2013 -- S 0523

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LC01179

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

     Introduced By: Senator Roger Picard

     Date Introduced: February 28, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-7.2-6 of the General Laws in Chapter 16-7.2 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 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

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

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foundation education aid formula, including but not limited to transportation, facility

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maintenance, and retiree health benefits shall be shared between the state and the city of Central

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Falls. 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 section 16-7.2-7, the municipality will continue its contribution pursuant to section 16-7-24;

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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 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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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) Expenditures for services and instructional programs for students residing in

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conventional public housing units owned by public housing authorities which are not on local tax

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rolls. Payments shall be made when the services and programs have been carried out in

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accordance with the requirements of state law and regulations of the state board of education.

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     (1) The following terms have the following meanings:

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     (i) "Incentive entitlement" means the sum payable to a local school district under this

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formula.

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     (ii) "State share ratio" means the state share ratio as calculated under section 16-7.2-4.

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     (iii) "Conventional public housing" means those properties identified as eligible low rent

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housing projects under title I of P.L. 81-874, 20 U.S.C. section 236 et seq.

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     (2) The incentive entitlement for a district shall be the product of the average per pupil

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cost for the district based upon the Uniform Chart of Accounts, the number of full-time

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equivalent pupils in grade twelve (12) and below residing in conventional public housing, and the

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state share ratio for the district.

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     (3) 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 reimbursements exceed the amount of funding appropriated in

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any fiscal year.

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      (g)(h) Categorical programs defined in (a) through (f)(g) 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 16-7-34.3 of the General Laws in Chapter 16-7 entitled

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"Foundation Level School Support" is hereby repealed.

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     16-7-34.3. Reimbursement by the state for conventional public housing students. --

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(a) Each school district shall be reimbursed for expenditures for services and instructional

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programs for students residing in conventional public housing units owned by public housing

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authorities which are not on local tax rolls. Reimbursement shall be made when the services and

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programs have been carried out in accordance with the requirements of state law and regulations

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of the board of regents for elementary and secondary education. The following formula shall be

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used to distribute aid for the students residing in the public housing units:

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      (1) (i) The following formula and definitions are to be used to determine the entitlement

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for each school district:

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      (ii) The incentive entitlement for a district shall be the product of the average per pupil

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cost for the district, the number of full time equivalent pupils in grade 12 and below residing in

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conventional public housing, and the state share ratio for the district.

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      (2) In this formula the following terms have the following meanings:

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      (i) "Incentive entitlement" means the sum payable to a local school district under this

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formula.

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      (ii) "Average per pupil costs for the district" means all expenditures approved by the

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state board of regents for elementary and secondary education as defined in section 16-7-20 plus

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the costs of special education required under chapter 24 of this title divided by average daily

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membership of pupils as determined in section 16-7-22(1).

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      (iii) "State share ratio" means the effective state share ratio as calculated under section

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16-7-20.

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      (iv) "Conventional public housing" means those properties identified as eligible low rent

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housing projects under title I of P.L. 81-874, 20 U.S.C. section 236 et seq.

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      (b) Students living on property owned by the Rhode Island resource recovery

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corporation shall also be included in computations under this section.

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      (c) Students living in the North Kingstown Traveler's Aid housing project shall also be

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included in computations under this section.

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      (d) An amount shall be appropriated for the purpose of reimbursing school districts as

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required pursuant to subsection (a) for conventional public housing.

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      (e) If the sum appropriated in subsection (a) of this section is not sufficient to pay in full

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the amount for conventional public housing which each city and town is entitled to receive in any

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fiscal year, the maximum amount which all cities and towns are entitled to receive under this

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section shall be deducted from the sum appropriated for all cities and towns under section 16-7-

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20. If, after final allocation of sections 16-7-15 through 16-7-34, a district receives more than one

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hundred percent (100%) reimbursement, the excess shall be deducted from this conventional

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public housing allocation in the following fiscal year.

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      (f) Reimbursement payments as calculated under this chapter shall be made according to

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section 16-7-16. All payments under this chapter shall be used exclusively to support services for

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conventional public housing students.

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      (g) Expenditure reports shall be submitted by the local school districts to the

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commissioner of elementary and secondary education in accordance with rules and regulations of

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the board of regents for elementary and secondary education.

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     SECTION 3. This act shall take effect upon passage.

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LC01179

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

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     This act would delete the provisions of section 16-7-34.3 regarding reimbursement by the

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state for conventional public housing students. This act would add similar language to section

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16-7.2-6 to provide permanent foundation education aid funding for services and instructional

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services for students residing in conventional public housing units.

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     This act would take effect upon passage.

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LC01179

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