2016 -- S 2637

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LC004281

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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 -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

     Introduced By: Senators Pearson, and Picard

     Date Introduced: February 25, 2016

     Referred To: Senate 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 effective with the fiscal year beginning July 1, 2016, LEA's for whom

the calculated education aid pursuant to §16-7.2-3 is more than the education aid it is receiving as

of the effective date of the formula, the transition plan shall be accelerated so that such districts

receive one hundred percent (100%) of the amount of the appropriation of education aid due

under the formula. Provided, further, that, for any municipality receiving additional education aid

through this acceleration of the transition plan, and which the municipality spends more than the

average per pupil spending in the state, then that municipality may elect to reduce its local

maintenance of effort payments up to the amount of additional funding being received by the

municipality through this acceleration.

     (3) Districts receiving less than the education aid the LEA is receiving as of the effective

date of the formula shall remain on the ten (10) year transition plan.

     (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 accelerate the transition plan for calculation of state aid to education. The

act specifically accelerates the amounts paid to those local educational agencies which receive

more than the education aid the LEA was receiving as of the effective date of the school funding

formula, but keeps the transition plan in place for those districts receiving less education aid.

     This act would take effect upon passage.

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