2018 -- H 8099

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LC005449

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT -- SCHOOL FUNDING FORMULA

     Introduced By: Representatives Tanzi, Fogarty, and McEntee

     Date Introduced: April 13, 2018

     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) 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.

     (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.

     (d) Notwithstanding the provisions of subsection (a) of this section, the general assembly

recognizes that the LEA's for whom the calculated education aid pursuant to § 16-7.2-3 is less

than the education aid the LEA was receiving as of the effective date of the formula has been

unduly burdensome on said LEA's. Therefore, for the fiscal years 2019, 2020, and 2021, the

calculated education aid pursuant to § 16-7.2-3 shall remain the same as in fiscal year 2018.

     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 -- SCHOOL FUNDING FORMULA

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     This act would freeze the amount of education aid for local school agencies that are

scheduled to receive less aid under the funding formula. The education aid would be frozen at the

rate provided in fiscal year 2018 for a period of three (3) years.

     This act would take effect upon passage.

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