The Senate Education Committee passed a Republican proposal to create a School District Adequacy Revolving Loan Fund, extending a financial lifeline to the troubled Claremont School District in exchange for new accountability measures and expanded school-choice options, NH Journal reports. Both committee Democrats voted against the plan.
As NH Journal explains, the dispute came down to the strings attached.
With Claremont schools struggling to survive a $5 million budget meltdown, Senate Democrats voted against a GOP proposal that would extend the district a financial lifeline but require new accountability measures and expanded school-choice options in return.
NH Journal
Democrats preferred a simpler, lower-cost loan, the report notes.
Sens. Suzanne Prentiss (D-Lebanon) and Debra Altschiller (D-Stratham) wanted a simple bill that extended the loans with few restrictions and a subsidized interest rate.
NH Journal
Committee chair Sen. Ruth Ward said her priority throughout was Claremont’s students.
“When we first learned of the gross financial mismanagement that has put the Claremont School District in such peril, my top priority has been to ensure that all Claremont students would be able to finish the school year at the school of their choice,” said committee chair Sen. Ruth Ward (R-Stoddard).
NH Journal
Ward described the compromise as a way to ease the cash crunch while protecting taxpayers, NH Journal reports.
“The changes we adopted today create the opportunity for Claremont to access state adequacy funds early, helping to alleviate the district’s severe cash-flow challenges, while ensuring accountability and without any risk to New Hampshire taxpayers.”
NH Journal
Under the plan, distressed districts could borrow against future state aid.
Under the plan, any school district in financial distress will be able to seek loans from the state worth up to 75 percent of the district’s anticipated adequacy aid grants.
NH Journal
The committee vote reflected a broader disagreement over how much accountability should come attached to state help, with Republicans insisting on reforms and Democrats favoring a simpler loan, NH Journal reports. The amended bill that advanced was the product of negotiations between House and Senate Republicans.
The proposal would let financially distressed districts borrow against their state adequacy payments, giving Claremont access to cash as it works to stabilize its finances, NH Journal reports. Ward framed the compromise as a way to give the district short-term breathing room while protecting taxpayers from any added risk, setting up further debate as the rescue plan moves forward.
The committee vote reflected a broader disagreement over how much accountability should come attached to state help, with Republicans insisting on reforms and expanded school-choice options while Democrats favored a simpler loan, NH Journal reports. Both committee Democrats voted against the GOP version.
Under the plan, any district in financial distress could borrow up to 75 percent of its anticipated adequacy aid, giving Claremont access to cash as it works to stabilize its finances, according to NH Journal. Ward described the amended bill, a compromise between House and Senate Republicans, as a way to give the district short-term breathing room while protecting taxpayers from added risk.
Read the full story at NH Journal.
