NH to Split Federal Funds with School Districts (NH)

November 16, 2010

The joint legislative Fiscal Committee voted yesterday to distribute $41 million in federal funding between school districts and the state.

School superintendents said while they are happy to accept the federal stimulus money coming to local school districts, the state’s education funding formula needs to be revamped.

If the Executive Council gives its approval tomorrow, more than $20 million will be divided among communities, with the remainder going to the state’s education trust fund, according to committee Chairman Marjorie Smith, D-Durham.

"It’s $20 million going to the districts above and beyond all the other money they get," she said.

Some Southern New Hampshire school officials said yesterday the money would certainly come in handy as they deal with tight budgets.

Derry fares the worst in the state under the new education funding formula. It is expected to lose about $7.1 million in fiscal year 2012 unless lawmakers vote to continue the current system of distributing aid and abandon the new formula.

Although Derry School Superintendent Mary Ellen Hannon could not be reached for comment yesterday, she has said her district would be devastated under the new funding formula.

When the state announced in September the entire $41 million might go toward education adequacy funding, Hannon was not happy.

"I would appreciate money coming to save teachers’ jobs," she said. "We are definitely going to be one of the poster children for lost jobs in our districts."

Hannon said she was struggling to plug a $1.5 million budget gap and avoid laying off at least 41 teachers in addition to other school personnel before the start of the next school year.

Londonderry ranks fifth in New Hampshire in the amount of money it must send to the state to be distributed as education aid. The town must contribute $1.5 million in fiscal year 2012 under the state’s new funding formula, to be implemented July 1.

"Any additional money would help to staunch some of the bleeding," Londonderry Superintendent Nate Greenberg said yesterday.

Any money Londonderry receives would help the district retain jobs it might otherwise have to cut, Greenberg said.

"There would be positions lost across the board," he said. "It’s going to have a significant impact."

The $10 billion distributed to states by the U.S. Department of Education is viewed as a way to save school employees’ jobs. Federal education officials estimated the $41 million would save 700 teaching jobs in the state.

Salem Superintendent Michael Delahanty said the stimulus money would provide districts with some relief, although the state’s funding formula is a problem for many communities.

"Half is better than nothing," he said. "That is unfortunate that districts like Derry are losing a substantial amount of money."

While Salem would receive about $2.2 million from the state in fiscal year 2012, the district’s declining student enrollment might force it to reduce staff, Delahanty said.

Frank Bass, superintendent for Windham and Pelham schools, was hesitant to comment on the legislative pr oposal because he had yet to see it.

"Obviously, any money coming to the districts would be welcomed money," he said. "I’m more interested in creating a more equitable way (to fund education)."

Bass said towns are experiencing a drop in revenues and must somehow make up the difference. The new funding formula is having an adverse impact on many communities, especially in Southern New Hampshire.

"Local towns are getting hit," he said.

Christopher Clement, director of the state’s Office of Economic Stimulus, said in a report to the committee that federal law requires schools to use the money to keep current employees, to recall or rehire former employees, and to hire new employees. Schools that have excess money at the end of this school year can use the money to hire new teachers through the end of September, he said.

The legislative proposal was approved, 6-4, down party lines, with Democrats voting to distribute some of the stimulus money and Republicans voting to keep it in state coffers. The money will provide much-needed relief to communities, Rep. Lou D’Allesandro, D-Manchester, said.

"The big deal is it should reduce property taxes, which is what it’s all about," he said.