This bill proposes changes to the funding of education in the state by increasing the base annual cost per pupil for providing an adequate education and establishing new forms of aid for municipalities. Specifically, the bill amends RSA 198:40-a to increase the per pupil cost from $4,100 to $4,404, effective from the biennium beginning July 1, 2025. It also introduces relief funding and fiscal capacity disparity aid, with the former providing additional funds to municipalities based on the percentage of students eligible for free or reduced-priced meals, and the latter offering aid based on a municipality's equalized valuation per pupil.

The bill outlines the conditions under which municipalities will receive the new forms of aid. Municipalities with a higher percentage of students eligible for free or reduced-priced meals or with lower equalized valuations per pupil will receive more aid. The bill also amends RSA 198:41 to include the new relief aid and fiscal capacity disparity aid in the calculation of total education grants for municipalities. The effective date for the changes to the per pupil cost is July 1, 2025, while the remainder of the act takes effect on July 1, 2024. The fiscal note attached to the bill estimates an increase in state education trust fund expenditures to local school districts by approximately $61.5 million in FY 2025, $74.3 million in FY 2026, and $67.7 million in FY 2027, with additional expenditures for public charter schools and education freedom accounts.

Statutes affected:
Introduced: 198:40-a
As Amended by the House: 198:40-a, 198:40-d, 198:41