2017 -- H 5753

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LC001928

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

     Introduced By: Representatives Marshall, Price, Filippi, Chippendale, and Donovan

     Date Introduced: March 01, 2017

     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, 2017, a financial floor shall be

established for the education aid provided pursuant to this chapter to any regional school district

established pursuant to the provisions of chapter 3 of this title and when the district's calculated

education aid pursuant to §16-7.2-3 is less than the education aid the regional district was

receiving as of the effective date of the formula. For such regional school districts, the financial

floor shall be equal to the amount provided in the immediately preceding fiscal year (FY 2017).

Any reduction in education aid provided to such regional school districts through the transition

plan provided for herein shall be locked at the rate and amounts of fiscal year 2017. For all fiscal

years commencing on or after July 1, 2017, such regional school districts shall not be subject to

any further reductions in education aid over the ten (10) year period provided for in subsection

(a)(1) of this section, or at any time thereafter, without further action of the general assembly,

notwithstanding the calculations established pursuant to §16-7.2-3.

     (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 limit the reduction in education aid pursuant to the education aid formula

for all regional school districts that receive less aid under the new school funding formula. The

reduction would be limited to the amount of aid provided for in Fiscal Year 2017. For all fiscal

years commencing on or after July 1, 2017, the regional school districts which received less aid

would not be subject to any further reductions in education aid over the remaining portion of the

ten (10) year phase-in period provided for by the education aid formula.

     This act would take effect upon passage.

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