2014 -- H 7746

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LC004827

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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 - SCHOOL FUNDING FORMULA

     

     Introduced By: Representatives Tanzi, Canario, Finn, Valencia, and Walsh

     Date Introduced: February 27, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-7.2-7 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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     16-7.2-7. Transition plan. -- (a) The general assembly, shall annually determine the

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appropriation of education aid pursuant to this chapter using a transition plan to begin in fiscal

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year 2012, not to exceed seven (7) years for LEA's for whom the calculated education aid

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pursuant to section 16-7.2-3 is more than the education aid the LEA is receiving as of the

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effective date of the formula, and ten (10) years for LEA's for whom the calculated education aid

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pursuant to section 16-7.2-3 is less than the education aid the LEA is receiving as of the effective

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date of the formula.

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      (b) The local share of funding pursuant to section 16-7.2-5 shall be transitioned

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proportionately over a period not to exceed five (5) years. The transition shall provide a

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combination of direct aid to districts, funds for the categorical programs, and district savings

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through state-assumed costs, as determined by the general assembly on an annual basis, Updates

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to any components of the permanent foundation education aid formula, such as student data,

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property values, and/or median family income, that result in an increase or decrease in state

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education aid that impacts the total state and local contribution by more than three percent (3%)

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shall be transitioned over a period of time not to exceed three (3) years.

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     (c) Notwithstanding the provisions of subsection (a) of this section, the general assembly

 

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recognizes that the LEA’s for whom the calculated education aid pursuant to § 16-7.2-3 is less

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than the education aid the LEA was receiving as of the effective date of the formula has been

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unduly burdensome on said LEA’s. Therefore, for the fiscal years 2015, 2016 and 2017, the

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calculated education aid pursuant to § 16-7.2-3 shall remain the same as in fiscal year 2014.

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     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 - SCHOOL FUNDING FORMULA

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     This act would freeze the amount of education aid for local school agencies that are

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scheduled to receive less aid under the funding formula. The education aid would be frozen at the

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rate provided in fiscal year 2014 for a period of three years.

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     This act would take effect upon passage.

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