2014 -- S 2862

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LC005267

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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 - SCHOOL COMMITTEES AND SUPERINTENDENTS

     

     Introduced By: Senators Pearson, Paiva Weed, Gallo, DiPalma, and Satchell

     Date Introduced: April 09, 2014

     Referred To: Senate Education

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 16-2-9.4 and 16-2-21 of the General Laws in Chapter 16-2 entitled

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"School Committees and Superintendents [ See Title 16 Chapter 97 - The Rhode Island Board of

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Education Act]" are hereby amended to read as follows:

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     16-2-9.4. School district accounting compliance. -- (a) The office of auditor general

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and the department of elementary and secondary education shall promulgate a uniform system of

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accounting, including a chart of accounts based on the recommendations of the advisory council

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on school finance, and require all accounts of the school districts, regional school districts, state

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schools and charter schools to be kept in accordance therewith; provided, that in any case in

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which the uniform system of accounting is not practicable, the office of auditor general in

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conjunction with the department of elementary and secondary education shall determine the

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manner in which the accounts shall be kept. The uniform system of accounting shall also include

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a standardized budget process to ensure districts can annually assess investment priorities and

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incorporate long range planning.

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      (b) For the purpose of securing a uniform system of accounting and a chart of accounts

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the advisory council on school finances, as defined in section 16-2-9.2 may make such surveys of

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the operation of any school districts, regional school district, state school or charter school as they

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shall deem necessary.

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      (c) Upon completion of the implementation of the uniform chart of accounts, all the

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school districts, regional school districts, state schools, and/or charter schools, shall implement a

 

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regents-approved budget model, that shall include a distinct line item for payments to charter

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schools, and use best practices established by the department of education for long range

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planning, budget development, and budget administration and reporting.

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      (d) If any school district, regional school district, state school or charter school fails to

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install and maintain the uniform system of accounting, including a chart of accounts and

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approved budget model, or fails to keep its accounts and interdepartmental records, or refuses or

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neglects to make the reports and to furnish the information in accordance with the method

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prescribed by the office of auditor general and the department of education or hinders or prevents

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the examination of accounts and financial records, the auditor general and the commissioner of

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education and/or their respective designee(s) shall make a report to the superintendent of schools

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of the local education agency, the school committee chairperson, the mayor or town manager, and

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the president of the town council, and/or for a charter school, to the board of trustees or directors,

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as applicable, in writing, specifying the nature and extent of the failure, refusal, neglect,

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hindrance, or prevention, and the commissioner is hereby authorized and directed to review the

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matter so reported. If the commissioner shall find that failure, refusal, neglect, hindrance, or

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prevention exists and that the school district, regional school district, state school or charter

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school should properly comply in the matter so reported, the commissioner shall direct the school

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district, regional school district, state school or charter school, in writing, to so comply. If the

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failure, refusal, neglect, hindrance, or prevention shall continue for a period of ten (10) days

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following the written direction, the commissioner may request the board of education for

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approval to withhold distribution of state aid to said school district, regional school district, state

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school or charter school. The board shall hold a hearing and provide the subject school and/or

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district notice and an opportunity to be heard at said hearing. After hearing thereon, the board

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may authorize the commissioner to withhold the distribution of state aid to said school district,

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regional school district, state school, or charter school, if the board determines such sanction is

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appropriate.

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      (e) The department of elementary and secondary education in consultation with the

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division of municipal finance shall conduct periodic reviews and analysis of school revenues and

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expenses. The department shall also review and monitor compliance with the approved budget

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model and best practices. The department shall identify those local education agencies considered

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to be at risk of a year-end deficit or a structural deficit that could impact future years. Such

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potential deficits shall be identified based on the periodic reviews, which may also include on-site

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visits and reporting in accordance with the provisions of section 45-12-22.2. Potential deficits

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shall be reported to the office of municipal finance, office of auditor general, superintendent,

 

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chairman of the school committee, mayor or town manager, and the president of the town council,

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of the applicable school district, regional school district, or state school, and/or for a charter

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school, to the board of trustees or directors, as applicable.

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     16-2-21. Pre-budget consultation -- Annual reports -- Appropriation requests --

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Budgets. -- (a) At least sixty (60) days but not more than ninety (90) days prior to the formal

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submission of the school budget to the appropriate city or town officials by the school committee,

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there shall be a joint pre-budget meeting between the school committee and the city or town

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council(s). At or before this meeting:

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      (1) The highest elected official of the city or town shall submit to the school committee

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an estimate, prepared in a manner approved by the department of administration, of projected

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revenues for the next fiscal year. In the case of the property tax, the projections shall include only

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changes in the property tax base, not property tax rates;

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      (2) The school committee shall submit to the city or town council a statement for the

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next ensuing fiscal year of anticipated total expenditures, projected enrollments with resultant

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staff and facility requirements, estimated enrollment and payments to charter schools and any

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necessary or mandated changes in school programs or operations; and

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      (3) The school committee shall prepare and submit, annually, to the department of

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elementary and secondary education, on or before the first day of August, a report in the manner

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and form prescribed by the state board of regents for elementary and secondary education; the

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committee shall also prepare not less than thirty (30) days before the date of the annual financial

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town meeting, or the date of the meeting of the city council at which annual appropriations are

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made, on forms prescribed and furnished by the department of elementary and secondary

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education, the estimates and recommendations of the amounts necessary to be appropriated for

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the support of public schools, including a distinct line item for estimated payments to charter

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schools for the fiscal year ensuing; provided, that a copy of these estimates and recommendations

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shall be sent to the department of elementary and secondary education, and until the report is

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made, and if the estimates and recommendations are not presented to the department, it may

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refuse to draw its orders for the money in the state treasury apportioned to the city or town;

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provided, that the necessary blank for the report has been furnished by the department on or

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before the first day of June, next preceding, and the necessary forms for the estimates and

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recommendations shall have been furnished by the department not less than sixty (60) days before

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the date of the annual appropriations meeting of the city council; the committee shall also prepare

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and submit annually to the department of elementary and secondary education and at the annual

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financial town meeting a report to the city or town, setting forth its doings, the state and condition

 

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of the schools, and plans for their improvement, which report, unless printed, shall be read in

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open meeting; and if printed, at least three (3) copies shall be transmitted to the department on or

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before the day of the annual financial town meeting in each year.

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      (b) If the amount appropriated by the town meeting, the city or town council, or budget

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referendum is either more or less than the amount recommended and requested by the school

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committee, the school committee shall, within thirty (30) days after the appropriation is made,

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amend its estimates and recommendations so that expenses are no greater than the total of all

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revenue appropriated by the state or town or provided for public schools under the care, control,

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and management of the school committee.

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      (c) Only a school budget in which total expenses are less than or equal to appropriations

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and revenues shall be considered an adopted school budget.

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      (d) Notwithstanding any provision of the general or public laws to the contrary:

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      (i) the budget adopted and presented by any school committee for the fiscal year 2008

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shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in

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excess of one hundred five and one-quarter percent (105.25%) of the total of municipal funds

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appropriated by the city or town council for school purposes for fiscal year 2007;

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      (ii) the budget adopted and presented by any school committee for the fiscal year 2009

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shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in

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excess of one hundred five percent (105%) of the total of municipal funds appropriated by the

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city or town council for school purposes for fiscal year 2008;

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      (iii) the budget adopted and presented by any school committee for the fiscal year 2010

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shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in

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excess of one hundred four and three-quarters percent (104.75%) of the total of municipal funds

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appropriated by the city or town council for school purposes for fiscal year 2009;

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      (iv) the budget adopted and presented by any school committee for the fiscal year 2011

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shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in

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excess of one hundred four and one-half percent (104.5%) of the total of municipal funds

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appropriated by the city or town council for school purposes for fiscal year 2010;

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      (v) the budget adopted and presented by any school committee for the fiscal year 2012

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shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in

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excess of one hundred four and one-quarter percent (104.25%) of the total of municipal funds

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appropriated by the city or town council for school purposes for fiscal year 2011; and

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      (vi) the budget adopted and presented by any school committee for the fiscal year 2013

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and for each fiscal year thereafter shall not propose the appropriation of municipal funds

 

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(exclusive of state and federal aid) in excess of one hundred four percent (104%) of the total of

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municipal funds appropriated by the city or town council for school purposes for the previous

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fiscal year.

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      (e) Notwithstanding any provision of the general or public laws to the contrary, any

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judgment rendered pursuant to subsection 16-2-21.4(b) shall consider the percentage caps on

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school district budgets set forth in subsection (d) of this section.

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     SECTION 2. Section 16-7.2-5 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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     16-7.2-5. Charter public schools, the William M. Davies, Jr. Career and Technical

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High School, and the Metropolitan Regional Career and Technical Center. -- (a) Charter

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public schools defined in chapter 16-77, the William M. Davies, Jr. Career and Technical High

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School (Davies) and the Metropolitan Regional Career and Technical Center (the Met Center)

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shall be funded pursuant to section 16-7.2-3. If the October 1 actual enrollment data for any

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charter public school shows a ten percent (10%) or greater change from the prior year enrollment

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which is used as the reference year average daily membership, the third and fourth quarter

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payments to the charter public school will be adjusted to reflect actual enrollment. The state share

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of the permanent foundation education aid shall be paid by the state directly to the charter public

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schools, Davies, and the Met Center pursuant to section 16-7.2-9 and shall be calculated using the

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state share ratio of the district of residence of the student as set forth in section 16-7.2-4. The

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department of elementary and secondary education shall provide the general assembly with the

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calculation of the state share of permanent foundation education aid for charter public schools

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delineated by school district. The local share of education funding, as defined by the department

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of elementary and secondary education and approved by the General Assembly, shall be paid to

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the charter public school, Davies, and the Met Center by the district of residence of the student

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and shall be the local per pupil cost calculated by dividing the local appropriation to education

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from property taxes net of debt service and capital projects as defined in the uniform chart of

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accounts by the average daily membership for each city and town, pursuant to section 16-7-22,

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for the reference year.

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      (b) Local district payments to charter public schools, Davies, and the Met Center for

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each district's students enrolled in these schools shall be made on a quarterly basis in July,

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October, January and April; however, the first local district payment shall be made by August 15

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instead of July. Failure of the community to make the local district payment for its student(s)

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enrolled in a charter public school, Davies, and/or the Met Center may result in the withholding

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of state education aid pursuant to section 16-7-31.

 

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     SECTION 3. 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 - SCHOOL COMMITTEES AND SUPERINTENDENTS

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     This act would require school committees to adopt a board of regents approved budget

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model to include a distinct line item for payments to charter schools. It would also require a

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report to the general assembly prepared by the department of elementary and secondary education

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which would set forth the information cited above.

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     This act would take effect upon passage.

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