FOR IMMEDIATE RELEASE                             Thursday, March 20, 2008

 Contact: Senator Iris Estabrook

(603) 271-3042

SENATE APPROVES EDUCATION FUNDING PLAN 

CONCORD – The Senate voted 14-10 today for a new school funding plan that is expected to meet the requirements set out by the New Hampshire Supreme Court for funding an adequate education. Senate Bill 539 now heads to the House.

“This bill is the result of a thorough and data-driven process to identify the costs included under our new definition of an adequate education. We have a well thought-out plan that meets the requirements set out by our Supreme Court and is sound educational policy. In addition we recognize that the change to a new and constitutional funding system hurt certain communities, and we did what we could to help those communities,” said Senator Iris Estabrook (D-Durham).

Senate Bill 539 allocates aid per pupil based on “universal” costs required in all schools and “differentiated” costs for schools with higher concentrations of economically disadvantaged pupils.  Schools also get allocations for the number of children receiving special education services or English language instruction. 

The legislation then adds a component called “fiscal capacity disparity aid” to help towns that struggle to raise enough money on a smaller tax base to meet the needs of their students -- a factor that could not be considered as part of costing an adequate education.

Earlier this week, the Senate Finance Committee added a third component to help towns hardest hit by the shift to a new funding system. It calls for $9 million in transitional aid in 2010 and $4.5 million in 2011 to go to about 20 communities that would lose more than 15 percent of their state grant under the new funding plan.

Those communities all fall on the low end in terms of property wealth and below certain levels in terms of median family income. The transition aid would cut in half the expected loss in state grants for 16 towns and by 25 percent for four towns in 2010. That assistance would be reduced by 50 percent in 2011 before being phased out.

The total cost of providing an adequate education for every public school pupil under this plan stands at roughly $914 million. Another $48 million was added in fiscal capacity disparity aid. The transition aid adds another $9 million in 2010 and $4.5 million in 2011.

The Senate today also passed a package of financial aid to the 11 communities adding public kindergarten in 2008 or 2009. The funding will cover all the costs for temporary classroom and provide two options for paying for permanent construction.