2017 -- H 5890

========

LC002045

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

____________

A N   A C T

RELATING TO EDUCATION - THE EDUCATION EQUITY AND PROPERTY TAX RELIEF

ACT

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

     Date Introduced: March 09, 2017

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-7.2-6 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:

     16-7.2-6. Categorical programs, state funded expenses.

     In addition to the foundation education aid provided pursuant to § 16-7.2-3, the

permanent foundation education-aid program shall provide direct state funding for:

     (a) Excess costs associated with special education students. Excess costs are defined

when an individual special education student's cost shall be deemed to be "extraordinary".

Extraordinary costs are those educational costs that exceed the state-approved threshold based on

an amount above five times the core foundation amount (total of core-instruction amount plus

student success amount). The department of elementary and secondary education shall prorate the

funds available for distribution among those eligible school districts if the total approved costs for

which school districts are seeking reimbursement exceed the amount of funding appropriated in

any fiscal year; and the department of elementary and secondary education shall also collect data

on those educational costs that exceed the state-approved threshold based on an amount above

four (4) times the core-foundation amount.

     (b) Career and technical education costs to help meet initial investment requirements

needed to transform existing, or create new, comprehensive, career and technical education

programs and career pathways in critical and emerging industries and to help offset the higher-

than-average costs associated with facilities, equipment maintenance and repair, and supplies

necessary for maintaining the quality of highly specialized programs that are a priority for the

state. The department shall develop criteria for the purpose of allocating any and all career and

technical education funds as may be determined by the general assembly on an annual basis. The

department of elementary and secondary education shall prorate the funds available for

distribution among those eligible school districts if the total approved costs for which school

districts are seeking reimbursement exceed the amount of funding available in any fiscal year;

     (c) Programs to increase access to voluntary, free, high-quality pre-kindergarten

programs. The department shall recommend criteria for the purpose of allocating any and all early

childhood program funds as may be determined by the general assembly;

     (d) Central Falls, Davies, and the Met Center Stabilization Fund is established to assure

that appropriate funding is available to support their students. Additional support for Central Falls

is needed due to concerns regarding the city's capacity to meet the local share of education costs.

This fund requires that education aid calculated pursuant to § 16-7.2-3 and funding for costs

outside the permanent foundation education-aid formula, including, but not limited to,

transportation, facility maintenance, and retiree health benefits shall be shared between the state

and the city of Central Falls. The fund shall be annually reviewed to determine the amount of the

state and city appropriation. The state's share of this fund may be supported through a reallocation

of current state appropriations to the Central Falls school district. At the end of the transition

period defined in § 16-7.2-7, the municipality will continue its contribution pursuant to § 16-7-24.

Additional support for the Davies and the Met Center is needed due to the costs associated with

running a stand-alone high school offering both academic and career and technical coursework.

The department shall recommend criteria for the purpose of allocating any and all stabilization

funds as may be determined by the general assembly; and

     (e) Excess costs associated with transporting students to out-of-district non-public

schools and within regional school districts. (1) This fund will provide state funding for the costs

associated with transporting students to out-of-district non-public schools, pursuant to chapter

21.1 of title 16. The state will assume the costs of non-public out-of-district transportation for

those districts participating in the statewide system; and (2) This fund will provide direct state

funding for the excess costs associated with transporting students within regional school districts,

established pursuant to chapter 3 of title 16. This fund requires that the state and regional school

district share equally the student transportation costs net any federal sources of revenue for these

expenditures. The department of elementary and secondary education shall prorate the funds

available for distribution among those eligible school districts if the total approved costs for

LC002045 - Page 2 of 5

which school districts are seeking reimbursement exceed the amount of funding available in any

fiscal year.

     (f) Public school districts that are regionalized shall be eligible for a regionalization

bonus as set forth below.

     (1) As used herein, the term "regionalized" shall be deemed to refer to a regional school

district established under the provisions of chapter 3 of title 16 including the Chariho Regional

School district.

     (2) For those districts that are regionalized as of July 1, 2010, the regionalization bonus

shall commence in FY 2012. For those districts that regionalize after July 1, 2010, the

regionalization bonus shall commence in the first fiscal year following the establishment of a

regionalized school district as set forth in chapter 3 of title 16, including the Chariho Regional

School District.

     (3) Commencing in FY 2018, the The regionalization bonus in the first fiscal year shall

be two percent (2.0%) of the state's share of the foundation education aid for the regionalized

district as calculated pursuant to §§ 16-7.2-3 and 16-7.2-4 in that fiscal year.

     (4) The regionalization bonus in the second fiscal year shall be one percent (1.0%) of the

state's share of the foundation education aid for the regionalized district as calculated pursuant to

§§ 16-7.2-3 and 16-7.2-4 in that fiscal year.

     (5) The regionalization bonus shall cease in the third fiscal year.

     (6) The regionalization bonus for the Chariho regional school district shall be applied to

the state share of the permanent foundation education aid for the member towns.

     (7) The department of elementary and secondary education shall prorate the funds

available for distribution among those eligible regionalized school districts if the total, approved

costs for which regionalized school districts are seeking a regionalization bonus exceed the

amount of funding appropriated in any fiscal year.

     (g) Additional state support for English learners (EL). For FY 2017 only, the amount to

support EL students shall be determined by multiplying an EL factor of ten percent (10%) by the

core-instruction per-pupil amount defined in § 16-7.2-3(a)(1) and applying that amount of

additional state support to EL students identified using widely adopted, independent standards

and assessments identified by the Commissioner. All categorical funds distributed pursuant to this

subsection must be used to provide high-quality, research-based services to EL students and

managed in accordance with requirements set forth by the commissioner of elementary and

secondary education. The department of elementary and secondary education shall collect

performance reports from districts and approve the use of funds prior to expenditure. The

LC002045 - Page 3 of 5

department of elementary and secondary education shall ensure the funds are aligned to activities

that are innovative and expansive and not utilized for activities the district is currently funding.

The department of elementary and secondary education shall prorate the funds available for

distribution among eligible recipients if the total calculated costs exceed the amount of funding

available in any fiscal year.

     (h) Categorical programs defined in (a) through (f) shall be funded pursuant to the

transition plan in § 16-7.2-7.

     SECTION 2. This act shall take effect upon passage.

========

LC002045

========

LC002045 - Page 4 of 5

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION - THE EDUCATION EQUITY AND PROPERTY TAX RELIEF

ACT

***

     This act would revise the timing and process for calculating a foundation education aid

bonus to regionalized school districts. The act would provide for a two percent (2%)

regionalization bonus to all regionalized school districts commencing in Fiscal Year 2018. This

act would also remove the language which provides for the reduction and elimination of the

bonus to regionalized school districts over a two (2) year period.

     This act would take effect upon passage.

========

LC002045

========

LC002045 - Page 5 of 5