Committee Summary for Senate Education Finance (02/12/2026)

Bill/Time	Type	Title	Sponsor
HB121 00:04:05.599 - 8:02:51 AM	Public Hearing	(New Title) relative to school district financial requirements and district probation processes.	Cordelli, Glenn(R)[B+]2025
HB121 00:29:46.080 - 8:28:32 AM	Public Hearing	(New Title) relative to school district financial requirements and district probation processes.	Cordelli, Glenn(R)[B+]2025
HB366 00:41:52.319 - 8:40:38 AM	Public Hearing	(New Title) modifying the priority of applications for school building aid grants.	Cahill, Michael(D)[CT]2025
HB564 00:50:02.880 - 8:48:48 AM	Public Hearing	relative to the adoption of school administrative unit budgets.	Vose, Michael(R)[A-]2025
HB656 00:56:57.200 - 8:55:43 AM	Public Hearing	relative to the authority of local school districts to accept federal grants.	Peternel, Katy(R)[A]2025
SB581 01:17:08.880 - 9:15:54 AM	Executive Session	modifying education freedom account (EFA) eligibility and removing priority guidelines and the enrollment cap relative to EFA eligibility.	Sullivan, Victoria(R)[A-]2025
SB513 01:18:16.719 - 9:17:02 AM	Executive Session	requiring schools to engage an owner's project manager for construction of school building aid projects at the time of application.	Abbas, Daryl(R)[B-]2025
HB366 01:22:00.560 - 9:20:46 AM	Executive Session	(New Title) modifying the priority of applications for school building aid grants.	Cahill, Michael(D)[CT]2025

HB121: Representative Kristen Noble, District 2, Bedford Information Only00:04:05.599 - 8:02:51 AM; Representative Noble introduced HB 121, explaining it as a non-germane amendment in response to the Claremont budget situation. She highlighted key provisions: requiring school district audits within one year of fiscal year-end, posting audits online and reviewing at public meetings, fining up to $500 per day for delays via DRRA, mandating independent certified auditors, allowing DOE to withhold state aid after 6 months delay with just cause, and applying probation criteria to traditional public schools similar to charter schools for financial mismanagement. She noted input from DRRA and DOE, a corrected cross-reference in statute, and that she was not the primary drafter.
HB121: Senator Ruth Ward Information Only00:08:18.720 - 8:07:04 AM; Senator Ward questioned the definition of 'competent independent public accountant' on page four, suggesting reference to RSA 309B for qualifications.
HB121: Senator Cars (likely Carson) Information Only00:09:11.760 - 8:07:57 AM; Senator Cars suggested amending the language to require the independent auditor to be licensed by the State of New Hampshire and in good standing, referencing issues in Claremont with the business manager's standing. Representative Noble agreed, noting school boards would need to perform due diligence.
HB121: Mark Manganella, Bureau of School Finance, Department of Education Support00:10:23.519 - 8:09:09 AM; Mark Manganella supported aspects of HB 121, stating it advances school financial accountability. He praised requiring licensed independent audits, posting and reviewing audits publicly, authorizing DRRA to order forensic audits with DOE consultation, clarifying fines, and the 18-month audit standard with potential aid withholding. He noted 55% of districts complete audits within 12 months. For probation, he recommended consulting the State Board of Education to avoid overwhelming the system. He requested resources: three positions for collecting, analyzing audits, monitoring at-risk districts, building remedial plans, and providing preventative training for business administrators, especially new ones transitioning from private sector. He emphasized balancing regulation with support to prevent crises like Claremont, which harmed students through enrollment declines and disruptions. During Q&A, he addressed why towns can't always help (relies on generosity), the need for industry-specific knowledge despite skills, lack of required certification (ended 2023), the role of associations for training but need for one-on-one mentoring, and ramifications for delaying audit documents via the 18-month deadline and potential adverse opinions or aid withholding. He clarified past certification in Claremont and discussed trade-offs of withholding aid impacting cash flow but preventing worse student harm.
HB121: Senator Carson Information Only00:16:44.160 - 8:15:30 AM; Senator Carson questioned why struggling school business administrators can't get help from town administrators instead of new DOE bureaucracy, the hiring of unqualified candidates, the role of the association of school business officials for training, ramifications for districts slow-walking audit documents, and whether DOE should withhold funding for refusals. He followed up on certification and industry knowledge gaps.
HB121: Senator Rosen Information Only00:25:18.000 - 8:24:04 AM; Senator Rosen questioned the business administrator's certification in Claremont (noting it ended in 2023), the impact of withholding 30% state funding on students, and DOE's bandwidth given the ongoing massive special education oversight audit (1.5 years late, 71 issues, 800 pages).
HB121: Mr. Mangello, Department of Education Support00:29:46.080 - 8:28:32 AM; Mr. Mangello discusses the need for three new positions to enhance school financial oversight, suggesting flexibility with effective dates to aid implementation. He emphasizes that these positions would provide bandwidth to oversee special education and hold districts accountable for audits, strengthening the financial accountability system. He estimates costs at 534K for FY27 and 461K for the next year, including salaries for qualified individuals experienced in school finance and contract expenditures for systems to analyze audits. He notes full-time employees are required. Addressing concerns about districts like Claremont being years behind on audits, he reveals 25% of districts are over 18 months late, with six closing FY25 in deficit, including Farmington, Pittsfield, Mascoma Valley, and Unity. He highlights common mistakes and the need for support, expressing concern over outdated or disclaimed audits indicating potentially worse problems. On consolidation, he supports SAU consolidation to mitigate risks through better segregation of duties and stronger business offices, but defers specifics on county-level solutions to ongoing explorations. Regarding the bill's scope on page four, he refers questions on probationary periods and state board authority to the state board itself. On business administrator certification, he notes it ended as there was no statutory requirement.
HB121: Representative Michael Cahill, Newmarket and Newfields Support00:39:02.240 - 8:37:48 AM; Representative Cahill, compelled by prior testimony, stresses the importance of listening to agency experts who understand operational challenges. He advocates for funding positions to improve outcomes and references a recent finance division discussion on aiding Claremont, which suffered from a moratorium on school building aid despite high property taxes and poverty (60% district). He shares a personal anecdote about losing a capable business administrator in Newmarket and the challenges for the new hire, emphasizing the need for more support and training to prevent crises. He praises the detailed testimony on doing things right from the start.
HB366: Representative Michael Cahill, Newmarket Oppose00:41:52.319 - 8:40:38 AM; As the original sponsor, Representative Cahill opposes the gutted version of HB 366, which he says does nothing but rearrange priorities on the building aid ranking list. He criticizes the lack of funding for the program, the shift to 80% upfront payments straining resources, and the ongoing moratorium leaving districts like Newmarket with aging infrastructure (1925 building) unable to secure aid. He proposes increasing the annual spend from $50M maximum to $60M minimum, with half for new projects and half for retroactive payments to districts that proceeded during the moratorium, such as Claremont with leaking roofs and old furnaces. He refutes claims of poor maintenance, attributing issues to the 2008 recession and budget shortfalls, and calls for a study commission to fulfill obligations to families for modern schools. He highlights inequities compared to funding for personnel raises, alternatives, charters, and EFAs, and shares Newmarket's $39M need, seeking $5M in aid. He urges rejecting the current form, noting his unsuccessful attempts to meet with the governor and lack of advocacy support.
HB366: Unidentified Senator Information Only00:48:57.280 - 8:47:43 AM; The senator questions Representative Cahill on page two, lines 20-22 of the amended bill, which strikes priority for schools with critical needs and substantial deficiencies, potentially removing prioritization for safety issues. Cahill confirms the interpretation is correct.
HB564: Representative Michael Bose, Rockingham District 5 Support00:50:02.880 - 8:48:48 AM; Representative Bose introduces HB 564, which requires SAUs to separate budgetary needs into distinct warrant articles for administrative costs versus educational costs, enhancing voter transparency on spending distinctions. He notes the bill's length due to implementation provisions, with complexities for multi-district SAUs but simplifications for single-district ones. Responding to concerns about added reporting burdens, he frames it as a philosophical issue but emphasizes transparency benefits, as SAUs already track the data but blend it, forcing parents and budget committees to sift through spreadsheets. He argues it eases voter understanding without extra work.
HB564: Senator Altschiller Information Only00:51:57.359 - 8:50:43 AM; Senator Altschiller raises concerns from a recent school board meeting about legislative reporting requirements burdening schools with administrative work amid segmented teaching schedules and new mandates like cursive. She asks about balancing regulations to cap burdens without increasing costs or relying on volunteers.
HB656: Representative Katie Pernell, Wolfeboro and Tuftonboro Support00:56:57.200 - 8:55:43 AM; Representative Pernell introduces HB 656 as a transparency measure requiring school boards to hold noticed hearings for anticipated federal grants, summarizing obligations in notices and minutes so taxpayers understand attached conditions. She references examples like Project AWARE, STOP, and targeted violence prevention grants from DOJ, Education, and Homeland Security. The bill, vetted by the department, avoids obstructing fund flows. Addressing mandate concerns, she notes communication with her school board and superintendent, offering to repeal burdensome rules but prioritizing taxpayer awareness. She agrees with adding requirements for superintendent notifications to boards on grant applications and website postings of received grants to facilitate community discussions, emphasizing starting conversations even if not all engage.
HB656: Senator Carson Information Only00:59:08.559 - 8:57:54 AM; Senator Carson questions whether the bill should require superintendents to notify school boards publicly when applying for grants, given instances of undisclosed applications, to enable discussions on flexible spending. He follows up on a prior bill requiring municipal website notifications for state funds, suggesting similar for schools to inform citizens and spark dialogue.
HB656: Senator Rosenwald Information Only01:04:29.839 - 9:03:15 AM; Senator Rosenwald supports information if used but notes many grants are accepted by executive agencies like DOJ and Education, questioning local districts' control and whether implied rejection of grants due to obligations is feasible since districts may not decide.
HB656: Unidentified Representative Support01:05:16.000 - 9:04:02 AM; The representative discusses how school districts apply for grants independently and emphasizes the need for transparency on all federal grants, including those distributed through executive branch agencies like funding for safer drinking water in schools. They highlight community conversations about federal overreach and introduce an upcoming knowledgeable speaker.
HB656: Senator Roer Information Only01:06:01.359 - 9:04:47 AM; Senator Roer questions whether the bill is duplicative, noting that school budgets already include line items for grants like Title I, IDEA, and others, which are presented in budget meetings, deliberative sessions, and on SAU websites. They suggest the information is already accessible to the public.
HB656: Unidentified Representative (response) Support01:07:12.240 - 9:05:58 AM; Responding to Senator Roer, the representative clarifies that while basic grant information is disclosed, the bill targets additional grants not detailed in summaries. They explain that unanticipated funds would be delineated until approved by the school board, without stopping the flow of funds, and defer technical details to the Department of Education.
HB656: Amarie Banfield, Parent Advocate Support01:10:21.199 - 9:09:07 AM; Amarie Banfield supports HB 656 for promoting fiscal transparency and accountability in education funding. She argues that disclosing all funds, especially unanticipated ones, ensures public awareness and scrutiny, preventing misuse or hidden obligations. She cites the Seabrook School Board's experience with federal grants and examples like Nellie Mae Foundation grants funded by the Gates Foundation, which impose specific pedagogical models, potentially undermining local control and instructional autonomy. She stresses that transparency safeguards democratic accountability without burdening administration.
HB656: Mark McNeil, Bureau of School Finance, Department of Education Information Only01:16:07.760 - 9:14:53 AM; Mark McNeil provides a technical review of HB 656, stating that issues from the previous session regarding co-mingling of anticipated and unanticipated funds have been resolved. He sees no technical issues in categorizing funds as proposed.
SB581: Committee Chair Vote01:17:08.880 - 9:15:54 AM; The committee moves for interim study on SB 581 to repeal the capital budget cap and EFAS. The motion is seconded and passes unanimously on consent calendar.
SB513: Committee Chair Vote01:18:16.719 - 9:17:02 AM; The committee moves to pass SB 513, which requires engaging a project manager before applying for school building aid grants over $1.25 million. Discussion includes fiscal notes estimating $150,000-$200,000 costs, potential taxpayer expenses for districts not awarded aid, and the benefits of early accurate cost estimates versus risks of retainer fees if grants are denied. The motion passes 3-2.
SB513: Unidentified Senator Oppose01:19:03.280 - 9:17:49 AM; The senator opposes the motion due to the fiscal note costs and unanswered questions about districts spending taxpayer money on applications without guaranteed aid.
SB513: Unidentified Senator (support) Support01:19:50.719 - 9:18:36 AM; The senator supports the bill, explaining it shifts the project manager requirement from acceptance to application stage for better cost estimates, emphasizing the importance of solid numbers in building projects.
SB513: Senator Riller Oppose01:20:48.239 - 9:19:34 AM; Senator Riller opposes, noting school committees' concerns about the time gap between application and acceptance, leading to costly retainers for project managers on uncertain grants, especially with fluctuating funding availability.
HB366: Committee Chair Vote01:22:00.560 - 9:20:46 AM; The committee moves for Inexpedient to Legislate (ITL) on HB 366, as requested by the sponsor. The motion passes on consent calendar.