2012 -- H 7953

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LC02211

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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 - PERMANENT FOUNDATION EDUCATION AID

     Introduced By: Representative John J. McCauley

     Date Introduced: March 15, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 16-7.2-3, 16-7.2-4 and 16-7.2-6 of the General Laws in Chapter

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16-7.2 entitled "The Education Equity and Property Tax Relief Act" are hereby amended to read

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as follows:

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     16-7.2-3. Permanent foundation education aid established. -- (a) Beginning in the

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2012 fiscal year, the following foundation education aid formula shall take effect. The foundation

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education aid for each district shall be the sum of the core instruction amount in (a)(1) and the

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amount to support high need students in subdivision (a)(2), and the amount to support career and

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technical education students attending schools operated under the provisions of chapter 16-45

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(“Regional Vocational Schools”) as set forth in subdivision (a)(3) which shall be multiplied by

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the district state share ratio calculated pursuant to subdivision 16-7.2-4 to determine the

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foundation aid.

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      (1) The core instruction amount shall be an amount equal to a statewide per pupil core

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instruction amount as established by the department of elementary and secondary education,

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derived from the average of northeast regional expenditure data for the states of Rhode Island,

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Massachusetts, Connecticut, and New Hampshire from the National Center for Education

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Statistics (NCES) that will adequately fund the student instructional needs as described in the

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basic education program and multiplied by the district average daily membership as defined in

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section 16-7-22. Expenditure data in the following categories: instruction and support services for

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students, instruction, general administration, school administration and other support services

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from the National Public Education Financial Survey as published by NCES and enrollment data

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from the Common Core of Data also published by NCES will be used when determining the core

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instruction amount. The core instruction amount will be updated annually. For the purpose of

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calculating this formula, school districts' resident average daily membership shall exclude charter

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school and state-operated school students.

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      (2) The amount to support high need students beyond the core instruction amount shall

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be determined by multiplying a student success factor of forty percent (40%) by the core

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instruction per pupil amount described in section 16-7.2-3(1) and applying that amount to all

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resident children eligible for USDA reimbursable school meals.

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     (3) The amount to support career and technical education students beyond the core

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instruction amount shall be determined by multiplying a student success factor of thirty-three

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percent (33%) by the core instruction per pupil amount described in subdivision 16-7.2-3(a)(1)

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herein and applying that amount to all resident children participating in career and technical

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education programs at schools operated under the provisions of chapter 16-45 (“Regional

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Vocational Schools”).

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     (b) LEAs may set aside a portion of funds received under subsection (a) to expand

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learning opportunities such as after school and summer programs, full day kindergarten and/or

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multiple pathway programs provided that the basic education program and all other approved

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programs required in law are funded.

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     16-7.2-4. Determination of state's share. -- For each district, the state's share of the

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foundation education aid calculated pursuant to section 16-7.2-3(a) shall use a calculation that

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considers a district's revenue generating capacity and concentration of high-need students. The

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calculation is the square root of the sum of the state share ratio for the community calculation

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(SSRC), pursuant to section 16-7-20, squared plus the district's percentage of students eligible for

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USDA reimbursable school meals in grades PK-6 (PK6FRPL) squared, divided by two., plus the

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district’s percentage of students participating in career and technical education programs at

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schools operated under the provisions of chapter 16-45 ("Regional Vocational Schools”), squared,

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divided by three (3).

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      For purposes of determining the state's share, school district student data used in this

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calculation shall include charter school and state school students. These ratios are used in the

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permanent foundation education aid formula calculation described in section 16-7.2-5.

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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 section 16-7.2-3 the permanent foundation education aid

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program 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 section 16-7.2-5, due to concerns

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

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difference between education aid calculated pursuant to section 16-7.2-3 and education aid, as of

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the effective date of the formula, shall be shared between the state and the city of Central Falls.

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The state's share of the fund will be paid directly to the Central Falls school district upon

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verification that the city has transferred its share of the local contribution for education. At the

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end of the transition period defined in section 16-7.2-7, the municipality will continue its

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contribution pursuant to section 16-7-24; and

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

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schools 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 state funding for the

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costs associated with transporting students from any districts within the state to the William M.

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Davies Jr. Career and Technical High School (“Davies”) or the Metropolitan Regional Career and

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Technical Center (“the Met Center”), pursuant to the provisions of chapter 16-21.1

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(“Transportation of School Pupils Beyond City and Town Limits”); and (3) This fund will

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provide direct state funding for the excess costs associated with transporting students within

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

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state and regional school district share equally the student transportation costs net any federal

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sources of revenue for these expenditures. The department of elementary and secondary

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education shall prorate the funds available for distribution among those eligible school districts if

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the total approved costs for which school districts are seeking reimbursement exceed the amount

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of funding available in any 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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sections 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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sections 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 section 16-7.2-7.

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     SECTION 2. Section 16-21.1-2 of the General Laws in Chapter 16-21.1 entitled

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"Transportation of School Pupils Beyond City and Town Limits" is hereby amended to read as

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follows:

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     16-21.1-2. School bus districts established. -- (a) There are hereby established school

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bus districts within the state to provide bus transportation in the interest of public safety, health,

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and welfare for pupils in grades kindergarten through twelve (12), or in special education

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programs, who attend public schools, including vocational schools and special education

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programs provided in accord with regulations of the board of regents for elementary and

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secondary education, consolidated schools, regional schools established under the provisions of

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section 16-3-1 et seq., or who participate in cooperative programs as provided by section 16-3.1-1

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et seq., and nonpublic nonprofit schools which are consolidated, regionalized, or otherwise

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established to serve residents of a specific area within the state which schools satisfy the

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requirements of law for any of the grades of school, kindergarten through twelve (12), as follows:

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      (1) Region I: The towns of Burrillville, North Smithfield, and Cumberland, and the city

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of Woonsocket;

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      (2) Region II: The county of Kent, except the town of West Greenwich and the towns of

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Foster, Glocester, and Scituate;

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      (3) Region III: The towns of Lincoln, Smithfield, Johnston, North Providence,

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Barrington, Warren, and Bristol, and the cities of Cranston, Central Falls, East Providence,

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Pawtucket, and Providence;

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      (4) Region IV: The county of Washington and the towns of Jamestown and West

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Greenwich;

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      (5) Region V: The towns of Little Compton, Middletown, Portsmouth, and Tiverton, and

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the city of Newport.

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      (b) A pupil attending a school, including a public school, vocational school, special

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education program provided in accord with regulations of the board of regents for elementary and

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secondary education, a regional school established under the provisions of section 16-3-1 et seq.,

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as authorized by section 16-3.1-1 et seq., or a nonpublic nonprofit school for grades kindergarten

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through twelve (12), consolidated, regionalized, or otherwise established to serve residents of a

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specific area within the state for any of the grades of schools, kindergarten through twelve (12), in

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the interest of public safety, health, and welfare, shall be provided with bus transportation to the

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school or facility which the pupil attends, within the region in which the pupil resides, by the

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school committee of the city or town within which the pupil resides. The cost of transporting a

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pupil attending a charter school, the William M. Davies, Jr. Career and Technical High School

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("Davies"), or the Metropolitan Regional Career and Technical Center ("the Met Center") within

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the established region shall be charged to the receiving school at the same grade level

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transportation per pupil cost of the resident district. Districts may offer transportation to charter

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schools, Davies, or the Met Center outside the established region in order to facilitate efficiency

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provided there is not additional cost to the resident district. The actual cost of transporting a pupil

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attending the William M. Davies Jr. Career and Technical High School (“Davies”) or the

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Metropolitan Regional Career and Technical Center (“the Met Center”) from any district within

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the state shall be funded through the transportation categorical fund pursuant to the provisions of

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subsection 167.2-6(e).

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     SECTION 3. This act shall take effect upon passage.

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LC02211

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO EDUCATION - PERMANENT FOUNDATION EDUCATION AID

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     This act would revise the provisions providing for funding for transportation of students

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to the William M. Davies Jr. Career and Technical High School and the Metropolitan Regional

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Career and Technical Center.

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     This act would take effect upon passage.

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LC02211

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