2017 -- S 0252

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LC000606

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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: Senators Pearson, and Picard

     Date Introduced: February 15, 2017

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-7.2-5 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:

     16-7.2-5. Charter public schools, the William M. Davies, Jr. Career and Technical

High School, and the Metropolitan Regional Career and Technical Center.

     (a) Charter public schools, as defined in chapter 77 of this title, the William M. Davies,

Jr. Career and Technical High School (Davies), and the Metropolitan Regional Career and

Technical Center (the Met Center) shall be funded pursuant to § 16-7.2-3. If the October 1 actual

enrollment data for any charter public school shows a ten percent (10%) or greater change from

the prior year enrollment which is used as the reference year average daily membership, the last

six (6) monthly payments to the charter public school will be adjusted to reflect actual enrollment.

The state share of the permanent foundation education aid shall be paid by the state directly to the

charter public schools, Davies, and the Met Center pursuant to § 16-7.2-9 and shall be calculated

using the state-share ratio of the district of residence of the student as set forth in § 16-7.2-4. The

department of elementary and secondary education shall provide the general assembly with the

calculation of the state share of permanent foundation education aid for charter public schools

delineated by school district.

     (b) The local share of education funding shall be paid to the charter public school,

Davies, and the Met Center by the district of residence of the student and shall be the local, per-

pupil cost calculated by dividing the local appropriation to education from property taxes, net of

debt service, and capital projects, as defined in the uniform chart of accounts by the average daily

membership for each city and town, pursuant to § 16-7-22, for the reference year.

     (c) Beginning in FY 2017, there shall be a reduction to the local per pupil funding paid by

the district of residence to charter public schools, Davies, and the Met Center. This reduction

shall be equal to the greater (i) Of seven percent (7%) of the local, per-pupil funding of the

district of residence pursuant to subsection (b) or (ii) The per-pupil value of the district's costs for

non-public textbooks, transportation for non-public students, retiree health benefits, out-of-district

special-education tuition and transportation, services for students age eighteen (18) to twenty-one

(21) years old, pre-school screening and intervention, and career and technical education, tuition

and transportation costs, debt service, and rental costs, and an additional reduction to payments to

mayoral academies with teachers who do not participate in the state teachers' retirement system

under chapter 8 of title 36 equal to the per-pupil value of teacher retirement costs attributable to

unfunded liability as calculated by the state's actuary for the prior preceding fiscal year, minus the

average expenses incurred by charter schools for those same categories of expenses as reported in

the uniform chart of accounts for the prior preceding fiscal year pursuant to § 16-7-16(11) and

verified by the department of elementary and secondary education. In the case where audited

financials result in a change in the calculation after the first tuition payment is made, the

remaining payments shall be based on the most recent audited data. For those districts whose

greater reduction occurs under the calculation of (ii), there shall be an additional reduction to

payments to mayoral academies with teachers who do not participate in the state teacher's

retirement system under chapter 8 of title 36 equal to the per-pupil value of teacher retirement

costs attributable to unfunded liability as calculated by the state's actuary for the prior preceding

fiscal year.

     (d) Local district payments to charter public schools, Davies, and the Met Center for each

district's students enrolled in these schools shall be made on a quarterly basis in July, October,

January, and April; however, the first local-district payment shall be made by August 15, instead

of July. Failure of the community to make the local-district payment for its student(s) enrolled in

a charter public school, Davies, and/or the Met Center may result in the withholding of state

education aid pursuant to § 16-7-31.

     (e) Beginning in FY 2017, school districts with charter public school, Davies, and the

Met Center enrollment, that, combined, comprise five percent (5%) or more of the average daily

membership as defined in § 16-17-22, shall receive additional aid for a period of three (3) years.

Aid in FY 2017 shall be equal to the number of charter public school, open-enrollment schools,

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Davies, or the Met Center students as of the reference year as defined in § 16-7-16 times a per-

pupil amount of one hundred seventy-five dollars ($175). Aid in FY 2018 shall be equal to the

number of charter public school, open-enrollment schools, Davies, or the Met Center students as

of the reference year as defined in § 16-7-16 times a per-pupil amount of one hundred dollars

($100). Aid in FY 2019 shall be equal to the number of charter public school, open-enrollment

schools, Davies, or the Met Center students as of the reference year as defined in § 16-7-16 times

a per-pupil amount of fifty dollars ($50.00). The additional aid shall be used to offset the adjusted

fixed costs retained by the districts of residence.

     SECTION 2. This act shall take effect upon passage.

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LC000606

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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 adjust the charter school tuition hold back provision in last year's budget

by allowing the school districts to choose between withholding seven percent (7%) or the

difference in unique costs.

     This act would take effect upon passage.

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