2019 -- H 5618

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LC000161

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO EDUCATION - THE EDUCATION EQUITY AND PROPERTY TAX RELIEF

ACT

     

     Introduced By: Representatives Morin, Phillips, Vella-Wilkinson, Casey, and Carson

     Date Introduced: February 27, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 16-7.2-3 and 16-7.2-4 of the General Laws in Chapter 16-7.2

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entitled "The Education Equity and Property Tax Relief Act" are hereby amended to read as

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follows:

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     16-7.2-3. Permanent foundation education aid established.

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     (a) Beginning in the 2012 fiscal year, the following foundation education-aid formula

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shall take effect. The foundation education aid for each district shall be the sum of the core

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instruction amount in subdivision (a)(1), and the amount to support high-need students in

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subdivision (a)(2), and the amount to support school districts in subsection (a)(3) of this section

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which shall be multiplied by the district state-share ratio calculated pursuant to § 16-7.2-4 to

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determine the foundation aid.

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     (1) The core-instruction amount shall be an amount equal to a statewide, per-pupil core-

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instruction amount as established by the department of elementary and secondary education,

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derived from the average of northeast regional expenditure data for the states of Rhode Island,

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Massachusetts, Connecticut, and New Hampshire from the National Center for Education

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Statistics (NCES) that will adequately fund the student instructional needs as described in the

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basic education program and multiplied by the district average daily membership as defined in §

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16-7-22. Expenditure data in the following categories: instruction and support services for

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students, instruction, general administration, school administration, and other support services

 

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from the National Public Education Financial Survey, as published by NCES, and enrollment data

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from the Common Core of Data, also published by NCES, will be used when determining the

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core-instruction amount. The core-instruction amount will be updated annually. For the purpose

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of calculating this formula, school districts' resident average daily membership shall exclude

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charter school and state-operated school students.

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     (2) The amount to support high-need students beyond the core-instruction amount shall

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be determined by multiplying a student success factor of forty percent (40%) by the core

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instruction per-pupil amount described in subdivision (a)(1) and applying that amount for each

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resident child whose family income is at or below one hundred eighty-five percent (185%) of

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federal poverty guidelines, hereinafter referred to as "poverty status."

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     (3) The amount to support school districts with students residing in housing taxed in

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accordance with § 44-5-13.11, shall be determined by multiplying a housing factor of forty

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percent (40%) by the core instruction per pupil amount described in § 16-7.2-3(a)(1), and

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applying that amount to all resident children residing in housing taxed in accordance with § 44-5-

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13.11.

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     (b) The department of elementary and secondary education shall provide an estimate of

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the foundation education aid cost as part of its budget submission pursuant to § 35-3-4. The

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estimate shall include the most recent data available as well as an adjustment for average daily

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membership growth or decline based on the prior year experience.

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     (c) In addition, the department shall report updated figures based on the average daily

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membership as of October 1 by December 1.

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     (d) Local education agencies may set aside a portion of funds received under subsection

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(a) to expand learning opportunities such as after school and summer programs, full-day

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kindergarten and/or multiple pathway programs, provided that the basic education program and

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all other approved programs required in law are funded.

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     (e) The department of elementary and secondary education shall promulgate such

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regulations as are necessary to implement fully the purposes of this chapter.

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     16-7.2-4. Determination of state's share.

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     (a) For each district, the state's share of the foundation education aid calculated pursuant

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to § 16-7.2-3(a) shall use a calculation that considers a district's revenue-generating capacity and

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concentration of high-need students. The calculation is the square root of the sum of the state-

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share ratio for the community calculation, pursuant to § 16-7-20, plus the percentage of students

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residing in housing taxed in accordance with § 44-5-13.11 squared, squared plus the district's

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percentage of students in grades PK-6 in poverty status squared, divided by two.

 

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     (b) For purposes of determining the state's share, school district student data used in this

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calculation shall include charter school and state school students. These ratios are used in the

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permanent foundation education aid formula calculation described in § 16-7.2-5.

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     SECTION 2. This act shall take effect upon passage and shall apply to all school years

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commencing on or after July 1, 2019.

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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 amend the calculation of the permanent foundation education aid to

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school districts, and would make an adjustment based upon students residing in qualified low-

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income housing.

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     This act would take effect upon passage and would apply to all school years commencing

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on or after July 1, 2019.

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