New Hampshire 2025 Regular Session

New Hampshire Senate Bill SB295 Compare Versions

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Old	New	Differences
1	1	SB 295-FN - AS AMENDED BY THE SENATE
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5	5	03/13/2025 0793s
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7	7	2025 SESSION
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9	9	25-0955
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11	11	07/02
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15	15	SENATE BILL295-FN
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19	19	AN ACTrelative to education freedom accounts.
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23	23	SPONSORS:Sen. Sullivan, Dist 18; Sen. Gannon, Dist 23; Sen. Murphy, Dist 16; Sen. Innis, Dist 7; Sen. Avard, Dist 12; Sen. Pearl, Dist 17; Sen. Gray, Dist 6; Rep. McDonnell, Rock. 25; Rep. Noble, Hills. 2; Rep. Rice, Hills. 38; Rep. Notter, Hills. 12
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27	27	COMMITTEE:Education Finance
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35	35	AMENDED ANALYSIS
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39	39	This bill:
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43	43	I. Increases the number of students eligible for education freedom accounts by removing household income thresholds.
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47	47	II. Removes certain conditions tied to education freedom account funds.
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55	55	Explanation:Matter added to current law appears in bold italics.
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57	57	Matter removed from current law appears [in brackets and struckthrough.]
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59	59	Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
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61	61	03/13/2025 0793s25-0955
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63	63	07/02
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67	67	STATE OF NEW HAMPSHIRE
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71	71	In the Year of Our Lord Two Thousand Twenty Five
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75	75	AN ACTrelative to education freedom accounts.
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79	79	Be it Enacted by the Senate and House of Representatives in General Court convened:
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83	83	1 Education; Education Freedom Accounts; Definitions. Amend RSA 194-F:1, VI to read as follows:
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85	85	VI. "Eligible student" means a resident of this state who is eligible to enroll in a public elementary or secondary school [and whose annual household income at the time the student applies for the program is less than or equal to 350 percent of the federal poverty guidelines as updated annually in the Federal Register by the United States Department of Health and Human Services under 42 U.S.C. section 9902(2). No income threshold need be met in subsequent years, provided the student otherwise qualifies]. Students in the special school district within the department of corrections established in RSA 194:60 shall not be eligible students.
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87	87	2 New Paragraphs; Education; Education Freedom Accounts; Application for an Education Freedom Account. Amend RSA 194-F:3 by inserting after paragraph I the following new paragraphs:
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89	89	I-a. For the 2025-2026 fiscal year, and each fiscal year thereafter, total enrollment for the education freedom account program shall be capped at 10,000. However, in any fiscal year when student applications for the education freedom account program are equal to or greater than 90 percent of the total enrollment cap applicable to that fiscal year, the total enrollment cap shall increase by 25 percent. The department shall publish on its website information identifying the total enrollment cap when it is increased pursuant to this paragraph.
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91	91	I-b. In any fiscal year, if student applications during the spring application window exceed the program cap, priority shall be determined in the following order:
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93	93	(a) A student currently enrolled in the EFA program;
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95	95	(b) A sibling of a student currently enrolled in the EFA program;
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97	97	(c) A child with disabilities as defined by RSA 186-C:2;
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99	99	(d) A student whose family income is less than or equal to 350 percent of the federal poverty guidelines as updated annually by the United States Department of Health and Human Services under 42 U.S.C. section 9902 (2).
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101	101	I-c. In any fiscal year, for students applying after June 30 during the fall application window, only students who meet the priority categories as defined by RSA 194-F:3, I-b(b)-(d) are eligible for pro-rated accounts. The scholarship organization shall prioritize current EFA students for renewal in the spring by reserving space for them under that year’s enrollment cap before awarding new EFA accounts for fall applicants.
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103	103	3 Education; Education Freedom Accounts; Application for an Education Freedom Account. Amend RSA 194-F:3, III(b) to read as follows:
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105	105	(b) The student on whose behalf the parent is applying is an eligible student and meets the priority guidelines when applications exceed the enrollment cap.
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107	107	4 New Paragraph; Education; Education Freedom Accounts; Authority and Responsibilities of the Scholarship Organization. Amend RSA 194-F:4 by inserting after paragraph IV the following new paragraph:
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109	109	IV-a. The scholarship organization shall establish and publicize no less than 2 deadlines by which application forms must be submitted.
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111	111	5 Effective Date. This act shall take effect 60 days after its passage.
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115	115	LBA
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117	117	25-0955
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119	119	1/7/25
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123	123	SB 295-FN- FISCAL NOTE
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125	125	AS INTRODUCED
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129	129	AN ACTexpanding the number of students eligible for education freedom accounts.
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133	133	FISCAL IMPACT:
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136	136	Estimated State Impact
137	137	FY 2025 FY 2026 FY 2027 FY 2028
138	138	Revenue $0 $0 $0 $0
139	139	Revenue Fund(s) None
140	140	Expenditures* $0 Indeterminable
141	141	Funding Source(s) Education Trust Fund
142	142	Appropriations* $0 Statutory Appropriation Under RSA 194-F:11 for Any Amount Necessary to Fund Program
143	143	Funding Source(s) Education Trust Fund
144	144	Expenditure = Cost of bill Appropriation = Authorized funding to cover cost of bill
145	145	Estimated Political Subdivision Impact
146	146	FY 2025 FY 2026 FY 2027 FY 2028
147	147	Local Revenue $0 Indeterminable
148	148	Local Expenditures $0 Indeterminable
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154	154	Estimated State Impact
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158	158	FY 2025
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160	160	FY 2026
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164	164	FY 2028
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166	166	Revenue
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168	168	$0
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176	176	Revenue Fund(s)
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178	178	None
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180	180	Expenditures*
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182	182	$0
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184	184	Indeterminable
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186	186	Funding Source(s)
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188	188	Education Trust Fund
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190	190	Appropriations*
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192	192	$0
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194	194	Statutory Appropriation Under RSA 194-F:11 for Any Amount Necessary to Fund Program
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196	196	Funding Source(s)
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198	198	Education Trust Fund
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200	200	Expenditure = Cost of bill Appropriation = Authorized funding to cover cost of bill
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204	204	Estimated Political Subdivision Impact
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210	210	FY 2026
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214	214	FY 2028
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216	216	Local Revenue
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218	218	$0
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220	220	Indeterminable
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222	222	Local Expenditures
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224	224	$0
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226	226	Indeterminable
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230	230	METHODOLOGY:
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232	232	This bill eliminates the income requirement for eligibility for the education freedom account (EFA) program. As of September 2024, 5,321 students were in the EFA program with an annualized cost estimated at $27.7 million with the grant averaging $5,204 per student. The average adequacy education grant (FY 2026 preliminary estimates as of November 15, 2024) to public district schools is $7,108, which includes cost of an opportunity for an adequate education, and extraordinary needs and hold harmless grants. Students entering the program under this bill would likely receive a grant less than the current average, since the newly eligible population would not be eligible for free or reduced-priced meal (F&R) differentiated aid. It is estimated that the average EFA grant for the newly eligible population under this bill would be approximately $4,419 (assuming 7% are eligible for special education differentiated aid).
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236	236	The Department of Education states this bill will result in an indeterminable number of new students accessing the program. The following is information relative to the different situations in which a student may access the EFA program:
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248	248	As students potentially leave traditional district schools and join the EFA program, districts may feel pressure to reduce their local expenditures to better fit the reduced population served. It is unknown the impact this would have on local expenditures, but this could potentially result in an indeterminable decrease.
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252	252	It should be noted, that under current law, EFA and charter school grants are paid based on current year enrollments, while district adequacy grants are paid based on the previous school year enrollments (one year lag).
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256	256	AGENCIES CONTACTED:
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258	258	Department of Education