for such pupils is contingent on available appropriations in the state budget. These students are currently excluded from the pupil count, despite the fact that they are attending public school and utilizing the resources of the district. Home educated pupils who enroll in an approved high school will be counted as an additional 0.15 pupil for each academic course taken in a public high school.
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Statewide Assessment Program
A scaled back conference committee report was adopted on HB323, reflecting the lack of consensus. House and Senate conferees only agreed on language stating that the Department of Education may use the College Board SAT or ACT college readiness assessment to satisfy the high school state assessment requirement. Efforts to reduce the frequency of required assessments failed, and current law remains in place for grades 3-8 and grade 11.
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