2012 -- H 7719

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LC00701

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO EDUCATION - FOUNDATION LEVEL SCHOOL SUPPORT

     Introduced By: Representatives Chippendale, Morgan, Guthrie, Reilly, and Costa

     Date Introduced: February 16, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. 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

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

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

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

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previous fiscal year except to the extent permitted by section 16-7-23.1. Provided, that for the

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fiscal years 2010 and 2011 each community shall contribute to its school committee in an amount

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not less than ninety-five percent (95.0%) of its local contribution for schools for the fiscal year

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2009. Calculation of the annual local contribution shall not include Medicaid revenues received

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by the municipality or district pursuant to chapter 8 of title 40. A community which has a

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decrease in enrollment may compute maintenance of effort on a per pupil rather than on an

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aggregate basis when determining its local contribution; furthermore, a community which

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

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in computing its maintenance of effort. The deduction of nonrecurring expenditures shall be with

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the approval of the commissioner. Provided, however, that notwithstanding any provision of this

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title to the contrary, debt service that is no longer carried on the books of any school district shall

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not be included in any school districts’ annual budget, nor shall non-recurring debt service be

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included in maintenance of effort as set forth in this chapter, nor shall any non-recruiting debt

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service be included in the operating budget of any school district. For the purposes set forth above

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non-recurring capital lease payments shall be considered non-recurring debt service. The courts

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of this state shall enforce this section by writ of mandamus.

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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

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

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

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

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

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

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

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

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

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

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

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maintenance of effort provision in any given year.

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     SECTION 2. This act shall take effect upon passage.

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LC00701

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO EDUCATION - FOUNDATION LEVEL SCHOOL SUPPORT

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     This act would prohibit non-recurring debt service from being included in any school

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district’s budget and maintenance of effort calculations.

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     This act would take effect upon passage.

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LC00701

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