2016 -- H 8006

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LC005548

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO EDUCATION - COMMUNITY REQUIREMENTS - ADEQUATE MINIMUM

BUDGET PROVISION

     Introduced By: Representatives Chippendale, Winfield, and Keable

     Date Introduced: March 25, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-7-23 of the General Laws in Chapter 16-7 entitled "Foundation

Level School Support [See Title 16 Chapter 97 - The Rhode Island Board Of Education Act]" is

hereby amended to read as follows:

     16-7-23. Community requirements -- Adequate minimum budget provision. -- (a)

The school committee's budget provisions of each community for current expenditures in each

budget year shall provide for an amount from all sources sufficient to support the basic program

and all other approved programs shared by the state. Each community shall contribute local funds

to its school committee in an amount not less than its local contribution for schools in the

previous fiscal year except to the extent permitted by §§ 16-7-23.1 and 16-7-23.2. Provided, that

for the fiscal years 2010 and 2011 each community shall contribute to its school committee in an

amount not less than ninety-five percent (95.0%) of its local contribution for schools for the fiscal

year 2009. Calculation of the annual local contribution shall not include Medicaid revenues

received by the municipality or district pursuant to chapter 8 of title 40. A community which has

a decrease in enrollment may compute maintenance of effort on a per pupil rather than on an

aggregate basis when determining its local contribution; furthermore, a community which

experiences a nonrecurring expenditure for its schools may deduct the nonrecurring expenditure

in computing its maintenance of effort. The deduction of nonrecurring expenditures shall be with

the approval of the commissioner. Provided, however, that notwithstanding any provision of this

title to the contrary, debt service that is no longer carried on the books of any school district shall

not be included in any school districts' annual budget, nor shall non-recurring debt service be

included in maintenance of effort as set forth in this chapter, nor shall any non-recruiting non-

recurring debt service be included, nor shall any non-recurring capital expenses, as defined in the

Governmental Accounting, Auditing, and Financial Reporting Blue Book, 20th Edition, be

included in the operating annual budget or in the maintenance of effort of any school district. For

the purposes set forth above non-recurring capital lease payments shall be considered non-

recurring debt service. The courts of this state shall enforce this section by means of injunctive

relief.

      (b) Whenever any state funds are appropriated for educational purposes, the funds shall

be used for educational purposes only and all state funds appropriated for educational purposes

must be used to supplement any and all money allocated by a city or town for educational

purposes and, in no event, shall state funds be used to supplant, directly or indirectly, any money

allocated by a city or town for educational purposes. All state funds shall be appropriated by the

municipality to the school committee for educational purposes in the same fiscal year in which

they are appropriated at the state level even if the municipality has already adopted a school

budget. All state and local funds unexpended by the end of the fiscal year of appropriation shall

remain a surplus of the school committee and shall not revert to the municipality. Any surplus of

state or local funds appropriated for educational purposes shall not in any respect affect the

requirement that each community contribute local funds in an amount not less than its local

contribution for schools in the previous fiscal year, subject to subsection (a) of this section, and

shall not in any event be deducted from the amount of the local appropriation required to meet the

maintenance of effort provision in any given year.

     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 - COMMUNITY REQUIREMENTS - ADEQUATE MINIMUM

BUDGET PROVISION

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     This act would provide that any non-recurring capital expenses shall not be included in

the annual budget or in the maintenance of effort of any school district.

     This act would take effect upon passage.

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