2012 -- H 8007

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LC02222

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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 -- STATE AID PROGRAMS

     Introduced By: Representatives Brien, and Newberry

     Date Introduced: March 28, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 16-7-17 and 16-7-38 of the General Laws in Chapter 16-7 entitled

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"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.

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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, except for the city of East

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Providence which shall be paid aid during October and April in accordance with chapter 344 of

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the Public Laws of 1982.

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     SECTION 2. Section 45-13-12 of the General Laws in Chapter 45-13 entitled "State Aid"

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is hereby amended to read as follows:

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     45-13-12. Distressed communities relief fund. -- (a) There is established a fund to

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provide state assistance to those Rhode Island cities and towns which have the highest property

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tax burdens relative to the wealth of taxpayers.

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      (b) Establishment of indices. - Four (4) indices of distress shall be established to

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determine eligibility for the program. Each community shall be ranked by each distress index and

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any community which falls into the lowest twenty percent (20%) of at least three (3) of the four

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(4) indices shall be eligible to receive assistance. The four (4) indices are established as follows:

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      (1) Percent of tax levy to full value of property. - This shall be computed by dividing the

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tax levy of each municipality by the full value of property for each municipality. For the 1990-91

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fiscal year, tax levy and full value shall be as of the assessment date December 31, 1986.

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      (2) Per capita income. - This shall be the most recent estimate reported by the U.S.

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Department of Commerce, Bureau of the Census.

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      (3) Percent of personal income to full value of property. - This shall be computed by

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multiplying the per capita income above by the most recent population estimate as reported by the

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U.S. Department of Commerce, Bureau of the Census, and dividing the result by the full value of

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property.

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      (4) Per capita full value of property. - This shall be the full value of property divided by

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the most recent estimate of population by the U.S. Department of Commerce, Bureau of the

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Census.

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      (c) Distribution of funds. - Funds shall be distributed to each eligible community on the

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basis of the community's tax levy relative to the total tax levy of all eligible communities. For the

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fiscal year 1990-91, the reference year for the tax levy shall be the assessment date of December

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31, 1988. For each fiscal year thereafter, except for fiscal year 2007-2008, the reference year and

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the fiscal year shall bear the same relationship. For the fiscal year 2007-2008 the reference year

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shall be the same as for the distributions made in fiscal year 2006-2007.

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      Any newly qualifying community shall be paid fifty percent (50%) of current law

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requirements the first year it qualifies. The remaining fifty percent (50%) shall be distributed to

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the other distressed communities proportionately. When any community falls out of the distressed

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community program, it shall receive a one-time payment of fifty percent (50%) of the prior year

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requirement exclusive of any reduction for first year qualification. The community shall be

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considered a distressed community in the fall-out year.

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      (d) Appropriation of funds. - The state of Rhode Island shall appropriate funds in the

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annual appropriations act to support this program. For each of the fiscal years ending June 30,

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2011 and June 30, 2012, seven hundred eighty-four thousand four hundred fifty-eight dollars

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($784,458) of the total appropriation shall be distributed equally to each qualifying distressed

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community.

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      (e) Payments. - Payments shall be made to eligible communities each March equal to one

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half of the appropriated amount and each August equal to one half of the appropriated amount.

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     SECTION 3. This act shall take effect upon passage.

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LC02222

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO EDUCATION -- STATE AID PROGRAMS

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     This act would change the dates for payment of the state’s share of the basic program for

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foundational level school support and approved expenditures. It would also change the percentage

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of the aid due for both the July payment and the August through September payment which is

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payable based upon the data for the reference year. This act would also provide for payments to

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be made to each eligible community each August from the distressed community relief fund.

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     This act would take effect upon passage.

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LC02222

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