HB 440-FN – AS INTRODUCED
2009 SESSION
04/09
HOUSE BILL 440-FN
AN ACT repealing the state’s authority to bond school building aid costs.
SPONSORS: Rep. Hess, Merr 9; Rep. Major, Rock 8; Rep. Kurk, Hills 7; Rep. Comerford, Rock 9
This bill repeals the state’s authority to bond school building aid costs for the 2008 and 2009 fiscal years.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0034
04/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT repealing the state’s authority to bond school building aid costs.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Repeal. The following are repealed:
I. 2008S, 1:7, relative to contingent school building aid transfer for the 2008 fiscal year.
II. 2008S, 1:8, relative to contingent school building aid transfer for the 2009 fiscal year.
2 Effective Date. This act shall take effect upon its passage.
LBAO
09-0034
12/08/08
HB 440-FN - FISCAL NOTE
AN ACT repealing the state’s authority to bond school building aid costs.
FISCAL IMPACT:
The Treasury Department states this bill may increase state general fund expenditures by $40,000,000 in FY 2009 and decrease state general fund expenditures by an indeterminable amount in FY 2010 and each fiscal year thereafter. There will be no fiscal impact on state, county, and local revenue or county and local expenditures.
METHODOLOGY:
The Treasury Department states this bill repeals the contingency contained in Chapter 1 of the 2008 Special Session that would allow for the bonding of school building aid expenditures of up to $40,000,000 in both FY 2008 and FY 2009 in the event of a general fund unreserved, undesignated deficit at the close of the fiscal year. FY 2008 and FY 2009 operating budget appropriations for school building are funded from the general fund. The Department states it assumes the State will not bond building aid expenditures in FY 2008 since that would require reopening the FY 2008 accounting records and delaying the issue of the FY 2008 Comprehensive Annual Financial Review. In FY 2009, school building aid bonds will not be issued until such time as FY 2009 books are closed and the amount of the general fund deficit, if any, can be determined. At that time, if such bonds are issued, they will likely be the amount of a deficit, up to a maximum of $40,000,000. Bonds would not likely be issued until December 2009 with the first debt service payment taking place in January 2010 (FY 2010). By eliminating the contingency allowing for the bonding of school building aid expenditures, this bill may increase state general fund expenditures by $40,000,000 in FY 2009 if a deficit occurs, and may decrease general fund expenditures for debt service by an indeterminable amount in FY 2010 and each fiscal year thereafter.