Bill Text: NH HB525 | 2017 | Regular Session | Introduced
Bill Title: Relative to stabilization grants for education.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2017-11-15 - Committee Report: Ought to Pass with Amendment #2017-2526h for 01/03/2018 (Vote 19-0; Regular Calendar) [HB525 Detail]
Download: New_Hampshire-2017-HB525-Introduced.html
HB 525-FN - AS INTRODUCED
2017 SESSION
17-0725
04/03
HOUSE BILL 525-FN
AN ACT relative to stabilization grants for education.
SPONSORS: Rep. Horn, Merr. 2; Rep. Gauthier, Sull. 3; Rep. Testerman, Merr. 2; Rep. Chirichiello, Rock. 6; Sen. Woodburn, Dist 1
COMMITTEE: Education
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ANALYSIS
This bill removes the annual 4 percent reduction in stabilization grants made to certain municipalities and provides that the stabilization grant to a municipality in fiscal year 2018 shall be the same as in fiscal year 2017.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0725
04/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT relative to stabilization grants for education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Determination of Adequate Education Grants. Amend RSA 198:41, IV(d) to read as follows:
(d) For fiscal year 2017 and each fiscal year thereafter, the department of education shall distribute a total education grant to each municipality in an amount equal to the total education grant for the fiscal year in which the grant is calculated plus a percentage of the municipality's fiscal year 2012 stabilization grant, if any, distributed to the municipality; the percentage shall be [96] 100 percent for fiscal year [2017, and shall be reduced by 4 percent of the amount of the 2012 education grant for each fiscal year thereafter] 2018. No stabilization grant shall be distributed to any municipality for any fiscal year in which the municipality's education property tax revenue collected pursuant to RSA 76 exceeds the total cost of an adequate education or to any municipality for any fiscal year in which the municipality's ADMA is zero.
2 Effective Date. This act shall take effect 60 days after its passage.
17-0725
1/4/17
HB 525-FN- FISCAL NOTE
as introduced
AN ACT relative to stabilization grants for education.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2017 | FY 2018 | FY 2019 | FY 2020 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | $12,566,764 | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ ] General [ X ] Education [ ] Highway [ ] Other | |||
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LOCAL: |
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|
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Revenue | $0 | $12,566,764 | Indeterminable Increase | Indeterminable Increase |
Expenditures | $0 | $0 | $0 | $0 |
METHODOLOGY:
This bill removes the annual four percent reduction to the stabilization grant portion of the total education grant to municipalities. Current law, beginning in FY 2017, calls for a reduction to the stabilization grant of four percent of the original amount per year, for 25 years. The total original stabilization grants total $158,480,276 per year, for all municipalities, however municipalities that raise more statewide education property tax (SWEPT) revenue than its calculated cost of an adequate education, or have zero students, do not receive a stabilization grant for that year. It is assumed this bill would have no effect on FY 2017 payments and the stabilization grants will be 100 percent of their original amount in FY 2018 and each year thereafter. Below is a summary of the impact of this bill:
| FY 2017 |
| FY 2018 | ||
| Current Law | Current Law | Proposed | Difference | |
Stabilization Grants | $151,060,803 | $144,517,793 | $157,084,557 | $12,566,764 | |
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Total State Grant | $563,923,251 | $562,488,820 | $575,055,584 | $12,566,764 | |
Statewide Education Property Tax | $363,431,572 | $363,148,601 | $363,148,601 | $0 | |
Total Grants | $927,354,823 | $925,637,421 | $938,204,185 | $12,566,764 | |
FY 2017 based on 10/01/16 revised data and FY 2018 based on 11/15/16 preliminary data | |||||
Estimates for FY 2019 and beyond are not available.
AGENCIES CONTACTED:
Department of Education
