2023 -- S 0254

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LC001014

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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 --THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

     Introduced By: Senators Gu, Kallman, Murray, Zurier, Sosnowski, Euer, Mack, Britto,
Cano, and DiPalma

     Date Introduced: February 16, 2023

     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.” By October 1, 2022, as part of its budget

submission pursuant to § 35-3-4 relative to state fiscal year 2024 and thereafter, the department of

elementary and secondary education shall develop and utilize a poverty measure that in the

department’s assessment most accurately serves as a proxy for the poverty status referenced in this

subsection and does not rely on the administration of school nutrition programs. The department

shall utilize this measure in calculations pursuant to this subsection related to the application of the

student success factor, in calculations pursuant to § 16-7.2-4 related to the calculation of the state

share ratio, and in the formulation of estimates pursuant to subsection (b) below. The department

may also include any recommendations which seek to mitigate any disruptions associated with the

implementation of this new poverty measure or improve the accuracy of its calculation.

     (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.

     (f) 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

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levels.

     (a) Effective January 1, 2024, 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, 2024, 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 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 by two percent (2%) for every one percent (1%) by which the community exceeds its

requirement 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, 2024.

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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 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, 2024.

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