This bill proposes significant changes to the funding structure for adequate education in New Hampshire by increasing the base cost per pupil from $4,100 to $7,356.01, effective July 1, 2025. It amends RSA 198:40-a to extend the biennium for the annual cost of providing an adequate education from 2023 to 2025. Additionally, the bill expands the definition of an adequate education under RSA 193-E:2-b to include specific resource elements such as costs for teachers, administrative staff, technology, and transportation, and mandates that the general court update the cost of an adequate education at least every two years based on actual costs from approved schools.

The fiscal impact of this bill is substantial, with an estimated increase in district adequacy grants of approximately $454.5 million in FY 2026, alongside increases in charter school grants and education freedom accounts. The bill anticipates similar funding levels in subsequent years, although exact figures for FY 2027 and beyond remain indeterminable. The funding for these changes will be sourced from the Education Trust Fund, with provisions allowing the Department of Education to draw necessary funds regardless of available resources, potentially impacting the general fund if deficits occur.

Statutes affected:
Introduced: 198:40-a, 193-E:2-b