New Hampshire HB 651: modifying the base cost and differential aid costs of an adequate education.

Bill Text

HB 651-FN - AS INTRODUCED

2025 SESSION

 25-0232

 02/06

HOUSE BILL 651-FN

AN ACT modifying the base cost and differential aid costs of an adequate education.

SPONSORS: Rep. Luneau, Merr. 9

COMMITTEE: Education Funding 

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ANALYSIS

 This bill increases the base cost and differential aid costs of an adequate education and expands the definition of the cost of an adequate education.

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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 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 25-0232

 02/06

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Five

AN ACT modifying the base cost and differential aid costs of an adequate education.

Be it Enacted by the Senate and House of Representatives in General Court convened:

 1 Cost of an Opportunity for an Adequate Education. Amend RSA 198:40-a, I-II to read as follows:

 I. For the biennium beginning July 1, [2023] 2025, the annual cost of providing the opportunity for an adequate education as defined in RSA 193-E:2-a shall be as specified in paragraph II. The department shall adjust the rates specified in this paragraph in accordance with RSA 198:40-d.

 II.(a) A cost of [$4,100] $7,356.01 per pupil in the ADMR, plus differentiated aid as follows:

 (b) An additional [$2,300] $4,126.20 for each pupil in the ADMR who is eligible for a free or reduced price meal anytime during the determination year; plus

 (c) An additional [$800] $1,435.20 for each pupil in the ADMR who is an English language learner anytime during the determination year; plus

 (d) An additional [$2,100] $3,767.40 for each pupil in the ADMR who is receiving special education services anytime during the determination year.

 2 Cost of an Adequate Education. Amend RSA 193-E:2-b, I to read as follows:

 I. The general court shall use the definition of the opportunity for an adequate education in RSA 193-E:2-a to determine the resources necessary to provide essential programs, considering educational needs. The general court shall make an initial determination of the necessary specific resource elements to be included in the opportunity for an adequate education. The necessary specific resource elements shall include costs for teachers, teacher benefits, student-teacher ratios, principals, administrative assistants, school counselors, library-media specialists, technology coordinators, custodians, nurse services, instructional materials, technology, professional development, facilities operation and maintenance, and transportation. The general court shall update the cost of an adequate education at least every 2 years. The general court shall use evidence from actual costs from all approved schools to determine the cost of an adequate education.

 3 Effective Date. This act shall take effect July 1, 2025.

 LBA

 25-0232

 Revised 1/27/25

HB 651-FN- FISCAL NOTE

AS INTRODUCED

AN ACT modifying the base cost and differential aid costs of an adequate education.

FISCAL IMPACT: 

 Estimated State Impact

FY 2025

FY 2026

FY 2027

FY 2028

 Revenue

$0

$0

$0

$0

 Revenue Fund(s)

None

 Expenditures*

$0

FY 2026

District Adequacy - Approximately $576.4M 

Charter School Grants - Approximately $28.3M

Education Freedom Accounts - Approximately $25.6M

Total - Approximately $630.6M 

FY 2027 and Beyond

Indeterminable, but similar magnitude expected

(see methodology below)

 Funding Source(s)

Education Trust Fund

 Appropriations*

$0

Statutory Open Warrant1

 Funding Source(s)

Education Trust Fund

 *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill

 Estimated Political Subdivision Impact

FY 2025

FY 2026

FY 2027

FY 2028

 Local Revenue

$0

FY 2026

Approximately $576.4M

FY 2027 and Beyond

Indeterminable, but similar magnitude expected

(see methodology below)

 Local Expenditures

$0

$0

$0

$0

METHODOLOGY:

This bill, effective for FY 2026, increases the base aid, and each differentiated aid component, in the calculation of a cost of an opportunity for an adequate education under RSA 198:40-a:

 FY 2026 

Per Pupil Aid Amount

Current Law

Proposed

Increase

 Base Adequacy

$4,265.64 

$7,356.01 

$3,090.37 

 Differentiated Aid

 Free-Reduced Price Meal Eligible (F&R)

$2,392.92 

$4,126.20

$1,733.28 

 English Language Learner (ELL)

$832.32 

$1,435.20 

$602.88

 Special Education (SPED)

$2,184.84 

$3,767.40 

$1,582.56

This bill will impact adequacy payments to school districts, charter school grants, and education freedom accounts (EFAs).

District Adequacy

Based on preliminary estimate student data and per pupil aid amounts presented above, this bill will increase