HB 334-FN is a legislative bill that seeks to revise the funding formula for per pupil grants for education in New Hampshire. The bill is designed to ensure compliance with the state constitution and the Claremont School District decision, addressing disparities in education funding due to varying property values. It proposes a new funding formula based on one-half of the statewide average cost per pupil, excluding expenditures such as tuition, transportation, capital outlays, and net debt service. The bill amends existing laws by updating the biennium to begin on July 1, 2023, replacing old cost per pupil figures with the new calculation method, and adjusting funding for chartered public schools and other educational programs. It includes insertions of new legal language and deletions of outdated figures and provisions to reflect the updated funding approach.

The bill also repeals RSA 198:40-d, which pertains to the consumer price index adjustment for the cost of an adequate education, with an effective date of July 1, 2023. The fiscal note indicates that the proposed changes would have a significant impact on state expenditures, estimated to be over $700 million annually from FY 2024, leading to a substantial increase in local school district revenue. The bill suggests that current revenue sources for the education trust fund would be insufficient, potentially requiring a transfer from the general fund. The Department of Education's estimates show that district adequacy, charter adequacy, and education freedom account (EFA) adequacy would all receive increased funding, with a total annual impact on state expenditures and local revenue estimated at $732,171,233.

Statutes affected:
Introduced: 198:40-a, 193-C:3, 194-B:11, 194-F:2, 198:48-b, 198:40-d