2019 -- S 0429

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LC001779

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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: Senator Roger Picard

     Date Introduced: February 27, 2019

     Referred To: Senate 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

two (2), three (3), and 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 ensure

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;

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

schools. 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 this title. The state will assume the

costs of non-public out-of-district transportation for those districts participating in the statewide

system. 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;

     (f) Excess costs associated with transporting students within regional school districts.

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 this title. This fund

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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 which school districts are seeking reimbursement exceed

the amount of funding available in any fiscal year;

     (g) 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 this title, 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 this title, including the Chariho Regional

School District;

     (3) 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; and

     (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;

     (h) Additional state support for English learners (EL). 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

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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 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;

     (i) State support for school resource officers. For purposes of this subsection, a school

resource officer (SRO) shall be defined as a career law enforcement officer with sworn authority

who is deployed by an employing police department or agency in a community-oriented policing

assignment to work in collaboration with one or more schools. School resource officers should

have completed at least forty (40) hours of specialized training in school policing, administered

by an accredited agency, before being assigned. Beginning in FY 2019, for a period of three (3)

years, school districts or municipalities that choose to employ school resource officers shall

receive direct state support for costs associated with employing such officers at public middle and

high schools. Districts or municipalities shall be reimbursed an amount equal to one-half (1/2) of

the cost of salaries and benefits for the qualifying positions. Funding will be provided for school

resource officer positions established on or after July 1, 2018, provided that:

     (1) Each school resource officer shall be assigned to one school:

     (i) Schools with enrollments below one thousand twelve hundred (1,200) students shall

require one school resource officer;

     (ii) Schools with enrollments of one thousand twelve hundred (1,200) or more students

shall require two school resource officers;

     (2) School resource officers hired in excess of the requirement noted above shall not be

eligible for reimbursement; and

     (3) Schools that eliminate existing school resource officer positions and create new

positions under this provision shall not be eligible for reimbursement; and

     (j) Categorical programs defined in (a) through (g) shall be funded pursuant to the

transition plan in § 16-7.2-7.

     (k) Expenditures for services and instructional programs for students residing in

conventional public housing units owned by public housing authorities which are not on local tax

rolls. Payments shall be made when the services and programs have been carried out in

accordance with the requirements of state law and regulations of the state board of education.

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     (l) The following terms shall have the following meanings:

     (1) "Conventional public housing" means those properties identified as eligible low rent

housing projects under title I of Pub. L. 81-874, 20 U.S.C. 236 et seq.

     (2) "Incentive entitlement" means the sum payable to a local school district under this

formula.

     (3) "State share ratio" means the state share ratio as calculated under § 16-7.2-4.

     (i) The incentive entitlement for a district shall be the product of the average per pupil

cost for the district based upon the Uniform Chart of Accounts, the number of full-time

equivalent pupils in grade twelve (12) and below residing in conventional public housing, and the

state share ratio for the district.

     (ii) 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 reimbursements exceed the amount of funding appropriated in

any fiscal year.

     (m) In addition to the off track betting tax payable to cities and towns under §§ 41-10-

7(a)(1), 7(a)(2), and 7(a)(3), any shortfall in the funding for students residing in "conventional

public housing" as defined in this section, shall be paid by the state to the cities and towns from

those funds derived from sports-wagering revenue as set forth in § 42-61-2.5, and from profits

made by the state derived from the sale of recreational marijuana if, and when, recreational

marijuana becomes legal in this state.

     SECTION 2. Section 16-7-34.3 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 repealed.

     16-7-34.3. Reimbursement by the state for conventional public housing students.

     (a) Each school district shall be reimbursed for expenditures for services and instructional

programs for students residing in conventional public housing units owned by public housing

authorities which are not on local tax rolls. Reimbursement shall be made when the services and

programs have been carried out in accordance with the requirements of state law and regulations

of the board of regents for elementary and secondary education. The following formula shall be

used to distribute aid for the students residing in the public housing units:

     (1)(i) The following formula and definitions are to be used to determine the entitlement

for each school district:

     (ii) The incentive entitlement for a district shall be the product of the average per pupil

cost for the district, the number of full time equivalent pupils in grade 12 and below residing in

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conventional public housing, and the state share ratio for the district.

     (2) In this formula the following terms have the following meanings:

     (i) "Incentive entitlement" means the sum payable to a local school district under this

formula.

     (ii) "Average per pupil costs for the district" means all expenditures approved by the state

board of regents for elementary and secondary education as defined in § 16-7-20 plus the costs of

special education required under chapter 24 of this title divided by average daily membership of

pupils as determined in § 16-7-22(1).

     (iii) "State share ratio" means the effective state share ratio as calculated under § 16-7-20.

     (iv) "Conventional public housing" means those properties identified as eligible low rent

housing projects under title I of P.L. 81-874, 20 U.S.C. § 236 et seq.

     (b) Students living on property owned by the Rhode Island resource recovery corporation

shall also be included in computations under this section.

     (c) Students living in the North Kingstown Traveler's Aid housing project shall also be

included in computations under this section.

     (d) An amount shall be appropriated for the purpose of reimbursing school districts as

required pursuant to subsection (a) for conventional public housing.

     (e) If the sum appropriated in subsection (a) of this section is not sufficient to pay in full

the amount for conventional public housing which each city and town is entitled to receive in any

fiscal year, the maximum amount which all cities and towns are entitled to receive under this

section shall be deducted from the sum appropriated for all cities and towns under § 16-7-20. If,

after final allocation of §§ 16-7-15 through 16-7-34, a district receives more than one hundred

percent (100%) reimbursement, the excess shall be deducted from this conventional public

housing allocation in the following fiscal year.

     (f) Reimbursement payments as calculated under this chapter shall be made according to

§ 16-7-16. All payments under this chapter shall be used exclusively to support services for

conventional public housing students.

     (g) Expenditure reports shall be submitted by the local school districts to the

commissioner of elementary and secondary education in accordance with rules and regulations of

the board of regents for elementary and secondary education.

     SECTION 3. 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

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     This act would change the formula for providing state aid to students in conventional

public housing and would provide funding through gambling revenue and taxes derived from the

sale of marijuana.

     This act would take effect upon passage.

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LC001779

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