Chapter 393

2004 -- S 3182 AS AMENDED

Enacted 07/05/04

A N A C T

RELATING TO EDUCATION -- EDUCATION EQUITY AND PROPERTY TAX RELIEF

Introduced By: Senators Gallo, and Sosnowski

Date Introduced: June 10, 2004

It is enacted by the General Assembly as follows:

     SECTION 1. Title 16 of the General Laws entitled "Education" is hereby amended by

adding thereto the following chapter:

CHAPTER 7.2

THE EDUCATION EQUITY AND PROPERTY TAX RELIEF ACT

16-7.2-1. Legislative findings. – (a) The general assembly recognizes the need for an

equitable distribution of resources among the state's school districts, property tax relief and a

predicable method of distributing education aid. The general assembly finds that there is a need

to reform the way public education is financed because:

(1)_All children should have access to an adequate and meaningful education regardless

of their residence or economic means;

(2) A school funding system should treat property taxpayers equably, limit the portion of

school budgets financed by property taxes, and establish sufficient cost controls on school

spending;

(3) The state should ensure that its school funding structure adequately reflects the

different needs of students, and closes the educational inequities among the state's school

districts; and

(4) The state education funding system should provide a predicable amount and source of

funding to ensure stability in the funding of schools.

(b) The intent of this chapter is to promote a school finance system in Rhode Island that

is predicated on student need and taxpayer ability to pay. A new school funding system in the

state should promote educational equity for all students and reduce the reliance on the property

tax to fund public education. This legislation is intended to ensure educational opportunity to

each pupil in each city or town on substantially equal terms. Adequate per pupil support will be

provided through a combination of state school aid and local education property tax levies.

16-7.2-2. Joint legislative committee to establish a permanent education foundation

aid formula for Rhode Island. – (a) There is hereby established a joint legislative committee to

develop a basic foundation support program and an appropriate transition plan to fully implement

a new funding system.

The committee shall consist of ten (10) members, five (5) of which shall be appointed by

the speaker of the house, one of which shall be from the minority party, and five (5) members

appointed by the president of the senate, one of which shall be from the minority party. The

speaker of the house and president of the senate shall each appoint a committee co-chair.

The joint legislative committee is directed to consider the following framework in

developing a new education foundation support program:

(1) A state education funding formula that is student population and needs driven.

Student counts should include enrollments, students eligible for free and reduced lunch, those

participating in language assistance programs, and special education. Provisions should be made

for those school districts that experience declining enrollments.

(2) The accounting for "extraordinary special education expenditures" in special

education spending for one child in a given fiscal year.

(3) A per pupil foundation amount to be used in the calculation of school funding. The

per pupil foundation amount should be based on what the cost is to provide an equitable and

adequate education, and consider various cost factors, such as pupil-teacher ratios, teacher and

staff compensation, technology investments, educational supplies, teacher training and

professional development, student performance assessments, curriculum offerings and support

services and other costs associated with the delivery of educational services.

(4) Per pupil cost, based on a least cost option plan to provide purchase of service

contracts in areas such as equipment, repair, benefits, transportation, general purchasing, capital

construction, data processing and health and other insurance programs. In addition, the

department of education should assist regional collaboratives in identifying opportunities to

maximize multiple school district participation for "high cost" programs.

(5) Various methods of funding the system.

(6) A transition education funding plan.

(b) The speaker of the house and president of the senate, in consultation with the

committee co-chairs, are hereby directed to appoint a foundation aid technical advisory group,

and a property tax relief technical advisory group.

(c) The foundation aid technical advisory group shall advise and assist the committee in

recommending foundation aid amounts by: (1) identifying specific resources and least cost

options to provide every child the opportunity to necessary educational opportunities to meet

education performance standards; and (2) systematically calculating the amount of per pupil

funding necessary to support an effective and efficient educational system. The group may create

task forces to consider the needs of special populations, comprehensive education programs, and

noneducational support activities, composed of experts in these areas. In developing a foundation

aid amount, the group shall consider, among other factors, pupil-teacher ratios, compensation,

collective bargaining practices, technology investments, educational supplies, teacher training and

professional development, student performance assessments, curriculum offerings and support

services and all other costs and needs associated with the delivery of educational services.

(d) The property tax relief technical advisory group shall advise and assist the committee

in identifying the options and the impact of replacing existing local education property tax levies

that support the funding of elementary and secondary education with other resources.

(e) The joint committee shall issue a report outlining its findings and recommendations

no later than October 1, 2005.

All state agencies and departments shall be directed to cooperate with and provide all

necessary information to the joint legislative committee.

     SECTION 2. This act shall take effect upon passage.

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LC03462

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