Relative to increasing the adequacy grant for pupils receiving special education services.
Summary
HB 603 would substantially increase the special education component of New Hampshire’s school adequacy formula. Under current law, the additional amount included in the cost of an adequate education for each pupil receiving special education services is $2,100; this bill would raise that amount to $29,556 for the 2025-2026 biennium, with future years adjusted by the state’s adequacy formula. The bill also updates the base year for the adequacy calculation to the biennium beginning July 1, 2025, and keeps the existing differentiated aid for students eligible for free or reduced-price meals and English language learners.
In practical terms, the bill would dramatically increase state education aid tied to special education enrollment. The fiscal note estimates an FY 2026 state cost of about $879.2 million across district adequacy grants, charter school grants, and education freedom accounts, with roughly $841.5 million flowing to school district adequacy grants alone. Because the special education adjustment is embedded in the adequacy formula, the change would affect not only traditional public school districts but also charter schools and education freedom account payments for eligible students.
Impact
The bill amends RSA 198:40-a, the statute that sets the annual cost of an adequate education in New Hampshire, by replacing the special education add-on amount with a much larger figure. This would increase the calculated adequacy grant for municipalities and, by extension, the state aid distributed to school districts, charter schools, and education freedom accounts. The fiscal note indicates the change would be funded through the Education Trust Fund and, if necessary, the general fund under existing statutory warrant authority.
Sentiment
Based on the available materials, the bill appears to be framed as a major expansion of support for students receiving special education services, with sponsors from both chambers indicating interest in increasing adequacy funding. No committee transcript or recorded vote is provided, so there is no documented floor or committee debate to gauge broader sentiment. The fiscal note, however, suggests the proposal would be viewed as a very large spending increase, which likely shapes the overall discussion around affordability and state budget impact.
Contention
The central point of contention is the size of the increase: raising the special education adequacy amount from $2,100 to $29,556 would significantly expand state obligations, with the fiscal note projecting hundreds of millions of dollars in additional annual costs. Supporters are likely to emphasize improved funding for special education students and school districts, while opponents or budget-conscious reviewers would likely focus on the magnitude of the fiscal impact, the effect on the Education Trust Fund and general fund, and the uncertainty of future-year costs. Because the bill also affects charter schools and education freedom accounts, any debate may extend beyond district aid to broader school-choice funding streams.