This bill proposes significant changes to the funding structure for an adequate education in New Hampshire by increasing both the base cost and the differential aid costs. Specifically, it amends RSA 198:40-a to set the annual cost of providing an adequate education at $7,356.01 per pupil, up from the previous $4,100. Additionally, it raises the differentiated aid for students eligible for free or reduced-price meals from $2,300 to $4,126.20, for English language learners from $800 to $1,435.20, and for special education services from $2,100 to $3,767.40. The bill also extends the effective date for these changes to July 1, 2025, and mandates that the general court update the cost of an adequate education at least every two years.

Furthermore, the bill expands the definition of what constitutes the cost of an adequate education by including specific resource elements such as costs for teachers, administrative staff, technology, and transportation. This new language emphasizes the need for a comprehensive approach to funding education, ensuring that all necessary resources are accounted for. The fiscal impact of these changes is substantial, with an estimated increase in adequacy grants to school districts of approximately $576.4 million in FY 2026, along with similar increases expected in charter school grants and education freedom accounts.

Statutes affected:
Introduced: 198:40-a, 193-E:2-b
HB651 text: 198:40-a, 193-E:2-b