§ 198:41 — Determination of Education Grants

I. Except for municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the total education grant for the municipality as follows:
(a) Add the per pupil cost of providing the opportunity for an adequate education for which each pupil is eligible pursuant to RSA 198:40-a, I-III, and from such amount;
[Paragraph I(b) effective until July 1, 2026; see also paragraph I(b) set out below.]
(b) Subtract the amount of the education tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:8 for the next tax year; and
[Paragraph I(b) effective July 1, 2026; see also paragraph I(b) set out above.]
(b) Subtract the amount of the education tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:8 for the next tax year;
[Paragraph I(c) effective until July 1, 2026; see also paragraph I(c) set out below.]
(c) Add the municipality's extraordinary need grant pursuant to RSA 198:40-f.
[Paragraph I(c) effective July 1, 2026 until July 1, 2027; see also paragraph I(c) set out above and below.]
(c) Add the municipality's extraordinary need grant pursuant to RSA 198:40-f; and
[Paragraph I(c) effective July 1, 2027; see also paragraph I(c) set out above.]
(c) Add the municipality's extraordinary need grant pursuant to RSA 198:40-f.
[Paragraph I(d) effective July 1, 2026 until July 1, 207; see also paragraph I(d) set out below.
(d) Add the municipality's fiscal capacity disparity aid grant pursuant to RSA 198:40-g.
[Paragraph I(d) effective July 1, 2027; see also paragraph I(d) set out above.]
(d) Add the municipality's fiscal capacity disparity aid grant pursuant to RSA 198:40-g; and
[Paragraph I(e) effective July 1, 2027.]
(e) For municipalities with a total ADMR of 5,000 or more, subtract the amount necessary to limit the total additional targeted aid to $3,750 per pupil in the municipality's ADMR. For the purpose of this paragraph, additional targeted aid shall be the sum of a municipality's extraordinary needs grant and fiscal capacity disparity aid grant.
I-a. For municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of education shall determine the total education grant for each municipality as the lesser of the 2 following calculations:
(a) The amount calculated in accordance with paragraph I of this section; or
(b) The total amount paid for items of current education expense as determined by the department of education minus the amount of the education tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:8 for the next tax year.
(b) Subtract the amount of the education tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:8 for the next tax year;
II. For fiscal year 2024 and fiscal year 2025, the department of education shall distribute a hold harmless grant equal to any amount in which a municipality's adequacy grant is less than 104 percent of the fiscal year 2024 preliminary estimate for the adequacy grant as of November 15, 2022. No municipality with a current adequacy grant amount that exceeds the fiscal year 2024 preliminary estimate shall receive a hold harmless grant. No hold harmless grant shall be distributed to any municipality in which the municipality's education property tax warrant pursuant to RSA 76:8 exceeds the total cost of an adequate education.
III. Beginning in fiscal year 2026, the hold harmless grant calculated under paragraph II shall decrease as a percent of the amount awarded under the following schedule:
(1) 80 percent of the calculated fiscal year 2025 hold harmless grant shall be awarded for fiscal year 2026 and fiscal year 2027.
(2) 60 percent of the calculated fiscal year 2025 hold harmless grant shall be awarded for fiscal year 2028 and fiscal year 2029.
(3) 40 percent of the calculated fiscal year 2025 hold harmless grant shall be awarded for fiscal year 2030 and fiscal year 2031.
(4) 20 percent of the calculated fiscal year 2025 hold harmless grant shall be awarded for fiscal year 2032 and fiscal year 2033.
(5) No hold harmless grant shall be awarded for fiscal year 2034 and each year thereafter.
IV. The department shall use the best available data and methods to estimate ADMR and education grants by November 15 of the year preceding the school year for which aid is determined.
V. The department shall produce a revised estimate of grants using actual determination year data for the purpose of settling municipal tax rates. A municipality's grant estimate shall not be less than 95 percent of the estimate reported pursuant to paragraph IV. The commissioner of the department of education shall provide the estimate for the current fiscal year to the commissioner of the department of revenue administration no later than October 1 of each year.
VI.The department shall make a final determination of grant amounts by October 1. A municipality's grant estimate shall not be less than 95 percent of the estimate reported pursuant to paragraph IV. The department shall adjust the April grant disbursement required pursuant to RSA 198:42 so that the total amount disbursed for the fiscal year shall match the final grant determination.
VI-a. The final determination of the grant amount can be modified after October 1 after a vote in the affirmative by the state board under the following conditions:
(a) The department or a school district petitioned the state board to modify the October 1 grant determination prior to January 15 of the same fiscal year and the state board votes in the affirmative to accept the petition by February 15;
(b) The change being considered within the scope of the petition shall have a total adequacy dollar impact greater than $10,000 for at least one municipality; and
(c) The petition specifically identifies the municipality or municipalities requiring change in the final grant amount and the amount being modified.
VII. Reports of grant determinations for municipalities required pursuant to paragraphs IV- VI shall be available to the public by the date specified in paragraphs IV- VI, and the department shall make available a report for multi-town school districts and municipalities with multiple school districts. The department of education shall provide the department of revenue administration the information needed to set tax rates.

Legislative History

1999, 17:41; 338:10. 2003, 241:7. 2004, 200:8; 244:4. 2005, 257:7, 8. 2006, 6:1, 2. 2007, 270:3, eff. June 29, 2007. 2008, 173:9, eff. July 1, 2009; 173:17, I, eff. June 30, 2009; 173:17, III, eff. July 1, 2011. 2011, 258:3, eff. July 1, 2011. 2013, 4:1, eff. Mar. 18, 2013; 144:120, eff. July 1, 2013. 2015, 276:139, eff. July 1, 2015; 276:140, eff. July 1, 2017. 2016, 8:4, 5, eff. Mar. 16, 2016; 85:9, eff. July 18, 2016. 2019, 346:235, eff. July 1, 2020; 346:236, III, eff. July 1, 2021; 346:238, eff. July 1, 2019. 2021, 91:57, eff. July 1, 2021. 2022, 175:7, eff. July 1, 2022; 318:2, eff. July 1, 2022. 2023, 79:156, eff. July 1, 2023. 2024, 332:2, eff. Oct. 1, 2024. 2025, 141:83, eff. July 1, 2025; 142:2, eff. July 1, 2026; 142:3, eff. July 1, 2027.