Concord – In a revival of school funding arguments yesterday, the notion of requiring school attendance until age 18 got bogged down in a debate over state funding.

Gov. John Lynch is a vocal supporter of the bill. He testified before a Senate committee that the state needs to change a law that set mandatory attendance at age 16 a century ago, when the state and world economy were far different.

He noted that finding ways to keep students in school until they earn a diploma will benefit the entire state. Four of five prison inmates are dropouts, he said, and dropouts are “twice as likely to be on welfare. Rates of teen pregnancy, substance abuse and crime are significantly higher among dropouts.”

He said traditional classrooms won’t work for all those who will be compelled to remain in school. He said districts need to be “flexible with the option offered young people.” The bill, SB 268, would not make the change in compulsory attendance until the 2008-09 school year.

But Londonderry School Superintendent Nathan Greenberg said the state needs to commit money to alternative programs, many of which his district already has in place. He said the idea of offering an array of options sounds good, but will be hard to attain.

“There are not enough beds to address the substance abuse problems. We run into difficulties finding places for kids to do apprenticeships, internships,” he said. ‘Without a commitment to develop these capacities to make a financial commitment to address these issues, we will run up against a brick wall.”

Despite a wide array of alternative programs, Londonderry sees 2 percent of students drop out each year.

Mark Joyce, executive director of the New Hampshire School Administrators Association, said the state has to assume some of the cost involved in stepping up local requirements.

“Wishing something does not make it happen. We need to identify the resources to plan and fund this program,” he said.

Sen. Iris Estabrook, D-Durham, a prime sponsor of the bill, said the bill’s strength is that it includes a waiver system where students and school officials can agree on an alternate plan, whether it involved night courses, apprenticeships or other non-traditional education.

Sen. Richard Green, R-Rochester, also a prime sponsor, said he voted against a bill changing the school age last year because it did not include programs for students who would be forced to stay in school longer.

“I do not want children sitting in classrooms who do not want to be there, who will be disruptive to their teachers and their classmates,” he said.

Sen. Robert Odell, R-Lempster, agreed the challenge is tough, but added, “We’ve got to be innovative. We’ve got to be bold.”

Former executive councilor David Wheeler, speaking for the state’s Christian Home Educators association, opposed the bill, saying it represents an intrusion on parents’ ability to direct their children’s education.

The New Hampshire School Boards Association backs the plan.

Several business groups also support the bill, including the Business and Industry Association and several chambers of commerce.

“It will dramatically reduce the drop-out rate and generate a workforce capable of responding to the needs of the state,” Greater Manchester chamber vice president Chris Williams said.