2015 -- H 5540

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LC001344

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO EDUCATION - THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

     Introduced By: Representatives Reilly, Edwards, Ruggiero, and Canario

     Date Introduced: February 25, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-7.2-7 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:

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

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

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

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

of the formula, and ten (10) years for LEA's for whom the calculated education aid pursuant to §

16-7.2-3 is less than the education aid the LEA is receiving as of the effective date of the formula.

     (2) Provided, that for the fiscal year commencing July 1, 2015, a floor shall be

established for the education aid provided pursuant to this chapter to the towns of Middletown

and Portsmouth. For such towns, the floor shall be equal to the amount of education aid provided

in the fiscal year immediately preceding the implementation of the permanent foundation

education aid funding formula established pursuant to §16-7.2-3. Permanent foundation education

aid to the towns of Middletown and Portsmouth shall not be reduced from this amount without

further action of the general assembly. Provided, there shall not be any retroactive payments to

the towns of Middletown and Portsmouth for any fund reductions which occurred in the

intervening years between the implementation of the permanent foundation education aid funding

formula and June 30, 2015.

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

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

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

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

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

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

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

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

      (c) For districts that are converting from a half-day to a full-day kindergarten program

for the 2014-2015 school year and after, as defined by § 16-99-4, the increase in aid provided

pursuant to the formula for the increased reference average daily membership due to the

conversion of the kindergarten students from 0.5 full-time equivalent to 1.0 full-time equivalent is

not subject to the transition plan in subsection (a); instead, the increased kindergarten full-time

equivalents will be funded at the fully transitioned value of the formula beginning in FY 2017.

     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

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     This act would restore the amount of education aid given to the towns of Middletown and

Portsmouth to those amounts and levels in effect for the fiscal year prior to the implementation of

the permanent foundation education aid formula.

     This act would take effect upon passage.

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