This bill aims to provide financial assistance to school districts in New Hampshire that are facing insolvency. It allows the commissioner of the Department of Education, with the approval of the joint legislative fiscal committee, to enter into loan agreements with these districts, defining "financial insolvency" and establishing a process for creating a recovery plan that includes a proposed loan agreement. The loans can have a maximum term of five years, with interest rates determined by the agreement. Additionally, municipalities are authorized to offer emergency financial assistance to these districts, complete with specific repayment terms and oversight requirements. The bill also increases the maximum percentage of year-end unassigned general funds that a school district can retain from 5% to 10% of the current fiscal year's net assessment. Moreover, the legislation establishes a School District Adequacy Revolving Loan Fund, which will be dedicated to providing loans to financially distressed school districts. The fund will be separate from other financial resources and will be continually appropriated. The bill includes new legal language stating that Moneys deposited in the school district adequacy revolving loan fund as established in RSA 194:63 will be incorporated into the financial framework for school districts. The bill is set to take effect 60 days after passage, although a fiscal impact statement is pending due to the need for additional information from the Department of Education.

Statutes affected:
Introduced: 6:12
HB1824 text: 6:12