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art.012/4/012/3/012/2/012/1

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ARTICLE 12 AS AMENDED

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RELATING TO EDUCATION AID

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     SECTION 1. Section 16-2-9.4 of the General Laws in Chapter 16-2 entitled "School

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Committees and Superintendents" is hereby amended to read as follows:

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     16-2-9.4. School district accounting compliance. -- (a) The office of auditor general

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and the department of elementary and secondary education shall promulgate a uniform system of

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accounting, including a chart of accounts based on the recommendations of the advisory council

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on school finance, and require all accounts of the school districts, regional school districts, state

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schools and charter schools to be kept in accordance therewith; provided, that in any case in

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which the uniform system of accounting is not practicable, the office of auditor general in

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conjunction with the department of elementary and secondary education shall determine the

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manner in which the accounts shall be kept. The uniform system of accounting shall also include

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a standardized budget process to ensure districts can annually assess investment priorities and

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incorporate long range planning.

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      (b) For the purpose of securing a uniform system of accounting and a chart of accounts

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the advisory council on school finances, as defined in section 16-2-9.2 may make such surveys of

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the operation of any school districts, regional school district, state school or charter school as they

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shall deem necessary.

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     (c) Upon completion of the implementation of the uniform chart of accounts, all the

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school districts, regional school districts, state schools, and/or charter schools, shall implement a

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regents-approved budget model, and use best practices established by the department of education

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for long range planning, budget development, and budget administration and reporting.

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      (c)(d) If any school district, regional school district, state school or charter school fails to

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install and maintain the uniform system of accounting, including a chart of accounts and

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approved budget model, or fails to keep its accounts and interdepartmental records, or refuses or

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neglects to make the reports and to furnish the information in accordance with the method

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prescribed by the office of auditor general and the department of education or hinders or prevents

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the examination of accounts and financial records, the auditor general and the commissioner of

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education and/or their respective designee(s) shall may make a report to the superintendent of

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schools of the local education agency, the school committee chairperson, the mayor or town

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manager, and the president of the town council, and/or for a charter school, to the board of

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trustees or directors, as applicable, the board of regents for elementary and secondary education

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in writing, specifying the nature and extent of the failure, refusal, neglect, hindrance, or

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prevention, and the board of regents commissioner is hereby authorized and directed to review

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the matter so reported. If the regents commissioner shall find that failure, refusal, neglect,

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hindrance, or prevention exists and that the school district, regional school district, state school or

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charter school should properly comply in the matter so reported, the regents commissioner shall

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direct the school district, regional school district, state school or charter school, in writing, to so

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comply. If the failure, refusal, neglect, hindrance, or prevention shall continue for a period of ten

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(10) days following the written direction, the regents commissioner may withhold distribution of

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state aid to said school district, regional school district, state school or charter school.

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     (e) The department of elementary and secondary education in consultation with the

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division of municipal finance shall conduct periodic reviews and analysis of school revenues and

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expenses. The department shall also review and monitor compliance with the approved budget

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model and best practices. The department shall identify those local education agencies considered

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to be at risk of a year-end deficit or a structural deficit that could impact future years. Such

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potential deficits shall be identified based on the periodic reviews, which may also include on-site

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visits and reporting in accordance with the provisions of section 45-12-22.2. Potential deficits

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shall be reported to the office of municipal finance, office of auditor general, superintendent,

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chairman of the school committee, mayor or town manager, and the president of the town council,

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of the applicable school district, regional school district, or state school, and/or for a charter

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school, to the board of trustees or directors, as applicable.

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     16-2-34. Central Falls School District board of trustees. -- (a) There is hereby

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established a seven (7) member board of trustees, which shall govern the Central Falls School

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District. With the exception of those powers and duties reserved by the commissioner of

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elementary and secondary education, and the board of regents for elementary and secondary

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education, the board of trustees shall have the powers and duties of school committees.

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Notwithstanding any provision of law to the contrary, the commissioner of elementary and

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secondary education, as the executive agent of the board of regents for elementary and secondary

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education, is authorized to exercise in whole or in part care, control, and management over the

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public schools of the Central Falls school district within the scope of authority of the board of

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trustees and board of regents, whenever the commissioner deems such intervention to be

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necessary and appropriate.

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      (b) The board of regents for elementary and secondary education shall appoint the

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members of the board of trustees from nominations made by the commissioner of elementary and

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secondary education. The chairperson shall also be selected in this manner. The board of regents

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shall determine the number, qualifications, and terms of office of members of the board of

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trustees, provided however, that at least four (4) of the members shall be residents of the city and

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parents of current or former Central Falls public school students. The remaining three (3) shall be

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appointed at large.

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      (c) The board of regents shall provide parameters for overall budget requests, approve

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the budget, and otherwise participate in budget development.

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      (d) The commissioner of elementary and secondary education shall recommend

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parameters for overall budget requests, recommend a budget, and otherwise participate in budget

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development.

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      (e) The commissioner shall approve the process for selection of the superintendent.

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      (f) The board of trustees shall meet monthly and serve without compensation. The board

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of trustees shall have broad policy making authority for the operation of the school, as well as the

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following powers and duties:

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      (1) To identify the educational needs of the district;

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      (2) To develop educational policies to meet the needs of students in the school district;

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      (3) To appoint a superintendent to serve as its chief executive officer and to approve

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assistant and associate superintendents from nominations made by the superintendent;

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      (4) To provide policy guidance and otherwise participate in budget development; and

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      (5) To develop staffing policies which ensure that all students are taught by educators of

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the highest possible quality.

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      (g) The superintendent shall serve at the pleasure of the board of trustees with the initial

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appointment to be for a period of not more than three (3) years; provided, however, that the terms

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and conditions of employment are subject to the approval of the board of regents for elementary

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and secondary education.

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      (h) It shall be the responsibility of the superintendent to manage and operate the school

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on a day-to-day basis. The superintendent's duties shall include the following:

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      (1) To be responsible for the care, supervision, and management of the schools;

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      (2) To recommend to the board of trustees educational policies to meet the needs of the

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district, and to implement policies established by the board of trustees;

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      (3) To present nominations to the board of trustees for assistant and associate

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superintendents and to appoint all other school personnel;

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      (4) To provide for the evaluation of all school district personnel;

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      (5) To establish a school based management approach for decision making for the

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operation of the school;

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      (6) To prepare a budget and otherwise participate in budget development as required,

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and to authorize purchases consistent with the adopted school district budget;

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      (7) To report to the board of trustees, on a regular basis, the financial condition and

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operation of the schools, and to report annually on the educational progress of the schools;

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      (8) To establish appropriate advisory committees as needed to provide guidance on new

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directions and feedback on the operation of the schools;

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      (9) With policy guidance from the board of trustees and extensive involvement of the

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administrators and faculty in the school, to annually prepare a budget. The board of trustees shall

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approve the budget and transmit it to the commissioner. The board of regents for elementary and

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secondary education, upon recommendation of the commissioner of elementary and secondary

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education, shall provide parameters for the overall budget request. Based on review and

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recommendation by the commissioner, the board of regents shall approve the total budget and

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incorporate it into its budget request to the governor and to the general assembly. Line item

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budgeting decisions shall be the responsibility of the superintendent; and

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      (10) To negotiate, along with the chairperson of the board of trustees and his or her

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appointed designee, all district employment contracts, which contracts shall be subject to the

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approval of the commissioner of elementary and secondary education with the concurrence of the

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board of regents.

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      (i) Nothing in this section shall be deemed to limit or otherwise interfere with the rights

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of teachers and other school employees to bargain collectively pursuant to chapters 9.3 and 9.4 of

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title 28 to exercise rights afforded under any statute including, but not limited to Title 16 or to

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allow the commissioner board of trustees or the superintendent to abrogate any agreement by

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collective bargaining.

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      (j) The appointment of the special state administrator for the Central Falls School

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District and the Central Falls School District Advisory Group, created by chapter 312 of the

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Rhode Island Public Laws of 1991, will no longer be in effect upon the selection and appointment

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of the board of trustees created in this section. All powers and duties of the special state

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administrator and the Central Falls School District Advisory Group are hereby transferred and

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assigned to the board of trustees created in this section, upon the selection and appointment of

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that board.

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     SECTION 2. Section 45-12-22.2 of the General Laws in Chapter 45-12 entitled

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"Indebtedness of Towns and Cities" is hereby amended to read as follows:

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     45-12-22.2. Monitoring of financial operations -- Corrective action. -- (a) The chief

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financial officer of each municipality and each school district within the state shall continuously

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monitor their financial operations by tracking actual versus budgeted revenue and expense.

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      (b) The chief financial officer of the municipality shall submit a report on a monthly

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basis to the municipality's chief executive officer, each member of the city or town council, and

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school district committee certifying the status of the municipal budget from all fund sources,

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including the school department budget from all fund sources, or regional school district budget

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from all fund sources. The chief financial officer of the municipality shall also submit a quarterly

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report on or before the 25th day of the month succeeding the end of each fiscal quarter to the

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division of municipal finance, the commissioner of education, and the auditor general certifying

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the status of the municipal budget, including the school budget that has been certified by the

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school department. Each quarterly report submitted must be signed by the chief executive officer,

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chief financial officer as well as the superintendent of the school district and chief financial

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officer for the school district. The report has to be submitted to the city/town council president

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and the school committee chair. It is encouraged, but not required, to have the council

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president/school committee chair sign the report. The chief financial officer of the school

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department or school district shall certify the status of the school district's budget and shall assist

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in the preparation of these reports. The monthly and quarterly reports shall be in a format

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prescribed by the division of municipal finance, the commissioner of education, and the state

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auditor general. The reports shall contain a statement as to whether any actual or projected

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shortfalls in budget line items are expected to result in a year-end deficit, the projected impact on

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year-end financial results including all accruals and encumbrances, and how the municipality and

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school district plans to address any such shortfalls. In the event that the school reporting is not

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provided, then state education aid may be withheld pursuant to the provisions of section 16-2-

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9.4(d).

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      (c) If any of the quarterly reports required under subsection (b) above project a year-end

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deficit, the chief financial officer of the municipality shall submit to the state division of

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municipal finance, the commissioner of education, and the auditor general a corrective action

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plan signed by the chief executive officer and chief financial officer on or before the last day of

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the month succeeding the close of the fiscal quarter, which provides for the avoidance of a year-

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end deficit or structural deficit that could impact future years, and the school superintendent shall

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also comply with the provisions of section 16-2-11(c) to assist in this effort. The plan may

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include recommendations as to whether an increase in property taxes and/or spending cuts should

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be adopted to eliminate the deficit. The plan shall include a legal opinion by municipal counsel

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that the proposed actions under the plan are permissible under federal, state, and local law. The

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state division of municipal affairs may rely on the written representations made by the

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municipality in the plan and will not be required to perform an audit.

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      (d) If the division of municipal finance concludes the plan required hereunder is

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insufficient and/or fails to adequately address the financial condition of the municipality, the

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division of municipal finance can elect to pursue the remedies identified in section 45-12-22.7.

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      (e) The reports required shall include the financial operations of any departments or

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funds of municipal government including the school department or the regional school district,

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notwithstanding the status of the entity as a separate legal body. This provision does not eliminate

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the additional requirements placed on local and regional school districts by sections 16-2-9(f) and

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16-3-11(e)(3).

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     SECTION 3. Section 16-7-39 of the General Laws in Chapter 16-7 entitled “Foundation

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Level School Support” is hereby amended to read as follows:

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     16-7-39. Computation of school housing aid ratio. -- For each community, the percent

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of state aid for school housing costs shall be computed in the following manner:

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     (1) The adjusted equalized weighted assessed valuation for the district is divided by the

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resident average daily membership for the district (grades twelve (12) and below); (2) the

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adjusted equalized weighted assessed valuation for the state is divided by the resident average

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daily membership for the state (grades twelve (12) and below); (1) is then divided by (2) and the

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resultant ratio is multiplied by a factor currently set at sixty-two percent (62%) which represents

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the approximate average district share of school support; the resulting product is then subtracted

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from one hundred percent (100%) to yield the housing aid share ratio, provided that in no case

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shall the ratio be less than thirty percent (30%). Provided, that effective July 1, 2010, and

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annually at the start of each fiscal year thereafter, the thirty percent (30%) floor on said housing

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aid share shall be increased by five percent (5%) increments each year until said floor on the

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housing aid share ratio reaches a minimum of not less than forty percent (40%). This provision

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shall apply only to school housing projects completed after June 30, 2010 that received approval

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from the board of regents prior to June 30, 2012. Provided further, for the fiscal year beginning

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July 1, 2012 and for subsequent fiscal years, the minimum housing aid share shall be thirty-five

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percent (35%) for all projects receiving board of regents approval after June 30, 2012. The

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resident average daily membership shall be determined in accordance with § 16-7-22(1).

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     SECTION 4. Section 16-7.2-6 of the General Laws in Chapter 35-4 entitled “The

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Education Equity and Property Tax Relief Act” is hereby amended to read as follows:

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     16-7.2-6. Categorical programs, state funded expenses. -- In addition to the foundation

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education aid provided pursuant to § 16-7.2-3 the permanent foundation education aid program

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shall provide direct state funding for:

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     (a) Excess costs associated with special education students. Excess costs are defined

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when an individual special education student's cost shall be deemed to be "extraordinary."

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Extraordinary costs are those educational costs that exceed the state approved threshold based on

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an amount above five times the core foundation amount (total of core instruction amount plus

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student success amount). The department of elementary and secondary education shall prorate the

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funds available for distribution among those eligible school districts if the total approved costs for

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which school districts are seeking reimbursement exceed the amount of funding appropriated in

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any fiscal year;

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     (b) Career and technical education costs to help meet initial investment requirements

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needed to transform existing or create new comprehensive career and technical education

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programs and career pathways in critical and emerging industries and to help offset the higher

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than average costs associated with facilities, equipment maintenance and repair, and supplies

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necessary for maintaining the quality of highly specialized programs that are a priority for the

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state. The department shall recommend criteria for the purpose of allocating any and all career

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and technical education funds as may be determined by the general assembly on an annual basis.

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The department of elementary and secondary education shall prorate the funds available for

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distribution among those eligible school districts if the total approved costs for which school

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districts are seeking reimbursement exceed the amount of funding available in any fiscal year;

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     (c) Programs to increase access to voluntary, free, high-quality pre-kindergarten

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programs. The department shall recommend criteria for the purpose of allocating any and all early

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childhood program funds as may be determined by the general assembly;

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     (d) Central Falls Stabilization Fund is established to assure that appropriate funding is

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available to support the community, including students from the community that attend the

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charter schools, Davies, and the Met Center pursuant to § 16-7.2-5, due to concerns regarding the

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city's capacity to meet the local share of education costs. This fund requires that education aid

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calculated pursuant to section 16-7.2-3 and funding for costs outside the permanent foundation

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education aid formula, including but not limited to transportation, facility maintenance, and

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retiree health benefits, that the difference between education aid calculated pursuant to § 16-7.2-3

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and education aid, as of the effective date of the formula, shall be shared between the state and

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the city of Central Falls. The state's share of the fund will be paid directly to the Central Falls

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school district upon verification that the city has transferred its share of the local contribution for

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education. The fund shall be annually reviewed to determine the amount of the state and city

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appropriation. The state's share of this fund may be supported through a reallocation of current

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state appropriations to the Central Falls school district. At the end of the transition period defined

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in § 16-7.2-7, the municipality will continue its contribution pursuant to § 16-7-24; and

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     (e) Excess costs associated with transporting students to out of district non-public schools

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and within regional school districts. (1) This fund will provide state funding for the costs

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associated with transporting students to out of district non-public schools, pursuant to title 16,

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Chapter 21.1. The state will assume the costs of non-public out-of-district transportation for those

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districts participating in the statewide system; and (2) This fund will provide direct state funding

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for the excess costs associated with transporting students within regional school districts,

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established pursuant to title 16, chapter 3. This fund requires that the state and regional school

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district share equally the student transportation costs net any federal sources of revenue for these

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expenditures. The department of elementary and secondary education shall prorate the funds

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available for distribution among those eligible school districts if the total approved costs for

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which school districts are seeking reimbursement exceed the amount of funding available in any

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fiscal year.

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     (f) Public school districts that are regionalized shall be eligible for a regionalization

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bonus as set forth below.

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     (1) As used herein, the term "regionalized" shall be deemed to refer to a regional school

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district established under the provisions of chapter 16-3 including the Chariho Regional School

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district.

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     (2) For those districts that are regionalized as of July 1, 2010, the regionalization bonus

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shall commence in FY 2012. For those districts that regionalize after July 1, 2010, the

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regionalization bonus shall commence in the first fiscal year following the establishment of a

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regionalized school district as set forth section 16-3, including the Chariho Regional School

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District.

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     (3) The regionalization bonus in the first fiscal year shall be two percent (2.0%) of the

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state's share of the foundation education aid for the regionalized district as calculated pursuant to

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§§ 16-7.2-3 and 16-7.2-4 in that fiscal year.

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     (4) The regionalization bonus in the second fiscal year shall be one percent (1.0%) of the

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state's share of the foundation education aid for the regionalized district as calculated pursuant to

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§§ 16-7.2-3 and 16-7.2-4 in that fiscal year.

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     (5) The regionalization bonus shall cease in the third fiscal year.

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     (6) The regionalization bonus for the Chariho regional school district shall be applied to

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the state share of the permanent foundation education aid for the member towns.

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     (7) The department of elementary and secondary education shall prorate the funds

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available for distribution among those eligible regionalized school districts if the total approve

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costs for which regionalized school districts are seeking a regionalization bonus exceed the

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amount of funding appropriated in any fiscal year.

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     (g) Categorical programs defined in (a) through (f) shall be funded pursuant to the

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transition plan in § 16-7.2-7.

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     SECTION 5. Sections 16-7-17, 16-7-38 and 16-7-41 of the General Laws in Chapter 16-7

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entitled "Foundation Level School Support" are hereby amended to read as follows:

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     16-7-17. Time of payment of state's share of the basic program and approved

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expenditures. -- There shall be paid by the state to each community in twelve (12) monthly

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installments an amount as determined by law to be the state's share of the cost of the basic

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program for the reference year and all approved expenditures in excess of the basic program for

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the reference year, provided, however, that these payments to a community shall be reduced by

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the amount of funds deposited by the department into the local education agency EPSDT account

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in accordance with section 40-8-18 on behalf of the community. The July and August payments

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payment shall be two and one half percent (2 1/2%) two and fifty-four hundredths percent

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(2.54%) of the state's share based upon the estimated pupil data, valuation data, and expenditure

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data for the reference year and the September August through June payments shall each be nine

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and one half percent (9 1/2%) eight and eighty-six hundredths percent (8.86%) of the aid due and

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payable based upon the data for the reference year, except for the city of East Providence which

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shall be paid during October and April in accordance with chapter 344 of the Public Laws of

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1982.

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     16-7-38. Time for payments to communities. -- There shall be paid during October and

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April on September 15 and March 15 of each year one-half (1/2) of the amount to which each

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community is entitled in terms of the computation in section 16-7-41.

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     16-7-41. Computation of school housing aid. -- (a) In each fiscal year the state shall pay

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to each community a grant to be applied to the cost of school housing equal to the following:

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      The cost of each new school housing project certified to the commissioner of elementary

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and secondary education not later than July 15 of the fiscal year shall be divided by the actual

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number of years of the bond issued by the local community or the Rhode Island Health and

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Educational Building Corporation in support of the specific project, times the school housing aid

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ratio; and provided, further, with respect to costs of new school projects financed with proceeds

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of bonds issued by the local community or the Rhode Island Health and Educational Building

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Corporation in support of the specific project, the amount of the school housing aid payable in

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each fiscal year shall not exceed the amount arrived at by multiplying the principal and interest of

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the bonds payable in each fiscal year by the school housing aid ratio and which principal and

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interest amount over the life of the bonds, shall, in no event, exceed the costs of each new school

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housing project certified to the commissioner of elementary and secondary education. If a

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community fails to specify or identify the appropriate reimbursement schedule, the commissioner

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of elementary and secondary education may at his or her discretion set up to a five (5) year

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reimbursement cycle for projects under five hundred thousand dollars ($500,000); up to ten (10)

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years for projects up to three million dollars ($3,000,000); and up to twenty (20) years for

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projects over three million dollars ($3,000,000).

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      (b) Aid shall be provided for the same period as the life of the bonds issued in support of

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the project and at the school housing aid ratio applicable to the local community at the time of the

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bonds issued in support of the project as set forth in section 16-7-39.

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      (c) Aid shall be paid either to the community or in the case of projects financed through

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the Rhode Island Health and Educational Building Corporation, to the Rhode Island Health and

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Educational Building Corporation or its designee including, but not limited to, a trustee under a

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bond indenture or loan and trust agreement, in support of bonds issued for specific projects of the

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local community in accordance with this section, section 16-7-40 and section 16-7-44.

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Notwithstanding the preceding, in case of failure of any city, town or district to pay the amount

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due in support of bonds issued on behalf of a city or town school project financed by the Rhode

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Island Health and Educational Building Corporation, upon notification by the Rhode Island

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Health and Educational Building Corporation, the general treasurer shall deduct the amount from

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aid provided under this section, section 16-7-40, and section 16-7-44 and section 16-7-15 through

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section 16-7-34.3 due the city, town or district and direct said funding to the Rhode Island Health

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and Educational Building Corporation or its designee.

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      (d) Notwithstanding any provisions of law to the contrary, in connection with the

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issuance of refunding bonds benefiting any local community, any net interest savings resulting

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from the refunding bonds issued by such community or a municipal public buildings authority for

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the benefit of the community or by the Rhode Island health and educational building corporation

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for the benefit of the community, in each case in support of school housing projects for the

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community, shall be allocated between the community and the state of Rhode Island, by applying

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the applicable school housing aid ratio at the time of issuance of the refunding bonds, calculated

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pursuant to section 16-7-39, that would otherwise apply in connection with school housing

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projects of the community. In connection with any such refunding of bonds, the finance director

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or the chief financial officer of the community shall certify such net interest savings to the

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commissioner of elementary and secondary education. Notwithstanding section 16-7-44 or any

11-1

other provision of law to the contrary, school housing projects costs in connection with any such

11-2

refunding bond issue shall include bond issuance costs incurred by the community, the municipal

11-3

public buildings authority or the Rhode Island health and educational building corporation, as the

11-4

case may be, in connection therewith. In connection with any refunding bond issue, school

11-5

housing project costs shall include the cost of interest payments on such refunding bonds, if the

11-6

cost of interest payments was included as a school housing cost for the bonds being refunded. A

11-7

local community or municipal public buildings authority shall not be entitled to the benefits of

11-8

this subsection (d) unless the net present value savings resulting from the refunding is at least

11-9

three percent (3%) of the refunded bond issue.

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      (e) Any provision of law to the contrary notwithstanding, the commissioner of

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elementary and secondary education shall cause to be monitored the potential for refunding

11-12

outstanding bonds of local communities or municipal public building authorities or of the Rhode

11-13

Island Health and Educational Building Corporation issued for the benefit of local communities

11-14

or municipal public building authorities and benefiting from any aid referenced in this section. In

11-15

the event it is determined by said monitoring that the net present value savings which could be

11-16

achieved by refunding such bonds of the type referenced in the prior sentence including any

11-17

direct costs normally associated with such refundings is equal to (i) at least one hundred thousand

11-18

dollars ($100,000) and (ii) for the state and the communities or public building authorities at least

11-19

three percent (3%) of the bond issue to be refunded including associated costs then, in such event,

11-20

the commissioner (or his or her designee) may direct the local community or municipal public

11-21

building authority for the benefit of which the bonds were issued, to refund such bonds. Failure of

11-22

the local community or municipal public buildings authority to timely refund such bonds, except

11-23

due to causes beyond the reasonable control of such local community or municipal public

11-24

building authority, shall result in the reduction by the state of the aid referenced in this section 16-

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7-4.1 associated with the bonds directed to be refunded in an amount equal to ninety percent

11-26

(90%) of the net present value savings reasonably estimated by the commissioner of elementary

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and secondary education (or his or her designee) which would have been achieved had the bonds

11-28

directed to be refunded been refunded by the ninetieth (90th) day (or if such day is not a business

11-29

day in the state of Rhode Island, the next succeeding business day) following the date of issuance

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of the directive of the commissioner (or his or her designee) to refund such bonds. Such reduction

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in the aid shall begin in the fiscal year following the fiscal year in which the commissioner issued

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such directive for the remaining term of the bond.

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      (f) Payments shall be made in accordance with section 16-7-40 and this section.

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     SECTION 6. Section 16-7-23 of the General Laws in Chapter 16-7 entitled "Foundation

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Level School Support" is hereby amended to read as follows:

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     16-7-23. Community requirements -- Adequate minimum budget provision. -- (a)

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The school committee's budget provisions of each community for current expenditures in each

12-38

budget year shall provide for an amount from all sources sufficient to support the basic program

12-39

and all other approved programs shared by the state. Each community shall contribute local funds

12-40

to its school committee in an amount not less than its local contribution for schools in the

12-41

previous fiscal year except to the extent permitted by section sections 16-7-23.1 and 16-7-23.2.

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Provided, that for the fiscal years 2010 and 2011 each community shall contribute to its school

12-43

committee in an amount not less than ninety-five percent (95.0%) of its local contribution for

12-44

schools for the fiscal year 2009. Calculation of the annual local contribution shall not include

12-45

Medicaid revenues received by the municipality or district pursuant to chapter 8 of title 40. A

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community which has a decrease in enrollment may compute maintenance of effort on a per pupil

12-47

rather than on an aggregate basis when determining its local contribution; furthermore, a

12-48

community which experiences a nonrecurring expenditure for its schools may deduct the

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nonrecurring expenditure in computing its maintenance of effort. The deduction of nonrecurring

12-50

expenditures shall be with the approval of the commissioner. Provided, however, that

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notwithstanding any provision of this title to the contrary, debt service that is no longer carried on

12-52

the books of any school district shall not be included in any school districts’ annual budget, nor

12-53

shall non-recurring debt service be included in maintenance of effort as set forth in this chapter,

12-54

nor shall any non-recruiting debt service be included in the operating budget of any school

12-55

district. For the purposes set forth above non-recurring capital lease payments shall be considered

12-56

non-recurring debt service. The courts of this state shall enforce this section by writ of mandamus

12-57

means of injunctive relief.

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      (b) Whenever any state funds are appropriated for educational purposes, the funds shall

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be used for educational purposes only and all state funds appropriated for educational purposes

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must be used to supplement any and all money allocated by a city or town for educational

12-61

purposes and, in no event, shall state funds be used to supplant, directly or indirectly, any money

12-62

allocated by a city or town for educational purposes. All state funds shall be appropriated by the

12-63

municipality to the school committee for educational purposes in the same fiscal year in which

12-64

they are appropriated at the state level even if the municipality has already adopted a school

12-65

budget. All state and local funds unexpended by the end of the fiscal year of appropriation shall

12-66

remain a surplus of the school committee and shall not revert to the municipality. Any surplus of

12-67

state or local funds appropriated for educational purposes shall not in any respect affect the

12-68

requirement that each community contribute local funds in an amount not less than its local

13-1

contribution for schools in the previous fiscal year, subject to subsection (a) of this section, and

13-2

shall not in any event be deducted from the amount of the local appropriation required to meet the

13-3

maintenance of effort provision in any given year.

13-4

     SECTION 7. Chapter 16-7 of the General Laws entitled "Foundation Level School

13-5

Support" is hereby amended by adding thereto the following section:

13-6

     16-7-23.2. School deficit reduction -- Maintenance of effort provision. – A city, town,

13-7

or regional school district appropriating authority may appropriate supplemental funds to

13-8

eliminate or reduce a school budget deficit. To the extent that such a supplemental appropriation

13-9

represents payment of past annual expenditure, the payment shall not be used in the computation

13-10

of the maintenance of effort requirements established by section 16-7-23.

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     SECTION 8. Chapter 16-25 of the General Laws entitled "EDUCATION OF

13-12

CHILDREN WHO ARE DEAF OR BLIND" is hereby repealed in its entirety.

13-13

     CHAPTER 16-25

13-14

Education of Children Who are Deaf or Blind

13-15

     16-25-1. Appointment of state beneficiaries at special institutions. -- The governor, on

13-16

recommendation of the department of elementary and secondary education and upon application

13-17

of the parent or guardian, may appoint any child who is deaf, blind, or visually impaired being a

13-18

legal resident of this state, who shall appear to the department to be a fit subject for education, as

13-19

a state beneficiary at any suitable institution or school now established or that may be established

13-20

either within or without the state, for the period that he or she may determine, within the limit of

13-21

ten (10) years; provided, that he or she may, upon the special recommendation of the department,

13-22

extend the period and that he or she shall have the power to revoke any appointment at any time

13-23

for cause.

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     16-25-2. Supervision of beneficiaries -- Reports to general assembly. -- The

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department of elementary and secondary education is invested with the duty and responsibility of

13-26

supervising the education of all those beneficiaries, and no child appointed as provided in section

13-27

16-25-1 shall be withdrawn from any institution or school except with its consent, or the consent

13-28

of the governor; and the department shall annually report its doings under this chapter to the

13-29

general assembly, with any further information in relation to the several institutions at which

13-30

these beneficiaries have been placed that may be deemed desirable.

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     16-25-3. Repealed.. --

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     16-25-4. Care and instruction of children who are blind or visually impaired under

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school age. -- The department of elementary and secondary education shall have power to

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provide for the suitable care, maintenance, and instruction of babies and children under school

14-1

age residing in this state who may be born blind or become blind or visually impaired, in any case

14-2

where by reason of lack of means or other cause the parent or parents of the children may be

14-3

unable to properly care for, maintain, and educate the children.

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     16-25-5. Contracts for care of children who are blind or visually impaired. -- For the

14-5

purpose of providing care, maintenance, and education of children who are blind or visually

14-6

impaired, the department of elementary and secondary education shall have power to contract

14-7

with any institution having or furnishing special education and related services in this or any

14-8

other state at a contract price within the amount appropriated.

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     16-25-6. Payment of expenses of chapter. -- Each community, as defined in chapter 7 of

14-10

this title, shall contribute to the department of elementary and secondary education in accordance

14-11

with regulations to be prescribed by the department.

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     16-25-7. Repealed.. --

14-13

     SECTION 9. Section 16-3.1-11 of the General Laws in Chapter 16-3.1 entitled

14-14

"Cooperative Service Among School Districts" is hereby amended to read as follows:

14-15

     16-3.1-11. Urban collaborative. -- Notwithstanding the provisions of any general or

14-16

special law to the contrary, the school committees of the cities of Providence, Pawtucket, East

14-17

Providence, Central Falls and other Rhode Island school districts as may be approved for

14-18

inclusion by existing member districts in accordance with collaborative bylaws are authorized and

14-19

empowered to continue and/or initiate cooperative efforts to provide alternate education programs

14-20

and/or diagnostic services required by law or regulation for students achieving limited success in

14-21

traditional settings and to do all things necessary including, but not limited to utilization of

14-22

technology, including television, all on a collaborative basis. The various school committees may

14-23

assign and delegate to their respective school committee chairs or designee or superintendents of

14-24

schools or designee, acting as a regional board any duties, responsibilities, and powers that the

14-25

committees may deem necessary for the conduct, administration, and management of the urban

14-26

collaborative. Beginning on July 1, 2013 the urban collaborative shall be funded pursuant to the

14-27

provisions of section 16-7.2-3. The state share of the permanent foundation education aid shall be

14-28

paid directly to the urban collaborative pursuant to the provisions of section 16-7.2-7. The local

14-29

school district shall transfer the difference between the calculated state share of the permanent

14-30

foundation education aid and the amount calculated pursuant to the provisions of section 16-7.2-7

14-31

to the urban collaborative, until the transition of the state share is complete. In addition, the local

14-32

school district shall pay the local share of education funding to the urban collaborative as outlined

14-33

in section 16-7.2-5.

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     SECTION 10. This article shall take effect on July 1, 2012.