HB 563-FN - AS INTRODUCED
2025 SESSION
25-0223
02/11
HOUSE BILL563-FN
AN ACTrelative to adequate education grant amounts for pupils receiving special education services.
SPONSORS:Rep. Ladd, Graf. 5; Rep. Cordelli, Carr. 7; Rep. Drye, Sull. 7; Rep. Spilsbury, Sull. 3; Rep. S. Smith, Sull. 3; Rep. Leishman, Hills. 33; Rep. Cornell, Hills. 22; Sen. Ward, Dist 8
COMMITTEE:Education Funding
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ANALYSIS
This bill increases education adequacy costs, and provides 3 weighted categories of special education services for consideration regarding differentiated aid in adequacy education grant funds.
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Explanation:Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0223
02/11
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACTrelative to adequate education grant amounts for pupils receiving special education services.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Cost of an Opportunity for an Adequate Education. Amend RSA 198:40-a, I-II(c) to read as follows:
I. For the biennium beginning July 1, [2023] 2025, the annual cost of providing the opportunity for an adequate education as defined in RSA 193-E:2-a shall be as specified in paragraph II. The department shall adjust the rates specified in this paragraph in accordance with RSA 198:40-d.
II.(a) A cost of [$4,100] $4,266 per pupil in the ADMR, plus differentiated aid as follows:
(b) An additional [$2,300] $2,393 for each pupil in the ADMR who is eligible for a free or reduced price meal anytime during the determination year; plus
(c) An additional [$800] $832 for each pupil in the ADMR who is an English language learner anytime during the determination year; plus
2 Cost of an Opportunity for an Adequate Education; Special Education Services. RSA 198:40-a, II(d) is repealed and reenacted to read as follows:
(d)(1) An additional $2,185 for each pupil in the ADMR who is receiving special education services with a category A disability, $3,278 for each pupil in the ADMR who is receiving special education services with a category B disability, and $7,648 for each pupil in the ADMR who is receiving special education services with a category C disability.?
(2) ? For this subparagraph, "category A disability” applies to pupils receiving special education services inside regular class 80 percent or more of the day; "category B disability” applies to pupils receiving special education services inside regular class less than 80 percent of the day; and “category C disability” applies to pupils receiving special education services in separate schools, residential facilities, homebound, or hospital placements.?Categories A, B, and C apply to pupils ages 5 through 21. Any pupil receiving special education services identified by the department that was not identified in the department’s data collection efforts to determine categories A, B, and C, shall default to category A.
3 Effective Date. This act shall take effect July 1, 2025.
LBA
25-0223
1/8/25
HB 563-FN- FISCAL NOTE
AS INTRODUCED
AN ACTrelative to adequate education grant amounts for pupils receiving special education services.
FISCAL IMPACT:
Estimated State Impact
FY 2025 FY 2026 FY 2027 FY 2028
Revenue $0 $0 $0 $0
Revenue Fund(s) None
Expenditures* $0 FY 2026District Adequacy - Approximately $7.1MCharter School Grants - Approximately $50KEducation Freedom Accounts - Approximately $44KTotal - Approximately $7.2M FY 2027 and BeyondIndeterminable, but similar magnitude expected(see methodology below)
Funding Source(s) Education Trust Fund
Appropriations* $0 Statutory Open Appropriation
Funding Source(s) Education Trust Fund
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill
Estimated Political Subdivision Impact
FY 2025 FY 2026 FY 2027 FY 2028
Local Revenue $0 FY 2026Approximately $7.1M FY 2027 and BeyondIndeterminable, but similar magnitude expected(see methodology below)
Local Expenditures $0 $0 $0 $0
Estimated State Impact
FY 2025
FY 2026
FY 2027
FY 2028
Revenue
$0
$0
$0
$0
Revenue Fund(s)
None
Expenditures*
$0
FY 2026
District Adequacy - Approximately $7.1M
Charter School Grants - Approximately $50K
Education Freedom Accounts - Approximately $44K
Total - Approximately $7.2M
FY 2027 and Beyond
Indeterminable, but similar magnitude expected
(see methodology below)
Funding Source(s)
Education Trust Fund
Appropriations*
$0
Statutory Open Appropriation
Funding Source(s)
Education Trust Fund
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill
Estimated Political Subdivision Impact
FY 2025
FY 2026
FY 2027
FY 2028
Local Revenue
$0
FY 2026
Approximately $7.1M
FY 2027 and Beyond
Indeterminable, but similar magnitude expected
(see methodology below)
Local Expenditures
$0
$0
$0
$0
METHODOLOGY:
This bill, effective for FY 2026, replaces the current special education (SPED) differentiated aid definition for students receiving (SPED) services with the following categories:
This bill will impact adequacy payments to school districts, charter school grants, and education freedom accounts (EFAs).
Disability Category Estimated # Students
District Public Schools Charter Public Schools EFAs
Category A 22,077 583 360
Category B 5,007 46 40
Category C 325 0 0
"Catch All" 4,060 348 0
Grand Total 31,469 977 400
Disability Category
Estimated # Students
District Public Schools
Charter Public Schools
EFAs
Category A
22,077
583
360
Category B
5,007
46
40
Category C
325
0
0
"Catch All"
4,060
348
0
Grand Total
31,469
977
400
In addition to the SPED per pupil aid amount change, this bill also seeks to update the statute for base and other differentiated aid per pupil amounts with the 2% annual adjustment increase calculated by the Department of Education. Below is a summary of this bill’s impact on per pupil aid amounts:
Per Pupil Aid Amount Current Law Proposed Increase / (Decrease)
Base Adequacy $4,265.64 $4,266.00 $0.36
Differentiated Aid
Free-Reduced Price Meal Eligible $2,392.92 $2,393.00 $0.08
English Language Learner $832.32 $832.00 ($0.32)
Special Education $2,184.84 $0.00 ($2,184.84)
SPED - Category A $0.00 $2,185.00 $2,185.00
SPED - Category B $0.00 $3,278.00 $3,278.00
SPED - Category C $0.00 $7,648.00 $7,648.00
SPED - "Catch All" $0.00 $2,185.00 $2,185.00
Per Pupil Aid Amount
Current Law
Proposed
Increase / (Decrease)
Base Adequacy
$4,265.64
$4,266.00
$0.36
Differentiated Aid
Free-Reduced Price Meal Eligible
$2,392.92
$2,393.00
$0.08
English Language Learner
$832.32
$832.00
($0.32)
Special Education
$2,184.84
$0.00
($2,184.84)
SPED - Category A
$0.00
$2,185.00
$2,185.00
SPED - Category B
$0.00
$3,278.00
$3,278.00
SPED - Category C
$0.00
$7,648.00
$7,648.00
SPED - "Catch All"
$0.00
$2,185.00
$2,185.00
District Adequacy
Based on the SPED data and per pupil aid amounts presented above, this bill will increase adequacy grants to school districts by an estimated $7,139,756 in FY 2026:
Current Law Proposed Increase
Adequacy Grant $716,948,319 $724,088,075 $7,139,756
Statewide Education Property Tax (SWEPT) $363,516,836 $363,516,836 $0
Final State Grant $1,080,465,155 $1,087,604,911 $7,139,756
Current Law
Proposed
Increase
Adequacy Grant
$716,948,319
$724,088,075
$7,139,756
Statewide Education Property Tax (SWEPT)
$363,516,836
$363,516,836
$0
Final State Grant
$1,080,465,155
$1,087,604,911
$7,139,756
Data for FY 2027 and FY 2028 is not yet available, therefore, this bill’s impact on district adequacy beyond FY 2026 is indeterminable, however expected to be in the $7 million to $8 million range per year.
Charter School Grants
Based on the SPED student data presented above, this bill would increase aid to charter schools by $50,434 in FY 2026. Data to estimate FY 2027 and FY 2028 student counts is not yet available, therefore, this bill’s impact on charter school grants beyond FY 2026 is indeterminable, however expected to be approximately the same as the FY 2026 estimate.
Education Freedom Accounts (EFAs)
Based on the SPED student data presented above, this bill would increase EFAs by $43,784 in FY 2026. Data to estimate FY 2027 and FY 2028 student counts is not yet available, therefore, this bill’s impact on EFAs beyond FY 2026 is indeterminable, however expected to be approximately the same as the FY 2026 estimate.
The Department notes that “point in time” counts done on October 1 are on a federal fiscal year (FFY) basis (FFY 23 = school year 2023-2024 = October 2023 counts), and there is an approximate six-month lag between when the “point in time” counts are available from the Bureau of Special Education to the Bureau of School Finance. Therefore, annual November 15th preliminary estimates will not be able to use current school year “point in time” counts. Also, the SPED “point in time” counts are done in the fall, which means the Bureau of School Finance wouldn’t be aware if a student shifted categories during the school year.
AGENCIES CONTACTED:
Department of Education