2023 -- H 5792

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LC001813

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

     RELATING TO EDUCATION -- FOUNDATION LEVEL SCHOOL SUPPORT

     Introduced By: Representatives Cortvriend, Finkelman, McGaw, Abney, Tanzi, Fogarty,
Caldwell, Boylan, Edwards, and Carson

     Date Introduced: February 22, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 16-7-39 and 16-7-40 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]" are hereby amended to read as follows:

     16-7-39. Computation of school housing-aid ratio.

     For each community, the percent of state aid for school housing costs shall be computed in

the following manner:

     (1) The adjusted equalized weighted assessed valuation for the district is divided by the

resident average daily membership for the district (grades twelve (12) and below); (2) The adjusted

equalized weighted assessed valuation for the state is divided by the resident average daily

membership for the state (grades twelve (12) and below); (1) is then divided by (2) and the resultant

ratio is multiplied by a factor currently set at sixty-two percent (62%) which represents the

approximate average district share of school support; the resulting product is then subtracted from

one hundred percent (100%) to yield the housing aid share ratio, provided that in no case shall the

ratio be less than thirty percent (30%). Provided, that effective July 1, 2010, and annually at the

start of each fiscal year thereafter, the thirty percent (30%) floor on said housing-aid share shall be

increased by five percent (5%) increments each year until said floor on the housing-aid share ratio

reaches a minimum of not less than forty percent (40%). This provision shall apply only to school

housing projects completed after June 30, 2010, that received approval from the board of regents

prior to June 30, 2012. Provided further, for the fiscal year beginning July 1, 2012, and for

subsequent fiscal years, the minimum housing aid share shall be thirty-five percent (35%) for all

projects receiving council on elementary and secondary education approval after June 30, 2012.

The resident average daily membership shall be determined in accordance with § 16-7-22(1).

Provided further, that effective July 1, 2023, and for subsequent fiscal years, the minimum housing

aid share ratio shall be forty percent (40%) for all local education agencies.

     (2) No district shall receive a combined total of more than twenty (20) incentive percentage

points for projects that commence construction by December 30, 2023, and five (5) incentive points

for projects that commence construction thereafter; provided further, these caps shall be in addition

to amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2). Furthermore, a district’s share shall

not be decreased by more than half of its regular share irrespective of the number of incentive points

received nor shall a district’s state share increase by more than half of its regular share, including

amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2), irrespective of the number of incentive

points received.

     16-7-40. Increased school housing ratio.

     (a)(1) In the case of regional school districts, the school housing aid ratio shall be increased

by two percent (2%) for each grade so consolidated.

     (2) Regional school districts undertaking renovation project(s) shall receive an increased

share ratio of four percent (4%) for those specific project(s) only, in addition to the combined share

ratio calculated in § 16-7-39 and this subsection.

     (b) In the case of projects undertaken by districts specifically for the purposes of school

safety and security, the school housing aid share ratio shall be increased by five percent (5%) for

these specific projects only, in the calculation of school housing aid. The increased share ratio shall

continue to be applied for as long as the project(s) receives state housing aid. In order to qualify for

the increased share ratio, seventy-five percent (75%) of the project costs must be specifically

directed to school safety and security measures. The council on elementary and secondary

education shall promulgate rules and regulations for the administration and operation of this

section.

     (c) For purposes of addressing health and safety deficiencies as defined by the school

building authority, including the remediation of hazardous materials, the school housing aid ratio

shall be increased by five percent (5%) so long as the construction of the project commences by

December 30, 2023 June 30, 2024, is completed by December 30, 2028, and a two hundred fifty

million dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot.

In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a

minimum of five hundred thousand dollars ($500,000) must be specifically directed to this purpose.

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     (d) For purposes of educational enhancement, including projects devoted to the

enhancement of early childhood education and career and technical education, the school housing

aid ratio shall be increased by five percent (5%) so long as construction of the project commences

by December 30, 2023 June 30, 2024, is completed by December 30, 2028, and a two hundred fifty

million dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot.

In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a

minimum of five hundred thousand dollars ($500,000) must be specifically directed to these

purposes.

     (e) For replacement of a facility that has a facilities condition index of sixty-five percent

(65%) or higher, the school housing ratio shall be increased by five percent (5%) so long as

construction of the project commences by December 30, 2023 June 30, 2024, is completed by

December 30, 2028, does not receive a bonus pursuant to subsection (f) or subsection (g), and a

two hundred fifty million dollar ($250,000,000) general obligation bond is approved on the

November 2018 ballot. In order to qualify for the increased share ratio, twenty-five percent (25%)

of the project costs or a minimum of five hundred thousand dollars ($500,000) must be specifically

directed to this purpose.

     (f) For any new construction or renovation that increases the functional utilization of any

facility from less than sixty percent (60%) to more than eighty percent (80%), including the

consolidation of school buildings within or across districts, the school housing aid ratio shall be

increased by five percent (5%) so long as construction of the project commences by December 30,

2023 June 30, 2024, is completed by December 30, 2028, and a two hundred fifty million dollar

($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to

qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum

of five hundred thousand dollars ($500,000) must be specifically directed to this purpose.

     (g) For any new construction or renovation that decreases the functional utilization of any

facility from more than one hundred twenty percent (120%) to between eighty-five percent (85%)

to one hundred five percent (105%), the school housing ratio shall be increased by five percent

(5%) so long as construction of the project commences by December 30, 2023 June 30, 2024, is

completed by December 30, 2028, and a two hundred fifty million dollar ($250,000,000) general

obligation bond is approved on the November 2018 ballot. In order to qualify for the increased

share ratio, twenty-five percent (25%) of the project costs or a minimum of five hundred thousand

dollars ($500,000) must be specifically directed to this purpose.

     (h) For consolidation of two (2) or more school buildings, within or across districts into

one school building, the school housing aid ratio shall be increased by five percent (5%) so long as

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construction of the project commences by December 30, 2023, is completed by December 30, 2028,

a two hundred fifty million dollar ($250,000,000) general obligation bond is approved on the

November 2018 ballot, and does not receive a bonus pursuant to subsection (f) or subsection (g).

In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a

minimum of five hundred thousand dollars ($500,000) must be specifically directed to this purpose.

     (i) Any regionalized and/or non-regionalized school district receiving an increased share

ratio for a project approved prior to July 1, 2018, shall continue to receive the increased share ratio

for as long as the project receives state housing aid.

     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

***

     This act would amend the computation of school housing-aid for school housing projects

and would provide that construction of certain projects commence in June, 2024, rather than

December, 2023 in order to align such projects with the fiscal year.

     This act would take effect upon passage.

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