2014 -- H 7240

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LC003887

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

     Introduced By: Representatives Malik, Gallison, Marshall, Walsh, and Kennedy

     Date Introduced: January 30, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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

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

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

program shall provide direct state funding for:

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

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

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

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

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

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

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

any fiscal year;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

and

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

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

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

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

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

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

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

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

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

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

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

fiscal year.

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

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

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

district.

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

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

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

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

District.

      (3) The regionalization bonus in the first and subsequent fiscal year years shall be two

percent (2.0%) of the state's share of the foundation education aid for the regionalized district as

calculated pursuant to sections 16-7.2-3 and 16-7.2-4 in that fiscal year.

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

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

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

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

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

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

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

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

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

amount of funding appropriated in any fiscal year.

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

transition plan in section 16-7.2-7.

     SECTION 2. This act shall take effect upon passage.

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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

***

     This act would amend the provisions of the Education Equity and Property Tax Relief

Act by freezing the amount of the regionalization bonus at two percent (2%) of the state's share of

the foundation education aid formula, and by removing the provision that the bonus would cease

in the third fiscal year after regionalization.

     This act would take effect upon passage.

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LC003887

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