NH LEGISLATIVE NEWS
Budget (HB 1, HB 2, HB 25) - Adequate education funding was level funded which held the District harmless for a loss in adequacy funding. School building aid, for districts like Epping already receiving it, was fully funded. A moratorium was placed on new construction projects through June 2013. Catastrophic aid for severely disabled chilren was significantly reduced this year and next school year. Tuition and transportation aid for career and technical schools like Seacoast School of Technology was set significantly below projected need. Dropout prevention funding for compulsory attendance to age 18 was cut by more than 50%. Statewide special education support was cut by 60%. Local education improvement funds were eliminated.
The Budget also eliminated the state's share for teacher and other employee retirement. Rates dropped from 35% to 30% in 2009-2010, 25% in 2010-2011, and 0% this school year. The legislature adopted changes to the pension system resulting in projected savings, but the total elimination of state contribution resulted in significant retirement costs being shifted to the local school districts and towns.
The Budget also signnificantly cut funding for CHINS (Children in Need of Services) eliminating CHINS as an avenue to address severe truancy issues.
Retirement (HB 2, HB 461, HB 462, HB 464) - HB 2 in addition to the elimination of state contributions also significantly changed the state pension system. Changes for the most part impact non-vested members (less than 10 years) with new and non-vested members not able to collect a full pension until 65. Vacation and sick pay payouts, longevity, or severance pay will no longer be included in earnable compensation for calculating retirement benefit. Average earnable compensation will be based on the 5 highest years rather than 3. Employee rates increased from 5 to 7% for teachers and group 1 employees. The definition of a part time employee was also changed from less than 35 hours a week to 32 hours a week or less.
The state retirement system was also required to transfer $89 million from the Group II special account to the annuity fund. Members of the retirement system can no longer purchase credit for out-of-state employment. Retirement penalties for spiking (provisions that increase a pension benefit by more than 125% of base pay) will not be charged prior to July 1, 2012. In 2013 penalty will be assessed at 25%, 50% in 2014, 75% in 2015, and 100% in 2016.
Adequate Education Funding (HB 337) - This law amends the calculation and distribution of adequate education grants and makes other stipulations on disparity aid and stabilization grants.
1. Kindergarten counts for half-day only.
2. Base cost continues at $3,450 for the next two school years.
3. Charter schools receive an additional $2,000 to the $3,450 base.
4. Students on free & reduced meals receive an additional $1,725.
5. Limited English Proficient students receive an additional $675.
6. Special education students receive an additional $1,856.
7. Students not qualifying for F&R, LEP, or SpEd and do not test proficient or above on state reading assessment receive an additional $675.
8. Fiscal disparity aid is eliminated. This year stablization grants held districts harmless in order not to receive less funding than 2011. Beyond this school year stabilization grants will not increase.
Demonstration of Adequacy (HB 130) - Schools may demonstrate meeting the input-based accountability standards through the receipt of full accreditation through the New England Association of Schools and Colleges (NEASC).
Evergreen (SB 1) - The automatic continuation of collective bargaining agreements if both parties cannot resolve their negotiation impasse has been repealed. Step increases will not continue without an approved agreement unless evergreen is included in the collective bargaining agreement.
Tenure & RIF & Evaluation (SB 196) - The time required to receive tenure has been increased from 3 to 5 years. If a teacher has received tenure in another school district tenure in the new district has been increased from 2 to 3 years. Tenure has also been defined by previous language as a professional employee whose position requires certification as a professional engaged in teaching. This definition also includes principals, assistant principals, librarians, and guidance counselors. Reduction in force can no longer be based soley on seniority effective July 1st. SB 196 also requires school boards to adopt a policy on teacher performance evaluation.
Ballot Voting (HB 77) - Official ballot law is amended so that no amendment to the original article eliminates the subject of the article.
School Calendar (HB 112) - School districts may adopt the hours-based calendar without the approval of the Commissioner of Education.
Administrative Rules (HB 211) - This law allows the legislature through their policy committees to review and comment on proposed administrative rules by state departments.
School Board Responsibility (HB 216) - This law clarifies school board responsibility to establish the structure, accountability, advocacy, and delivery of instruction in each school. School boards are also required to have instructional policies that establish instructional goals.
Tax Cap (SB 2) - Towns and school districts may adopt a tax cap to limit annual increases raised by taxes.
Tally Votes (SB 16) - Tally votes of a town budget committee may be placed on the ballot next to the ballot question.
Residency Disputes (SB 37) - Residency disputes regarding minor children may be submitted to the Commissioner of Education for final determination.
Charter Schools (HB 505, SB 82) - Charter schools are authorized to receive school building aid for leased space. The 10-year pilot program has been repealed to a permanent program for state board approval of charter schools.
Legislative Study Committees (HB 2, HB 168, HB 580, HB 590, SB 67) - A committee has been established to study the relationship between the Department of Education and local school districts. This committee will also review how career and technical program tuition is calculated. It will focus on realizing savings at the state and/or local level. Another committee is to study juvenille delinquency and child in need of services. Reports for both committees are due November 1st. HB 580 has established a committee to study collective bargaining with its report due December 1st. Another committee will study the state's participation in federal grant programs. The committee will study the federal grant merits and if merited and feasible without federal aid the committee will recommend how to transition using state, local, and/or private funding. SB 67 has established a committee to study education tax credits which provides tax credits to businesses that contribute funds to support education of students at nonpublic schools and authorizes a tax-exempt scholarship program. Reports for both of these committess are due November 1st.
The above information has been summarized from the 2011 Legislative Summary provided by the NH School Boards Association.
Retirement Changes Impacting School Budget - Back in April 2011 the District was notified that the NH Legislature was considering eliminating the state's contribution toward teacher and other school staff retirement. Over the past several years the state contribution of 35% had been reduced to 25% and House Bill 2 was completely eliminating the state contribution. The District estimated that this retirement change would add $280,000 in retirement costs that were not budgeted for the 2011-2012 school year.
By statute the school district cannot exceed the appropriation approved by the voters. To cover the projected $280,000 in additional retirement cost, the District placed the new full day kindergarten teacher and paraprofessional, grade 4 teacher, and part-time technology facilitator on hold. The math specialist position was reduced to 60%, a nursing assistant position to 50%, and Director of Professional Learning to 60%.
In July the District paid retirement contribution rates of 13.95% for teachers and 11.09% for other employees as required. The state contribution was eliminated. However, House Bill 2 did include an appropriation of $3.5 million to help defray the cost of the state's contribution. In August the District was notified that the retirement rates had changed to 11.30% for teachers and 8.80% for other employees. The rate reductions did not completely eliminate the estimated additional cost, but resulted in $108,000 additional cost or $172,000 less than estimated. As a result some of the funds placed on hold could be used for their budgeted purpose.
The administration recommended that the full day kindergarten staff, grade 4 teacher, and elementary technology facilitator positions be reinstated. There was much discussion about the timing as school was scheduled to open in a few weeks. The full day kindergarten class was designated the priority and staff was approved due to the kindergarten class sizes. The technology facilitator position was also approved due to technology needs in the elementary school.
The one-time state contribution toward the District's additional retirement costs was found to be negligible. At the October 6 School Board meeting the elementary technology position was increased to full time based on the school's need and the restructuring of the position to a support position.
State statutes (RSAs) and legislative bills can be referenced by clicking here.