Bill > HB1824

This bill addresses financial challenges for school districts by establishing several key mechanisms for state and municipal assistance. The bill authorizes the commissioner of education, with approval from the joint legislative fiscal committee, to enter into loan agreements with school districts experiencing financial insolvency (defined as having annual expenditures that exceed available funding). The loan agreements can have a maximum term of 5 years, with interest rates determined by the specific loan terms. Additionally, the bill creates a school district adequacy revolving loan fund that allows districts to borrow up to 75 percent of their anticipated state adequacy funding to address cash flow issues. Municipalities are also empowered to provide emergency financial assistance to financially insolvent school districts from existing municipal funds. The bill further increases the percentage of year-end unassigned general funds that school districts can retain from 5 to 10 percent of their current fiscal year's net assessment, providing more financial flexibility. Before accessing the revolving loan fund, school districts must obtain governing body approval and disclose recent financial activities. Loans from the fund must be fully repaid within 5 years, and districts are prohibited from issuing certain types of borrowing notes during this repayment period. The legislation aims to provide targeted, temporary fiscal stabilization mechanisms for struggling school districts while maintaining oversight and accountability.

Education

https://gc.nh.gov/bill_Status/billinfo.aspx?id=2317&inflect=2