2016 -- S 2637

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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:

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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)(1) 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 § 16-7.2-3 is more than the education aid the LEA is receiving as of the effective date

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

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

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     (2) Provided, that effective with the fiscal year beginning July 1, 2016, LEA's for whom

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

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

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

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

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

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

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

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municipality through this acceleration.

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

 

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

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

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over a period not to exceed five (5) years. The transition shall provide a combination of direct aid

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to districts, funds for the categorical programs, and district savings through state-assumed costs,

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as determined by the general assembly on an annual basis. Updates to any components of the

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permanent foundation education aid formula, such as student data, property values, and/or median

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family income, that result in an increase or decrease in state education aid that impacts the total

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state and local contribution by more than three percent (3%) shall be transitioned over a period of

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time not to exceed three (3) years.

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

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

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

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

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

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

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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

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     This act would accelerate the transition plan for calculation of state aid to education. The

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

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

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

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     This act would take effect upon passage.

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