2019 -- S 0434

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LC001596

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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 - LOW- AND MODERATE-INCOME HOUSING

     Introduced By: Senators Euer, Murray, Goodwin, Crowley, and Nesselbush

     Date Introduced: February 27, 2019

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-7.2-3 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:

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

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

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

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

subdivision (a)(2), which shall be multiplied by the district state-share ratio calculated pursuant to

§ 16-7.2-4 to determine the foundation aid.

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

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

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

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

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

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

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

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

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

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

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

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

charter school and state-operated school students.

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

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

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

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

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

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

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

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

membership growth or decline based on the prior year experience.

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

membership as of October 1 by December 1.

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

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

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

all other approved programs required in law are funded.

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

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

     (d) The provisions of § 45-53-10 shall be applied after the yearly amount of education aid

provided for under subsection (a) of this section is calculated.

     SECTION 2. Chapter 45-53 of the General Laws entitled "Low and Moderate Income

Housing" is hereby amended by adding thereto the following section:

     45-53-10. Education aid to be indexed to achieving low- and moderate-income

housing levels.

     (a) Effective January 1, 2020, a community's receipt of permanent foundation education

aid pursuant to chapter 7.2 of title 16 shall be indexed to a municipality's ability to successfully

meet its low- and moderate-income housing goals as provided for in this chapter, in the following

manner:

     (1) For purposes of this section, commencing on January 1, 2020, and for each successive

year thereafter, every community shall have a five (5) year period to meet the goal of ten percent

(10%) of the year-round units or, in the case of certain urban towns or cities, fifteen percent

(15%) of the occupied rental housing units as being low- and moderate-income housing, as

provided for in § 45-53-3. If a community's minimum percentage requirements of low- or

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moderate-income housing are adjusted by statute, then the provisions of this section shall be

indexed and tied to those adjustments such that whether a community's education aid is increased

or decreased will be dependent upon the adjusted minimum amount of low- and moderate-income

housing that is required;

     (2) After the five (5) year period provided for in subsection (a)(1) of this section, and for

each year thereafter, any community that exceeds the required minimum goals identified in

subsection (a)(1) of this section for low- and moderate-income housing shall have its education

aid increased in a percentage amount equal to the percentage by which the community exceeds its

required minimum goals of ten percent (10%) or fifteen percent (15%) whichever is applicable.

Any community which receives an increase in education aid pursuant to the provisions of this

section shall be eligible to receive increases so long as the community maintains an amount of

low- and moderate-income housing in excess of the community’s statutory minimum

requirements.

     (3) The division of planning of the department of administration shall certify to the

general assembly on or before April 1 of each year as to the percentage and amount of low- and

moderate-income housing in a municipality as of the previous year, for purposes of implementing

this section.

     (b) As used herein:

     (1) "Community" means the municipality or municipalities serviced by, a part of, or in a

given school district.

     (2) "Education aid" means the permanent foundation education aid received by each

school district established pursuant to the provisions of chapter 7.2 of title 16, the ("education

equity and property tax relief act").

     SECTION 3. This act shall take effect on January 1, 2020.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION - LOW- AND MODERATE-INCOME HOUSING

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     This act would provide for increases in the amount of foundation level school support

that a community would receive, based upon a community's ability to meet and surpass its

minimum low- and moderate-income housing requirements.

     This act would take effect on January 1, 2020.

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