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End of Session Nears
The House and Senate met this week, taking action to meet the May 12 deadline for Senate/House bills remaining in the House or Senate. Any bill amended with different language in the House/Senate version must have a committee of conference created by May 19: the House has already scheduled a session that day. Committee of conference reports must be completed by May 26, and House Speaker Jasper has scheduled a session on June 1st to take action on these reports. June 2 is the deadline for this session.
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Senate Amends Options for Official Ballot Districts
HB1375
, as it passed the House, provides an optional procedure, in political subdivisions that have adopted official ballot (SB2) voting, to establish a charter commission for the sole purpose of adopting a charter to modify procedures for the consideration, amendment, and adoption of an operating or default budget. On a voice vote, the Senate adopted an amended version that provides enabling legislation to permit political subdivisions that have adopted official ballot voting to prohibit amendments to the operating budget at the deliberative session of the annual meeting, or to eliminate the deliberative session entirely. The amended bill also permits adoption of a requirement for the default budget to be placed on the ballot at the second session (voting day) as a separate contingent warrant article. If the operating budget is not adopted, the votes on the contingent default budget article would be counted to determine whether the default budget is adopted. If neither the operating budget nor the default budget is adopted, the governing body (school board) must call a special one-time meeting to take up the issue of a revised operating budget only. OTP/A
The bill now returns to the House for concurrence, non-concurrence, or creation of a committee of conference.
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Senate Kills Requirement for Additional District Reports to the PELRB
HB1322
would have required public employers to calculate and report to the public employee labor relations board, the board of the public employer, and each employee within the bargaining unit, the ratio of the number of employees in the unit paying dues to the total number of employees in the unit. ITL
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House Fails to Pass Balanced Budget Constitutional Amendment
CACR27
is a proposal to amend New Hampshire's Constitution to purportedly contain a provision requiring a balanced budget
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(Note existing law: RSA 9:8-b Adoption of Operating Budget. - The general court shall not adopt an operating budget for any fund, or any other legislation which provides for appropriations, which exceed the state's total estimated revenues from existing, increased, or new taxes, fees, operating income and other sources.) The proposed language states, "The state shall not, without an affirmative vote of two-thirds of the total number of representatives apportioned under part 2, article 9 and of the total number of senators allocated by part 2, article 25, either spend more on operating expenses in any budget period than it receives in revenues, plus any surplus from the previous budget period, or use the proceeds of any instrument of indebtedness to fund, directly or indirectly, its operating expenditures." The House vote of 201-139 failed to meet the three-fifths requirement for passage, and the bill was subsequently tabled.
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House Proposes Department of Education Charter School Position
SB483
originated as a bill to establish the position of chartered public school program officer in the Department of Education. After referral to the Senate Finance Committee, it was amended to form a committee to study the necessity of creating a chartered public school program officer position and to study appropriations to chartered public schools for the 2016 and 2017 fiscal years. The House took action amending the bill again back to establishing the position of a chartered school program officer in the Department of Education. The new position would be established no later than October 1, 2017. OTP/A
The bill now returns to the Senate for concurrence, non-concurrence, or creation of a committee of conference.
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Withdrawal From A Cooperative School District: House Concurs with Senate Version
HB1303
establishes a commission that would study all issues relating to pre-existing districts withdrawing from a cooperative school district. This week the House agreed to a Senate amendment adding two members to the commission. Membership on the commission includes three Representatives, one Senator, the Dept. of Education, Dept. of Revenue Administration, two cooperative school board members, 2 superintendents of cooperative districts, NHSBA, NHSAA, the Council of School Attorneys, and two members of the public, one appointed by the House Education Chair and one by the Senate Education Chair. An interim report is due on or before January 1, 2017 with a final report due on or before November 1, 2017. Concur
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Non-Academic Surveys
SB320
provides that no student shall be required to volunteer or submit to a non-academic survey or questionnaire without written consent of a parent or legal guardian. The current proposal creates an exception to this requirement for the Youth Risk Behavior Survey (YRBS) developed by the Centers for Disease Control and Prevention. After passing the Senate the bill was amended in the House, but the Senate did not concur with the change and requested a Committee of Conference to resolve differences. Senators named to the Committee are Senators Reagan, Avard and Watters. This week, the House acceded to the request and named Representatives Ladd, Balcom, Cordelli and Shaw as conferees.
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NH Retirement System and Employer Contribution Rates
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An Increase is Coming
This week, the Retirement System Board of Trustees made a decision that will impact employer contribution rates paid by school districts and municipalities. Every five years the Trustees review an "experience" study, and review important actuarial assumptions that have been used by the system and its actuaries. This week, the Board of Trustees voted to adopt revised actuarial assumptions based on the results of the five-year study. The Board voted to reduce the current assumed rate of return, lowering it from 7.75% to 7.25%. The Board believes the new assumptions better reflect the retirement system's actual and anticipated experience. As NHRS noted, "Of all the assumptions used to estimate the cost of a public pension plan, none has a larger effect on the plan's employer contribution rates than the investment return assumption. This is because over time, earnings from investments account for a majority of the retirement system's revenues. The last time the assumed rate of return was changed was May 2011, when it was lowered from 8.5% to 7.75%."
Employer contribution rates are adopted by the NHRS Board of Trustees every two years. This fall, likely in September 2016, rates will be formally adopted and become effective July 1, 2017 for fiscal years 2018 and 2019. Using the new and lower investment return assumption will likely result in a 10% increase in the new employer contribution rate for teachers. Contributions on behalf of employees (non-certified staff) will likely see a lower increase, probably less than 2%. Please note that these comments are based on preliminary information provided in reports made to NHRS. By statute, new employer contribution rates will be set this coming fall.
These new contribution rates will be important factors for consideration by school boards as they begin deliberations next fall for the FY 2018 school budget.
