CONCORD — Without additional state money, the State Board of Education has been advised to deny all charter schools applications, the House Education Committee was told Wednesday.

The committee met Wednesday with representatives of the Attorney General's Office to discuss the reasons behind the board's September action to deny all pending and future applications for new charter schools.

The committee decided to write the state board expressing its concerns and urging members to continue approving new charter schools.

Several committee members, House Speaker William O'Brien, R-Mont Vernon, and representatives of the charter school community say the applications did not have to be denied and plans put on hold, because there was a solution. The Department of Education has not sought to use it, the group said.

Associate Attorney General Anne Edwards told the committee lawmakers capped state aid for charter school tuition in the two-year budget approved in 2011. Prior to that change, she said, state funding for charter schools was open ended.

She said her office advised the board they needed to deny pending applications because there is no funding for additional schools at this time. The state board cannot approve new charter schools, Edwards said, that would obligate the state to spend additional money without a change in the law or the legislature approving more money for charter schools.

The new budget law allows the Department of Education to request additional funding with the approval of the Joint Legislative Fiscal Committee and Governor and Executive Council, but the agency has not yet made a request for an additional $5 million needed this fiscal year for state aid to charter schools.

The current fiscal budget allows $10.2 million to be spent on charter school aid, while $14.6 million is needed, according to Tom Raffio, chair of the State Board of Education.

The 17 charter schools currently operating would require approximately $16.7 million for the 2014 fiscal year, he said, and $25.6 million would be needed for all the charter schools in the application pipeline.

Edwards said the request for additional funding for this fiscal year to cover the current obligation — about $5 million — would be made to the fiscal committee this month.

Matt Southerton, director for the NH Center for Innovative Schools, noted the Department of Education has yet to make that request. He said the board had the fix for the problem but has not used it.

“It's strange the department has never (asked for additional money),” Southerton said. “Instead they ran to the AG and said 'How do we stop the process?'”

He said other discussion about needing additional money doesn't matter because it takes nine months to a year from the time an application is approved to a new charter school opening.

And he said there is only enough federal start-up money for three to five new charter schools a year.

“I believe there is a lot more going on besides funding,” Southerton said after the committee hearing.

O'Brien agreed, saying “the agenda is one where charter schools aren't being favored by certain elements within the education community.”

Raffio said later Wednesday if the new legislature approves additional money for new charter schools, then the board would approve new charter schools if all other criteria are met.

Legislative approval for additional money could come as early as January or as late as July, he noted.

Edwards told the committee another state law prohibits the state board from spending any money beyond what the legislature budgets. If additional money is spent, board members and Department of Education officials “shall be held personally liable for the amount of the excess expended, contract or bargained above the appropriation.”

Some lawmakers believe the board could conditionally approve the charter schools to keep the planning process going, but Edwards warned against that. She said based on recent Supreme Court decisions, conditional approval is viewed as a contract with the state with financial obligations and that could result in litigation.

Education Committee Chair Rep. Michael Balboni, R-Nashua, asked Edwards if the board could deny an application on only the funding criteria and she said “with respect to the funding source issue, yes the state board may review just that one criteria and may issue a decision on it.”

The committee decided to send a letter to the board expressing its concerns and urging board members to continue approving new charter schools that meet the established criteria.

grayno@unionleader.com