Committee Summary for Senate Education (10/14/2025)

Bill/Time	Type	Title	Sponsor
HB292 2025-2978s 00:10:54.480 - 12:06:55 PM	Public Hearing	establishing a commission to study school administrative unit consolidation.	Ladd, Rick(R)[B+]2024
HB292 2025-2978s 02:39:33.200 - 2:35:34 PM	General Working Session	establishing a commission to study school administrative unit consolidation.	Ladd, Rick(R)[B+]2024

HB292 2025-2978s: Senator Ward (Chair) Information Only00:10:54.480 - 12:06:55 PM; Senator Ward opens the public hearing, providing background on the Claremont School District's $5 million deficit due to financial mismanagement. She notes steps taken like closing an elementary school and relying on volunteers for extracurriculars. Emphasizes priority to keep schools open through the year and introduces the amendment for flexibility in using adequacy funds. Mentions collaboration with the Department of Education and State Treasurer, and invites Chairman Lad from the House Education Committee. Announces transition to executive session after the hearing.
HB292 2025-2978s: Jim Shaughnessy, Attorney for Claremont School District Information Only00:13:58.639 - 12:09:59 PM; Jim Shaughnessy, attorney with Drummond Woodson Law Firm, introduces interim superintendent Carrie Kennedy and business administrator Matt Angel. Provides a detailed update on SAU 6 structure, recent leadership changes, and the $5.1 million deficit. Explains causes including unreconciled payments, grant reimbursements held for non-compliance, fund balance miscalculations leading to low tax rates, health insurance errors (e.g., terminated employees on policy, under-captured contributions, incorrect retiree selections), overspending, and a non-functional general ledger. Details budget cuts: 19 teacher contracts not accepted, 20 positions unfilled, SAU staff reductions saving $760,000, closure of Bluff Elementary saving $30-60,000, cancellation of extracurriculars funded by community donations ($145,000 raised). Describes the $4 million RAN loan from Claremont Savings Bank at 2% interest for cash flow, not reducing deficit. Proposes adequacy revolving loan fund for early access to entitled funds, repayable with interest via offsets, as a safety net until 2030 to ensure stability for contracts, vendors, and school operations. Outlines long-term plans: consolidations, better budgeting, audits (FY23-25 in progress, independent operations review, special ed and HR audits), improved controls (reconciliations, two-factor authorization, purchase orders). Stresses no bailout, just early access to existing funds, as alternatives like bonding for operations are illegal. Answers questions on health insurance reconciliation, deficit math, accounting errors (incompetence vs. malfeasance), adequacy funding ($16M grant + $1.5-1.8M swept tax), audits, amendment terms (75% cap sufficient), cash flow timeline (critical in March-June), RAN interest and future availability, general ledger issues, board oversight, reserves depletion, treasurer role, grant non-compliance, and policy manuals.
HB292 2025-2978s: Matt Angel, Business Administrator, SAU 6 Information Only00:00:00.000 - 11:56:01 AM; Matt Angel assists in the presentation and answers questions. Clarifies health insurance reconciliation plans for employees to repay over first two months, pending board decision. Explains deficit reduction efforts: aggressive cuts reduced $5.1M to projected $1.9M year-end, including $868K school care assessment; adds back costs for substitutes ($250K), special ed contractors, supplies ($80K), unforeseen ($500K) due to daily surprise invoices. Describes accounting errors like unrecorded retiree health ($300K annually), potential school lunch under-budgeting ($300K+ deficit), grant expenditures charged to closed grants. Details cash flow: March difficult, April RAN payoff, June teacher pay critical, no collateral post-adequacy for future RANs, hard wall at June 30 for debt. Notes reserves depleted (~$30K left, city-funded), prior BA on unpaid leave pending termination hearing. On grants: poor tracking led to rejections for non-compliance (e.g., improper use, documentation); budgeted as offsetting revenue but defaults to general fund/taxpayer dollars when denied. Affirms policies from school board association exist but some watered down; board updating for robustness. Estimates ongoing surprises for 1-2 years, emphasizes building strong FY27 budget.
HB292 2025-2978s: Unidentified Committee Member Information Only00:43:51.920 - 12:39:52 PM; Asks about health insurance reconciliation for underpaying employees.
HB292 2025-2978s: Unidentified Committee Member Information Only00:45:00.720 - 12:41:01 PM; Questions deficit math: $5M problem, $4M from 40 layoffs, other savings, yet $2M remains; seeks clarification on operations and add-backs.
HB292 2025-2978s: Unidentified Committee Member Information Only00:47:10.960 - 12:43:11 PM; Inquires if accounting errors favored the district (incompetence) or against it (malfeasance).
HB292 2025-2978s: Unidentified Committee Member Information Only00:49:20.319 - 12:45:21 PM; Asks about Claremont's annual adequacy funding.
HB292 2025-2978s: Unidentified Committee Member Information Only00:50:16.240 - 12:46:17 PM; Clarifies on forensic audit timing and plans; asks if amendment terms (75% cap, state treasurer interest) suffice for recovery and quality education.
HB292 2025-2978s: Unidentified Committee Member Information Only00:51:58.800 - 12:47:59 PM; Inquires how long current cash will last, noting winter fuel needs and April criticality.
HB292 2025-2978s: Unidentified Committee Member Information Only00:53:03.599 - 12:49:04 PM; Expresses sympathy; asks RAN interest rate (2%) and concerns for future RAN availability due to no collateral post-adequacy and fiscal year debt limits.
HB292 2025-2978s: Unidentified Committee Member Information Only00:55:08.880 - 12:51:09 PM; Echoes sympathy; questions general ledger non-reconciliation equating to basic accounting failure like not balancing a checkbook.
HB292 2025-2978s: Unidentified Committee Member Information Only00:58:05.839 - 12:54:06 PM; Notes issues spanned years post-FY22 surplus; questions how hidden from board, liability of involved parties.
HB292 2025-2978s: Unidentified Committee Member Information Only00:59:45.839 - 12:55:46 PM; Follow-up on administrations involved, board stability and responsibility vs. trust in hires.
HB292 2025-2978s: Representative Cole Information Only01:01:37.200 - 12:57:38 PM; Notes prior BA from his district left surplus; asks about expendable trust funds, contingency allowance (2-12%) usage.
HB292 2025-2978s: Unidentified Committee Member Information Only01:03:41.200 - 12:59:42 PM; Asks if prior BA still on payroll and reason not terminated for cause.
HB292 2025-2978s: Representative Kofalt Information Only01:04:47.680 - 1:00:48 PM; Raises concern on school board financial acumen; suggests state authority (DOE/DRA) for inspections to prevent recurrence, if earlier intervention could have mitigated.
HB292 2025-2978s: Representative Lad Information Only01:07:46.640 - 1:03:47 PM; Notes reserve depletion concern (e.g., rolling stock, maintenance); asks about checks/balances for reserve use in city vs. towns.
HB292 2025-2978s: Representative Colcom Information Only01:10:39.520 - 1:06:40 PM; Questions treasurer's role in reconciliations and where they were during problems.
HB292 2025-2978s: Senator Abbas Information Only01:11:53.920 - 1:07:54 PM; Asks why grant money budgeted despite known non-compliance/rejection; follow-ups on belief in receipt, grant mechanics, timing of rejections after expenditures.
HB292 2025-2978s: Representative Brown Information Only01:17:34.960 - 1:13:35 PM; Comments that board unaware claim inconsistent with audit warnings (state reporting violations, credit card purchases without orders, bidding failures); notes irregular finance meetings but oversight responsibility local.
HB292 2025-2978s: Unidentified Committee Member Information Only01:20:51.679 - 1:16:52 PM; Asks best guess on progress understanding problem extent and timeline for full grasp.
HB292 2025-2978s: Representative Phelis Information Only01:22:01.600 - 1:18:02 PM; Inquires if district has budgeting/accounting procedures manual from school board association, suggesting all districts need one.
HB292 2025-2978s: Representative Ralph Bombill Oppose01:24:13.920 - 1:20:14 PM; Recommends no on amendment; warns of precedent for state loans (e.g., Concord $5M short, past Litchfield $1.5M issue resolved locally via funds management, trust depletion). Notes March election for warrant article possible; Claremont as city should handle internally, not set precedent.
HB292 2025-2978s: Representative John Cludier Support01:26:18.080 - 1:22:19 PM; Supports amendment to HB 292; commends Senator Ward's action amid rough months in Claremont (native, substitute teacher). Notes tough decisions like closing Bluff School, dedicated staff; clarifies not giveaway but repayable loan. Urges passage to keep schools open, reopen next fall; calls for audit/forensic to determine causes (incompetence or negligence), accountability. Offers to work on version like Rep. Lad's.
HB292 2025-2978s: Megan Tuttle, President of NEA New Hampshire Support01:29:29.520 - 1:25:30 PM; Megan Tuttle testified in strong support of the amendment to HB 292, emphasizing its role in providing financial certainty to the Claremont school community amid a challenging school year start. She highlighted the dedication of educators from the Sugar River Education Association, Claremont Association of Secretaries, and Association of Maintenance and Custodial Employees, representing 16,000 educators statewide. Tuttle shared stories of community support, including donations and collaboration during the transition from the closed Bluff Elementary School to Maple Avenue and Stevens Elementary Schools. She quoted Tammy Yates, president of the Sugar River Education Association, praising the community's efforts to minimize impacts on students. Tuttle urged the committee to recommend Ought to Pass on the amendment, stressing the need for stable school funding to ensure quality public education and prevent future crises.
HB292 2025-2978s: Carrie Kenny, from SEIU (Service Employees International Union) Support01:32:44.159 - 1:28:45 PM; Carrie Kenny briefly testified in support of the amendment, humbly requesting approval to aid students, families, and staff in Claremont. She expressed pride in the community's resilience after only a few months in her role and emphasized the collective efforts to support education despite school closures. Kenny noted the community's stepping up and stressed that no one wants a failing school system, appreciating prior comments and seeking any support possible.
HB292 2025-2978s: David Trumbull, from Town of Warner Support01:34:14.320 - 1:30:15 PM; David Trumbull supported the intent of HB 292 to provide cash flow for Claremont schools but criticized it as not a real or lasting solution. Drawing from his time campaigning in Claremont and attending local events, he described the community as strong and resilient but opposed to handouts. He argued the state owes Claremont at least $4.6 million more annually per constitutional requirements, citing the Conval Supreme Court decision and potential funding from HB 550 or HB 651. Trumbull warned the bill perpetuates underfunding, burdens future students with larger classes and reduced programs due to lost educators, and ignores the state's role in the crisis alongside local mismanagement. He called for fulfilling constitutional duties to adequately fund schools, noting Claremont's limited property tax base and the inevitability of shortfalls under current state funding at only 20% versus 50% nationally.
HB292 2025-2978s: Monica Mapelli, State Treasurer Information Only01:38:49.520 - 1:34:50 PM; Monica Mapelli provided details on the revolving loan fund mechanics under the amendment. She explained that funds would be advanced as needed by the district, calculated as adequacy aid with interest based on municipal market data yields as a proxy for the state's borrowing rate. Repayments would subtract principal and interest from owed aid distributions. Mapelli noted discussions with the Department of Education would finalize details, and the fund would allow borrowing against future adequacy aid to manage cash flow, particularly bridging from April to the next school year.
HB292 2025-2978s: Representative Fellows Information Only01:40:42.159 - 1:36:43 PM; Representative Fellows questioned the revolving fund's operations, seeking step-by-step explanations of money inflows and outflows, especially for the current year with remaining adequacy aid payments in January and April totaling about $4 million each. She inquired about available funds for borrowing in December, potential immediate repayments upon January distributions, and the total accessible amount, emphasizing the need for clarity on draws against this year's $18 million or next year's aid.
HB292 2025-2978s: Mark McNeill, Bureau of School Finance Information Only01:42:41.119 - 1:38:42 PM; Mark McNeill clarified that loan amounts would be based on Claremont's needs, up to 75% of adequacy aid as per the amendment, involving agreement from the treasurer, Department of Education, and district. He described a pay-as-you-go system where draws could match upcoming payments like $4 million before January 1st, repaid from that aid. For this year, with two payments left, he anticipated no immediate needs beyond April, focusing the fund on bridging to next year's payments from May to September, with amounts determined through discussions to minimize interest.
HB292 2025-2978s: Senator Ward Information Only02:39:33.200 - 2:35:34 PM; Senator Ward announces that the Senate Education Committee is coming out of recess and, based on the information learned and discussions held, they have decided not to go into executive session today. Instead, they will reflect on the day's input and schedule an executive session for a later date, with notification to follow.
HB292 2025-2978s: Unidentified Participant Information Only02:39:33.200 - 2:35:34 PM; The unidentified participant thanks Senator Ward for the opportunity to hear from various people and asks for a timeline on the upcoming executive session, expressing concern about whether it will happen before January.
HB292 2025-2978s: Senator Ward Information Only02:39:33.200 - 2:35:34 PM; Senator Ward responds that Aaron will contact everyone to find a suitable day for the executive session and confirms it will occur before January. He also notes that the bill is subject to the same room referral deadlines as other bills.
HB292 2025-2978s: Unidentified Participant Information Only02:40:31.600 - 2:36:32 PM; The unidentified participant expresses relief and thanks Senator Ward for the clarification on the timeline.

Ward, Ruth(Chairman)(R)[C+]2024	Sullivan, Victoria(V Chairman)(R)	Prentiss, Suzanne(D)[F]2024
Altschiller, Debra(D)[CT]2024	Abbas, Daryl(R)[C+]2024