HB 675-FN-A-LOCAL - AS INTRODUCED SESSION 25-0505 02/05 HOUSE BILL 675-FN-A-LOCAL AN ACT increasing the total revenue raised under the statewide education property tax, requiring municipalities to remit excess statewide education property tax payments to the department of revenue administration, limiting the authority of school districts to make certain appropriations, and increasing base adequacy costs per pupil.

SPONSORS:

Sweeney,Ball, Rock.

25;25 Rep.

Rep.Boehm, Hills.

Osborne,38 Rock.Rep.

2Barton, COMMITTEE:Graf.

Education1 FundingJanuary ─────────────────────────────────────────────────────────────────6, ANALYSIS2026 This2026-0042h bill07/09 changesFloor theAmendment formulato forHB determining675-FN-A-LOCAL statewideAmend adequacy aid, ties education funding increases to the Consumertitle Priceof Index, requires municipalities to remit excess education tax revenue back to the state,bill establishesby areplacing taxit capwith for local school districts, and increases the totalfollowing: revenue raised under the statewide education property tax.

-3 -AN -ACT -limiting -total -central -office -administrative -expenses -by -school -districts -and -requiring -reporting -of -central -office -administrative -expenses -to -the -department -of -education. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Explanation:

Matter6 addedAmend tothe currentbill lawby appearsreplacing inall boldafter italics.the enacting clause with the following:

Matter8 removed1 fromNew currentParagraphs; law appears [in brackets and struckthrough.] Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

HBApportionment, 675-FN-A-LOCALAssessment -and ASAbatement INTRODUCED 25-0505 02/05 STATE OF NEW HAMPSHIRE In the Year of OurTaxes; Lord Two Thousand Twenty Five AN ACT increasing the total revenue raised under the statewide education property tax, requiring municipalities to remit excess statewide education property tax payments to the department of revenue administration, limiting the authority of school districts to make certain appropriations, and increasing base adequacy costs per pupil.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Education Tax.

RSA 76:3 is repealed and reenacted to read as follows:

76:3 Education Tax.

I.

For the fiscal year beginning July 1, 2025, statewide base adequacy aid paid through statewide education property tax shall be $773,000,000.

II.

Beginning July 1, 2026, the definition of statewide base adequacy aid shall be calculated by multiplying the total average daily membership in residence by the base aid amount in RSA 198:40-a, II(a) utilized in the previous fiscal year’s adequacy calculation multiplied by 68 percent.

The department of education shall provide the calculation of the amount to be raised by May 1 before the warrant is issued on December 15 pursuant to RSA 76:8, II.

III.

Beginning July 1, 2026, the commissioner of the department of revenue administration shall set the education tax rate at a level sufficient to generate revenue to satisfy the statewide base adequacy aid paid through the statewide education property tax pursuant to paragraph II, when imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F.

The education property tax rate shall be effective for the following fiscal year.

The rate shall be set to the nearest 1/2 cent necessary to generate the revenue required in this section.

2 Commissioner's Warrant.

Amend RSA 76:8, II to read as follows:

II.

The commissioner shall issue a warrant under the commissioner's hand and official seal for the amount computed in paragraph I to the selectmen or assessors of each municipality by December 15 directing them to assess such sum and pay it to the municipality for the use of the school district or districts and, if there is an excess statewide education property tax payment pursuant to RSA 198:47-a, directing them to assess the amount of the excess payment and pay it to the department of revenue administration for deposit in the education trust fund.

Such sums shall be assessed at such times as may be prescribed for other taxes assessed by such selectmen or assessors of the municipality.

3 New Paragraphs;

HBIV.(a) 675-FN-A-LOCALIn -this ASsection: INTRODUCED - Page 2 - IV.

Until“central Juneoffice 30,administrative 2027,expenses” schoolmeans districtexpenditures appropriationassociated amounts,with lessthe facilitiesgeneral acquisitionmanagement and construction,administration authorizedof ina paragraphschool IIIdistrict, andincluding reportedbut pursuantnot limited to RSAsuperintendent 198:4-a,services, shallassistant notor bedeputy moresuperintendent thanservices, thebusiness previousadministration, year’shuman appropriation,resources, lessfinance, facilitiespayroll, acquisitionpurchasing, anddistrict-level construction,information timestechnology theadministration, previouslegal 3services, yearspublic averagerelations, Consumerand Priceother Indexnon-school-based pursuantadministrative tofunctions, paragraphregardless VI.of physical location or building assignment.

(a)Such Afterterm Juneshall 30,also 2027,include thedistrict-level schoolcurriculum districtdirectors, appropriationdirectors amount,of lessinstruction, facilitiesor acquisitionsimilarly andtitled construction,positions authorizedwho inare paragraphnot IIIemployed shallunder a collective bargaining agreement or not beproviding direct classroom instruction more than the50 greaterpercent of the following:time.

(1)Such Theterm 3-yearshall averagenot percentinclude changeschool-based inadministrative ADMRstaff, usedclassroom forinstruction, theinstructional purposessupport ofservices, calculatingspecial adequate education grantsservices, pursuanttransportation, tofood RSAservices, 198:40-a applied to the previous year’s appropriation, less facilities acquisitionoperations, and construction, or (2)maintenance. The 3-year average appropriation, less facilities acquisition and construction.

(b) SchoolExcept districtsas seekingprovided appropriations,in lessparagraph facilitiesV, acquisitiontotal andcentral construction,office toadministrative assessexpenses localshall propertynot taxesexceed in6 excesspercent of paragraphthe IV,total asschool applicable,district shallappropriation doamounts, soless byfacilities aacquisition 2/3and majorityconstruction, voteauthorized of their legislative body on each vote or warrant article in excessparagraph ofIII theand appropriationreported determinedpursuant into paragraphRSA V.198:4-a.

The vote to exceed the excess shall not be a voice vote.

(c) Districts seeking emergency appropriations shall follow the provisions of RSA 197:3.

WithinFor 45school daysadministrative afterunits theserving reportedmultiple appropriationschool amountsdistricts, arecentral submittedoffice pursuantadministrative toexpenditures RSAshall 198:4-a,be theallocated commissionerto ofeach thedistrict departmentconsistent ofwith revenuethe administrationunit’s shallexisting notifycost-allocation themethodology schoolfor boardpurposes of anydetermining excesscompliance appropriations not made in accordance with RSAparagraph 76:8,IV(b). IV and delete those appropriations when computing district taxation pursuant to RSA 198:4-a, IV.

PreviousSchool 3districts yearsseeking averageappropriations, Consumerless Pricefacilities Indexacquisition shalland beconstruction, calculatedto byassess usinglocal property taxes in excess of the Alllimitation Urbanset Consumers,forth Northeastin Region,paragraph usingIV(b) theshall “servicesdo lessso medicalby carea services”2/3 specialmajority aggregatevote index,of astheir publishedlegislative bybody theon Bureaueach ofvote Laboror Statistics,warrant Unitedarticle Statesin Departmentexcess of Labor.the appropriation determined in paragraph IV(b).