2017 -- S 0568

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LC001647

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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-FOUNDATION LEVEL SCHOOL SUPPORT

     Introduced By: Senators DiPalma, Pearson, Doyle, and Seveney

     Date Introduced: March 15, 2017

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-7-23 of the General Laws in Chapter 16-7 entitled "Foundation

Level School Support [See Title 16 Chapter 97 - The Rhode Island Board Of Education Act]" is

hereby amended to read as follows:

     16-7-23. Community requirements -- Adequate minimum budget provision.

     (a) The school committee's budget provisions of each community for current

expenditures in each budget year shall provide for an amount from all sources sufficient to

support the basic program and all other approved programs shared by the state. Effective in fiscal

year 2018 and except to the extent permitted by §§16-7-23.1 and 16-7-23.2, Each each

community shall contribute local funds to its school committee the greater of the following two

(2) amounts:

     (1) in an amount not less than its The local contribution for schools in the previous fiscal

year except to the extent permitted by §§ 16-7-23.1 and 16-7-23.2. Provided, that for the fiscal

years 2010 and 2011 each community shall contribute to its school committee in an amount not

less than ninety-five percent (95.0%) of its increased in accordance with the CPI-U measure from

the most recent state fiscal year; or

     (2) The local contribution for schools for the fiscal year 2009 in the previous fiscal year

increased on a per pupil basis for each additional pupil when average daily membership as

defined in §16-7-16(2) increases by at least one percent (1%) for two (2) consecutive years.

(b) Calculation of the annual local contribution shall not include Medicaid revenues

received by the municipality or district pursuant to chapter 8 of title 40. A community which has

a decrease in enrollment may compute maintenance of effort on a per pupil rather than on an

aggregate basis when determining its local contribution but must still adjust its net contribution

after the deduction for enrollment decline by the most recent state fiscal year CPI-U increase;.

Furthermore, a community which experiences a nonrecurring expenditure for its schools may

deduct the nonrecurring expenditure in computing its maintenance of effort. The deduction of

nonrecurring expenditures shall be with the approval of the commissioner. Provided, however,

that notwithstanding any provision of this title to the contrary, debt service that is no longer

carried on the books of any school district shall not be included in any school districts' annual

budget, nor shall non-recurring debt service be included in maintenance of effort as set forth in

this chapter, nor shall any non-recruiting nonrecurring debt service be included in the operating

budget of any school district. For the purposes set forth above non-recurring capital lease

payments shall be considered non-recurring debt service. The courts of this state shall enforce this

section by means of injunctive relief.

     (b)(c) Whenever any state funds are appropriated for educational purposes, the funds

shall be used for educational purposes only and all state funds appropriated for educational

purposes must be used to supplement any and all money allocated by a city or town for

educational purposes and, in no event, shall state funds be used to supplant, directly or indirectly,

any money allocated by a city or town for educational purposes. All state funds shall be

appropriated by the municipality to the school committee for educational purposes in the same

fiscal year in which they are appropriated at the state level even if the municipality has already

adopted a school budget. All state and local funds unexpended by the end of the fiscal year of

appropriation shall remain a surplus of the school committee and shall not revert to the

municipality. Any surplus of state or local funds appropriated for educational purposes shall not

in any respect affect the requirement that each community contribute local funds in an amount not

less than its local contribution for schools in the previous fiscal year, subject to determined by

subsection (a) of this section, and shall not in any event be deducted from the amount of the local

appropriation required to meet the maintenance of effort provision in any given year.

     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-FOUNDATION LEVEL SCHOOL SUPPORT

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     This act would amend the maintenance of effort provisions to require that local aid be

determined by the amount of the previous year's aid, plus inflation or the local contribution for

schools for the previous fiscal year plus and increase on a per pupil basis for each additional pupil

when average daily membership increases by at least one percent (1%) for two (2) consecutive

years.

     This act would take effect upon passage.

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LC001647

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