2014 -- H 7353

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LC003944

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

____________

A N   A C T

RELATING TO EDUCATION - THE EDUCATION EQUITY AND PROPERTY TAX RELIEF

ACT

     Introduced By: Representatives Casey, and Phillips

     Date Introduced: February 06, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

entitled "The Education Equity and Property Tax Relief Act" are hereby amended to read as

follows:

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

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

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

amount to support high need students in (a)(2), and the amount to support school districts

provided for in subsection (a)(3), which shall be multiplied by the district state share ratio

calculated pursuant to section 16-7.2-4 to determine the foundation aid.

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

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

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

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

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

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

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

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

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

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

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

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

school and state-operated school students.

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

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

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

resident children eligible for USDA reimbursable school meals.

     (3) The amount to support school districts with students residing in housing taxed in

accordance with § 44-5-13.11 shall be determined by multiplying a housing factor of forty

percent (40%) by the core instruction per pupil amount described in § 16-7.2-3(1) and applying

that amount to all resident children residing in housing taxed in accordance with § 44-5-13.11.

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

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

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

programs required in law are funded.

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

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

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

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

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

USDA reimbursable school meals in grades PK-6 (PK6FRPL) squared, plus the percentage of

students residing in housing taxed in accordance with § 44-5-13.11 squared, divided by two.

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

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

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

     SECTION 2. This act shall take effect upon passage and shall apply to all school years

commencing on or after July 1, 2014.

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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 calculation of the permanent foundation education aid to

school districts. The act would make an adjustment based upon students residing in qualified low

income housing.

     This act would take effect upon passage and would apply to all school years commencing

on or after July 1, 2014.

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