ARTICLE 13 SUBSTITUTE A AS AMENDED

RELATING TO EDUCATION AID

 

     SECTION 1. Section 16-7.1-15 of the General Laws in Chapter 16-7.1 entitled “The Paul

W. Crowley Rhode Island Student Investment Initiative” is hereby amended to read as follows:

 

     16-7.1-15. The Paul W. Crowley Rhode Island student investment initiative.

[Effective July 1, 2010.].-- (a) Each locally or regionally operated school district shall receive as

a base the same amount of school aid as each district received in fiscal year 1997-1998, adjusted

to reflect the increases or decreases in aid enacted to meet the minimum and maximum funding

levels established for FY 2000 through FY 2008. Each school district shall also receive school aid

through each investment fund for which that district qualifies pursuant to §§ 16-7.1-8, 16-7.1-9,

16-7.1-10, 16-7.1-11, 16-7.1-12, 16-7.1-16 and 16-7.1-19. These sums shall be in addition to the

base amount described in this section. For FY 2009 and FY 2010, the reference year for the data

used in the calculation of aid pursuant to § 16-7.1-8, § 16-7.1-9, § 16-7.1-10, § 16-7.1-11, § 16-

7.1-11.1, § 16-7.1-12, § 16-7.1-16, § 16-7.1-19 and 16-77.1-2(b) shall be FY 2004. Calculation

and distribution of education aid under §§ 16-5-31, 16-5-32, 16-7-20, 16-7-20.5, 16-7-34.2, 16-7-

34.3, 16-24-6, 16-54-4, and 16-67-4 is hereby suspended. Provided, however, calculation and

distribution of education aid under § 16-7.1-10 is suspended for FY 2009 and FY 2010. School

districts may continue to maintain professional development programs and may reduce other

education programs to achieve savings during FY 2009 and FY 2010. The funding of the

purposes and activities of chapter 67 of this title, the Rhode Island Literacy and Dropout

Prevention Act of 1967, shall be the same amount of the base amount of each district funded for

that purpose in fiscal year 1997-1998. In addition each district shall expend three percent (3%) of

its student equity and early childhood funds under the provisions of chapter 67 of this title.

     (b) Funding for full day kindergarten programs in accordance with § 16-7.1-11.1 shall be

in addition to funding received under this section.

     (c) Funding distributed under §§ 16-77.1-2(b) and 16-64-1.1 shall be in addition to

funding distributed under this section.

     (d) For FY 2009, aid to school districts shall be reduced by the equivalent savings that are

realized due to a reduction of payments to the teachers' retirement system. The reduction for the

Chariho regional school district shall be prorated among the member communities. In addition,

for FY 2009 aid to school districts shall be reduced by any amount of previously appropriated

school housing aid determined to be ineligible for reimbursement in accordance with § 16-7-44.2.

For FY 2009 aid shall also be reduced by the amount of projected revenue for the period

December 1, 2008 through June 30, 2009 from the permanent school fund. The projected revenue

shall be determined by annualizing actual earnings from the period May 12, 2008 through

November 30, 2008. The department of elementary and secondary education shall reduce aid in

two equal installments, payable in May and June; provided however, that East Providence shall

receive one payment of reduced aid in May.

     For FY 2009, aid to school districts shall include thirty eight million, three hundred

twenty-four thousand, eight hundred twenty-two dollars ($38,324,822) from federal fiscal

stabilization funds offset by a like reduction from general revenues. The distribution shall be in

the same proportion as general operating aid.

     (e) For FY 2010, aid to school districts shall be reduced by the equivalent savings that are

realized due to a reduction of payments to the teachers' retirement system. The reduction for the

Chariho regional school district shall be prorated among the member communities. For FY 2010,

aid to school districts shall be reduced by thirty-three million nine hundred twenty-eight thousand

two hundred sixteen dollars ($33,928,216) based on the school district's share of total FY 2009

enacted education aid, including state schools and charter schools. For FY 2010, a distribution of

stabilization funds per the American Recovery and Reinvestment Act (ARRA) totaling thirty-four

million one hundred seven thousand one hundred ninety-five dollars ($34,107,195) shall be

allocated to school districts proportionately based on their share of total FY 2009 enacted

education aid, including state schools and charter schools.

     Districts shall comply with the assurances and reporting requirements provided in the

federal guidance for the (ARRA) allocation and by the commissioner of elementary and

secondary education.

     (f) There shall be an appropriation to ensure that total aid distributed to communities in

FY 2010 under this section and §§ 16-7.1-11.1, 16-64-1.1 and 16-77.1-2(b) and excluding any FY

2009 Stabilization reappropriations shall be as follows:

 

                                                                                                FY 2010 Stimulus Fiscal

                                                General Revenues                     Stabilization Allocation

 

     Barrington                            1,863,090 1,629,678                                128,427 170,513

     Burrillville                            12,928,167 12,220,612                            681,478 948,730

     Charlestown                         1,697,49 7 1,590,767                               98,918 134,864

     Coventry                              18,056,601 16,912,980                            991,787 1,365,674

     Cranston                              31,662,364 29,622,695                            1,752,647 2,410,080

     Cumberland                         11,829,002 11,066,294                            654,948 900,586

     East Greenwich                    1,503,975 1,321,451                                96,326 129,312

     East Providence                   24,199,858 23,047,872                            1,328,384 1,833,360

     Foster                                  1,286,565 1,208,609                                69,979 96,527

     Glocester                             2,927,949 2,754,277                                158,776 219,128

     Hopkinton                            5,677,786 5,323,835                                308,347 425,441

     Jamestown                           398,173 356,229                                     26,278 35,124

     Johnston                              9,596,568 8,971,463                                531,110 730,358

     Lincoln                                6,363,969 5,884,774                                365,750 499,702

     Little Compton                     296,650 267,222                                     18,221 24,622

     Middletown                          9,532,081 8,937,990                                518,598 715,319

     Narragansett                        1,167,137 1,314,267                                93,727 125,872

     Newport                              10,714683 10,104,222                             586,477 808,465

     New Shoreham                    64,987 50,323                                        5,254 6,826

     North Kingstown                  10,631,113 9,922,498                              2,155 813,392

     North Providence                 12,081,507 11,311,934                            661,166 911,004

     North Smithfield                   4,344,329 4,055,880                                238,830 328,814

     Pawtucket                           62,176,676 58,731,451                            3,311,223 4,584,707

     Portsmouth                          5,923,071 5,571,674                                332,008 454,416

     Providence                           178,309,941 168,378,347                         9,577,917 13,241,031

     Richmond                            5,652,344 5,300,144                                305,712 422,147

     Scituate                               2,926,243 2,712,604                                168,328 229,942

     Smithfield                             4,992,643 4,635,136                                283,754 388,414

     South Kingstown                  9,224,287 8,575,177                                521,117 714,097

     Tiverton                               5,271,861 4,923,363                                293,067 402,699

     Warwick                              32,168,879 31,261,607                            1,858,870 2,554,650

     Westerly                              5,771,932 5,319,551                                338,071 460,458

     West Warwick                     18,738,108 17,635,159                            1,009,842 1,395,236

     Woonsocket                         44,071,702 41,636,569                            2,342,811 3,244,945

     Bristol-Warren                     18,761,456 17,675,687                            1,009,726 1,395,455

     Exeter-West Greenwich       6,814,331 6,378,147                                374,779 515,945

     Chariho                                378,758 359,704                                     19,679 27,370

     Foster-Glocester                   5,194,804 4,878,574                                283,077 390,339

     Central Falls                         42,507,399 40,233,714                            2,167,539 3,021,611

     In addition to the amounts listed above, the department of elementary and secondary

education shall allocate monthly to each school district all funds received into the permanent

school fund pursuant to § 42-61.2-7, as amended by chapter 13 of the 2008 Public Laws entitled

"An Act Relating to State Affairs and Government", up to $14.1 million, in the same proportion

as the aid distribution in the FY 2009 enacted appropriations act.

     This special provision shall not limit entitlements as determined by application of other

formula provisions in this section.

     (g) For FY 2009 payments to charter public schools shall be reduced by the equivalent

savings that are realized due to a reduction of payments to the teachers' retirement system. The

reduction for district sponsored charter schools shall be incorporated in the sponsoring school

district's aid as noted in subsection (f). Aid to charter public schools shall be reduced in the April

quarterly payment. For FY 2009, charter public school funding is as follows:

     Beacon Charter School         1,512,785

     Blackstone Academy            1,469,349

     Compass                              614,485

     Paul Cuffee                         4,449,006

     CVS Highlander                   2,596,782

     International                         2,863,818

     Kingston Hill Academy         736,784

     Learning Community            3,669,529

     NE Laborer's                       1,508,866

     Textron                                2,361,370

     Times 2 Academy                6,870,410

     (h) (1) For FY 2010, payments to charter public schools shall be reduced by the

equivalent savings that are realized due to a deferment reduction of payments to the teachers'

retirement system. The reduction for district sponsored charter schools shall be incorporated in

the sponsoring schools district's aid as noted in subsection (f). For FY 2010, payments to charter

public schools shall be reduced by one million four hundred sixty-three thousand three hundred

sixty-seven dollars ($1,463,367) based on the charter schools' share of total FY 2009 enacted

education aid, including school districts and state schools. For FY 2010, a distribution of

stabilization funds per the American Recovery and Reinvestment Act (ARRA) totaling one

million four hundred seventy-one thousand eighty-seven dollars ($1,471,087) shall be allocated to

charter public schools proportionately based on their share of total FY 2009 enacted education

aid, including school districts and state schools.

     (2) For FY 2010, payments to charter public schools shall be further reduced by one

million one hundred fifty-eight thousand one dollars ($1,158,001) based on the charter schools'

share of total FY 2010 originally enacted education aid. For FY 2010, an additional distribution

of stabilization funds per the American Recovery and Reinvestment Act (ARRA) totaling one

hundred ninety-seven thousand seven hundred fifty-two dollars ($197,752) shall be allocated to

charter public schools proportionately based on their share of total FY 2010 originally enacted

education aid.

     (3) Public charter schools shall comply with the assurances and reporting requirements

provided in the federal guidance for the (ARRA) allocation and by the commissioner of

elementary and secondary education.

     (i) There shall be deducted from the final aid payment to each school district any amounts

owed to the state at the end of the fiscal year for transportation of the district’s students under the

statewide transportation system established pursuant to R.I.G.L. 16-21.1-7 and 16-21.1-8.

Districts shall receive monthly invoices summarizing the basis of the transportation fees charged.

Any such deductions in aid shall be transferred to the statewide student transportation services

restricted receipt account.

     (j) The provisions of R.I.G.L. 16-26-7.1 notwithstanding, districts shall be assessed

tuition to cover the costs of educational services that are additional to the core deaf and hard of

hearing education program that is provided to resident students at the Rhode Island School for the

Deaf. This tuition shall be based on a graduated tuition schedule that is based on the varying

needs of students. The department of elementary and secondary education shall develop and

implement the schedule. Districts shall receive monthly invoices summarizing the basis for the

tuition charged. There shall be deducted from the final aid payment to each school district at the

end of the fiscal year any amounts owed to the state for these additional educational services.

     (i) (k) Children with disabilities. (1)  Based on its review of special education within the

context of Rhode Island school reform, the general assembly recommends addressing the needs of

all children and preventing disability through scientific research based, as described in the No

Child Left Behind Act of 2001, Title 1, Part B, Section 1208 [20 U.S.C. § 6368], reading

instruction and the development of Personal Literacy Programs for students in the early grades

performing below grade level in reading and implement a system of student accountability that

will enable the state to track individual students over time. Additionally, the department of

elementary and secondary education must provide districts with rigorous criteria and procedures

for identifying students with learning disabilities and speech/language impairments. Additional

study is required of factors that influence programming for students with low incidence

disabilities; those with disabilities that severely compromise life functions; and programming for

students with disabilities through urban special education. Alternatives for funding special

education require examination.

     (2) All departments and agencies of the state shall furnish any advice and information,

documentary and otherwise, to the general assembly and its agents that is deemed necessary or

desirable by the study to facilitate the purposes of this section.

      (l) For FY 2011, aid to school districts shall be reduced by the equivalent savings that are

realized due to a reduction of payments to the teachers' retirement system. The reduction for the

Chariho regional school district shall be prorated among the member communities. For FY 2011,

aid to school districts shall be further reduced by twenty million four hundred ninety thousand

one hundred thirty-seven dollars ($20,490,137) from the FY 2010 originally enacted level based

on the school district's share of total FY 2010 originally enacted education aid, including aid to

state schools and charter schools. For FY 2011, a distribution of federal stabilization funds made

available through the American Recovery and Reinvestment Act (ARRA), in the amount of

seventeen million four hundred thirty-one thousand nine hundred four dollars ($17,431,904), shall

be allocated to school districts proportionately based on their share of total FY 2010 originally

enacted education aid, including aid to state schools and charter schools.

     (f) (m) There shall be an appropriation to ensure that total aid distributed to communities

in FY 2010 2011 under this section and §§ 16-7.1-11.1, 16-64-1.1 and 16-77.1-2(b), excluding

any FY 2009 and FY 2010 Stabilization reappropriations, shall be as follows:

 

                                                                                                FY 2011 Stimulus Fiscal

                                                General Revenues                     Stabilization Allocation

 

        Barrington                         1,863,090 1,709,541                                128,427 68,151

        Burrillville                         12,928,167 12,723,172                            684,478 326,139

        Charlestown                      1,697,497 1,658,980                                98,948 49,284

        Coventry                           18,056,601 17,625,624                            991,787 480,946

        Cranston                           31,662,364 30,876,770                            1,752,647 852,976

        Cumberland                      11,829,002 11,534,855                            654,948 318,784

        East Greenwich                 1,503,975 1,277,951                                96,326 49,760

        East Providence                24,499,858 23,891,690                            1,328,384 640,267

        Foster                               1,286,565 1,259,241                                69,979 33,780

        Glocester                          2,927,940 2,869,462                                158,776 76,538

        Hopkinton                         5,677,786 5,547,160                                308,347 148,729

        Jamestown                        398,901 373,118                                     26,278 13,728

        Johnston                           9,596,568 9,351,204                                531,110 258,452

        Lincoln                             6,363,969 6,139,669                                365,750 181,008

        Little Compton                  296,650 279,301                                     18,221 9,269

        Middletown                       9,533,084 9,312,401                                518,598 250,345

        Narragansett                     1,467,137 1,375,277                                93,727 48,407

        Newport                           10,744,683 10,528,468                            586,477 283,585

        New Shoreham                 64,987 53,154                                        5,254 2,926

        North Kingstown               10,631,113 10,344,125                            592,155 289,005

        North Providence              12,081,507 11,787,482                            661,166 320,061

        North Smithfield                4,344,329 4,226,827                                238,830 115,855

        Pawtucket                        62,176,676 61,160,994                            3,311,223 1,582,330

        Portsmouth                       5,923,071 5,806,300                                331,008 161,798

        Providence                        178,309,944 175,216,822                         9,577,917 4,596,217

        Richmond                         5,652,344 5,522,206                                305,742 147,191

        Scituate                            2,926,243 2,830,181                                168,328 83,341

        Smithfield                          4,992,643 4,759,547                                283,754 139,730

        South Kingstown               9,224,287 8,942,714                                521,147 255,978

        Tiverton                            5,271,861 5,132,318                                293,067 142,905

        Warwick                           33,468,879 32,587,668                            1,858,870 906,046

        Westerly                           5,774,932 5,552,661                                338,074 168,643

        West Warwick                  18,738,108 18,369,914                            1,009,842 485,338

        Woonsocket                      44,074,702 43,237,525                            2,342,811 1,118,508

        Bristol-Warren                  18,764,456 18,411,506                            1,009,726 484,936

        Exeter-West Greenwich    6,814,331 6,527,123                                374,779 181,826

        Chariho                             378,758 374,376                                     19,679 9,291

        Foster-Glocester                5,194,804 5,083,179                                283,077 136,766

        Central Falls                      42,507,399 41,852,580                            2,167,539 1,013,065

     In addition to the amounts listed above, the department of elementary and secondary

education shall allocate monthly to each school district all funds received into the permanent

school fund pursuant to § 42-61.2-7, as amended by chapter 13 of the 2008 Public Laws entitled

"An Act Relating to State Affairs and Government", up to $14.1 million, in the same proportion

as the aid distribution in the FY 2009 enacted appropriations act.

     This special provision shall not limit entitlements as determined by application of other

formula provisions in this section.

       (g) (n) For FY 2009 payments to charter public schools shall be reduced by the

equivalent savings that are realized due to a reduction of payments to the teachers' retirement

system. The reduction for district sponsored charter schools shall be incorporated in the

sponsoring school district's aid as noted in subsection (f) (g). Aid to charter public schools shall

be reduced in the April quarterly payment. For FY 2009, charter public school funding is as

follows:

     Beacon Charter School         1,512,785

     Blackstone Academy            1,469,349

     Compass                              614,485

     Paul Cuffee                         4,449,006

     CVS Highlander                   2,596,782

     International                         2,863,818

     Kingston Hill Academy         736,784

     Learning Community            3,669,529

     NE Laborer's                       1,508,866

     Textron                                2,361,370

     Times 2 Academy                6,870,410

     (o) For FY 2011, payments to charter public schools shall be reduced by the equivalent

savings that are realized due to a reduction of payments to the teachers' retirement system. The

reduction for district sponsored charter schools shall be incorporated in the sponsoring schools

district's aid as noted in subsection (g). For FY 2011, payments to charter public schools shall be

further reduced by one million seventy-six thousand nine hundred forty-one dollars ($1,076,941)

from the FY 2010 originally enacted education aid based on the charter schools' share of total FY

2010 enacted education aid, including aid to school districts and state schools. For FY 2011, a

distribution of federal stabilization funds made available through the American Recovery and

Reinvestment Act (ARRA), in the amount of one million forty-eight thousand six hundred dollars

($1,048,600), shall be allocated to charter public schools proportionately based on their share of

total FY 2010 originally enacted education aid, including aid to school districts and state schools.

 

     SECTION 2. Section 16-7-23 of the General Laws in Chapter 16-7 entitled "Foundation

Level School Support" is hereby amended to read as follows:

 

     16-7-23. Community requirements -- Adequate minimum budget provision. -- (a)

The school committee's budget provisions of each community for current expenditures in each

budget year shall provide for an amount from all sources sufficient to support the basic program

and all other approved programs shared by the state. Each community shall contribute local funds

to its school committee in an amount not less than its local contribution for schools in the

previous fiscal year. Provided, that for the fiscal years 2010 and 2011 each community shall

contribute to its school committee in an amount not less than ninety-five percent (95.0%) of its

local contribution for schools for the fiscal year 2009. Calculation of the annual local contribution

shall not include Medicaid revenues received by the municipality or district pursuant to chapter 8

of title 40. A community which has a decrease in enrollment may compute maintenance of effort

on a per pupil rather than on an aggregate basis when determining its local contribution;

furthermore, a community which experiences a nonrecurring expenditure for its schools may

deduct the nonrecurring expenditure in computing its maintenance of effort. The deduction of

nonrecurring expenditures shall be with the approval of the commissioner. The courts of this state

shall enforce this section by writ of mandamus.

      (b) Whenever any state funds are appropriated for educational purposes, the funds shall

be used for educational purposes only and all state funds appropriated for educational purposes

must be used to supplement any and all money allocated by a city or town for educational

purposes and, in no event, shall state funds be used to supplant, directly or indirectly, any money

allocated by a city or town for educational purposes. All state funds shall be appropriated by the

municipality to the school committee for educational purposes in the same fiscal year in which

they are appropriated at the state level even if the municipality has already adopted a school

budget. All state and local funds unexpended by the end of the fiscal year of appropriation shall

remain a surplus of the school committee and shall not revert to the municipality. Any surplus of

state or local funds appropriated for educational purposes shall not in any respect affect the

requirement that each community contribute local funds in an amount not less than its local

contribution for schools in the previous fiscal year, subject to subsection (a) of this section, and

shall not in any event be deducted from the amount of the local appropriation required to meet the

maintenance of effort provision in any given year.

 

     SECTION 3. Sections 16-7-41 and 16-7-45 of the General Laws in Chapter 16-7 entitled

Foundation Level School Support” are hereby amended to read as follows:

 

     16-7-41.  Computation of school housing aid. -- (a) In each fiscal year the state shall

pay to each community a grant to be applied to the cost of school housing equal to the following:

     The cost of each new school housing project certified to the commissioner of elementary

and secondary education not later than July 15 of the fiscal year shall be divided by the actual

number of years of the bond issued by the local community or the Rhode Island Health and

Educational Building Corporation in support of the specific project, times the school housing aid

ratio; and provided, further, with respect to costs of new school projects financed with proceeds

of bonds issued by the local community or the Rhode Island Health and Educational Building

Corporation in support of the specific project, the amount of the school housing aid payable in

each fiscal year shall not exceed the amount arrived at by multiplying the principal and interest of

the bonds payable in each fiscal year by the school housing aid ratio and which principal and

interest amount over the life of the bonds, shall, in no event, exceed the costs of each new school

housing project certified to the commissioner of elementary and secondary education. If a

community fails to specify or identify the appropriate reimbursement schedule, the commissioner

of elementary and secondary education may at his or her discretion set up to a five (5) year

reimbursement cycle for projects under five hundred thousand dollars ($500,000); up to ten (10)

years for projects up to three million dollars ($3,000,000); and up to twenty (20) years for

projects over three million dollars ($3,000,000).

        (b) Aid shall be provided for the same period as the life of the bonds issued in support

of the project and at the school housing aid ratio applicable to the local community at the time of

the bonds issued in support of the project.

        (c) Aid shall be paid either to the community or in the case of projects financed through

the Rhode Island Health and Educational Building Corporation, to the Rhode Island Health and

Educational Building Corporation or its designee including, but not limited to, a trustee under a

bond indenture or loan and trust agreement, in support of bonds issued for specific projects of the

local community in accordance with this section, § 16-7-40 and § 16-7-44. Notwithstanding the

preceding, in case of failure of any city, town or district to pay the amount due in support of

bonds issued on behalf of a city or town school project financed by the Rhode Island Health and

Educational Building Corporation, upon notification by the Rhode Island Health and Educational

Building Corporation, the general treasurer shall deduct the amount from aid provided under this

section, § 16-7-40 and § 16-7-44 due the city, town or district and direct said funding to the

Rhode Island Health and Educational Building Corporation or its designee.

        (d) Notwithstanding any provisions of law to the contrary, in connection with the

issuance of refunding bonds benefiting any local community, any net interest savings resulting

from the refunding bonds issued by such community or a municipal public buildings authority for

the benefit of the community or by the Rhode Island health and educational building corporation

for the benefit of the community, in each case in support of school housing projects for the

community, shall be allocated between the community and the state of Rhode Island, by applying

the applicable school housing aid ratio at the time of issuance of the refunding bonds, calculated

pursuant to § 16-7-39, that would otherwise apply in connection with school housing projects of

the community. In connection with any such refunding of bonds, the finance director or the chief

financial officer of the community shall certify such net interest savings to the commissioner of

elementary and secondary education. Notwithstanding § 16-7-44 or any other provision of law to

the contrary, school housing projects costs in connection with any such refunding bond issue shall

include bond issuance costs incurred by the community, the municipal public buildings authority

or the Rhode Island health and educational building corporation, as the case may be, in

connection therewith. In connection with any refunding bond issue, school housing project costs

shall include the cost of interest payments on such refunding bonds, if the cost of interest

payments was included as a school housing cost for the bonds being refunded. A local community

or municipal public buildings authority shall not be entitled to the benefits of this subsection (d)

unless the net present value savings resulting from the refunding is at least three percent (3%) of

the refunded bond issue.

        (e) Any provision of law to the contrary notwithstanding, the commissioner of

elementary and secondary education shall cause to be monitored the potential for refunding

outstanding bonds of local communities or municipal public building authorities or of the Rhode

Island Health and Educational Building Corporation issued for the benefit of local communities

or municipal public building authorities and benefiting from any aid referenced in this section. In

the event it is determined by said monitoring that the net present value savings which could be

achieved by refunding such bonds of the type referenced in the prior sentence including any

direct costs normally associated with such refundings is equal to (i) at least one hundred thousand

dollars ($100,000) and (ii) for the state and the communities or public building authorities at least

three percent (3%) of the bond issue to be refunded including associated costs then, in such event,

the commissioner (or his or her designee) may direct the local community or municipal public

building authority for the benefit of which the bonds were issued, to refund such bonds. Failure of

the local community or municipal public buildings authority to timely refund such bonds, except

due to causes beyond the reasonable control of such local community or municipal public

building authority, shall result in the reduction by the state of the aid referenced in this § 16-7-4.1

associated with the bonds directed to be refunded in an amount equal to ninety percent (90%) of

the net present value savings reasonably estimated by the commissioner of elementary and

secondary education (or his or her designee) which would have been achieved had the bonds

directed to be refunded been refunded by the ninetieth (90th) day (or if such day is not a business

day in the state of Rhode Island, the next succeeding business day) following the date of issuance

of the directive of the commissioner (or his or her designee) to refund such bonds. Such reduction

in the aid shall begin in the fiscal year following the fiscal year in which the commissioner issued

such directive for the remaining term of the bond.

        (f) Payments shall be made in accordance with § 16-7-40 and this section.

 

      16-7-45. Annual appropriations. -- The general assembly shall annually appropriate

those sums that it may deem necessary to carry out the purposes of §§ 16-7-35 to 16-7-47, and the

state controller is authorized and directed to draw his or her orders upon the general treasurer for

the payment of the sum, or so much of it as may be required from time to time, upon the receipt

by the controller of properly authenticated vouchers. In the event that the full amount of housing

aid has not been appropriated in a particular fiscal year, school housing aid will not be ratably

reduced. In such cases, aid computed for school housing costs for debt service which has been

paid by the local community prior to project completion will be deferred. Such aid will be paid

within three (3) equal installments beginning the fiscal year after project completion. This

deferral provision shall only be applicable if the computed aid for debt service paid by the local

community prior to project completion exceeds five hundred thousand dollars ($500,000).

 

     SECTION 4. Section 16-5-34 of the General Laws in Chapter 16-5 entitled “State Aid” is

hereby repealed.

 

     16-5-34. Statewide purchasing system. -- The department of elementary and secondary

education, pursuant to the collaborative established in Rhode Island General Laws § 6-2-9.2

along with the department of administration, shall develop a plan for the establishment and

implementation of a statewide purchasing system for all public schools in this state. Said

statewide purchasing system shall develop requests for proposals relating to goods and services to

enhance and support the mission of public schools and public education in general throughout this

state, including, but not limited to, the purchase of the following goods, supplies, and services:

     (a) General school supplies such as paper goods, office supplies, and cleaning products

that are or may be utilized by school departments;

     (b) Textbooks, telecommunications, wireless services, and software that have been

identified by local school departments as needed to support local curriculum objectives;

     (c) A statewide school transportation system for children with special needs. Local school

departments shall be eligible to participate in this system by purchasing transportation services on

a fee-for-service basis. It is stated herein that the goals and intent of establishing this state-wide

transportation system shall be as follows:

     (1) To reduce the duplication of bus routes;

     (2) To improve services to children through the development of shorter, more efficient

routes that minimize the amount of time spent by the student traveling on school transportation to

and from school and school-related/sponsored activities; and

     (3) To reduce transportation costs to local educational authorities through greater

efficiency and cost-effective measures.

     (d) General non-medical and dental insurance products and services, provided however,

     that the statewide purchasing system shall permit districts to establish their own benefit

and coverage levels.

     (e) The department of elementary and secondary education, in collaboration with the

     department of administration, shall also develop policies and procedures to reduce the

cost of health care insurance to local school departments by developing a collaborative process

which shall include local educational authorities and representatives of local educational unions

in discussions of cost saving efficiencies that could be achieved by including these employees in

a state health insurance contract.

 

     SECTION 5. Chapter 16-60 of the General Laws entitled “Board of Regents for

Elementary and Secondary Education” is hereby amended by adding thereto the following

section:

 

     16-60-7.3. Statewide purchasing system and programs. – (a) The department of

elementary and secondary education, together with the department of administration, is

authorized to develop and implement a voluntary statewide purchasing system for all public

schools in this state, including regional school districts. Said system may be utilized for the

purchase of all goods, supplies and services to support and enhance public school operations

under a statewide contract, and shall include, but not be limited to, the following goods, supplies

and services:

     (1) General school supplies such as paper goods, office supplies, textbooks and cleaning

products that are or may be utilized by school departments;

     (2) Telecommunications, wireless services, computer equipment, hardware and software

that have been identified by local school departments as needed to support curriculum objectives;

     (3) General non-medical and dental insurance products and services; provided however,

that the statewide purchasing system shall permit districts to establish their own benefit and

coverage levels.

     (b) Notwithstanding the provisions of any general or public law to the contrary, including

the provisions of chapter 2 of title 37, the department of elementary and secondary education and

local and regional school districts are authorized to participate in purchasing collaboratives,

consisting of two (2) or more states. Said participation shall be subject to prior approval of the

chief purchasing officer and rules and regulations promulgated by the department.

 

     SECTION 6. Section 37-2-56 of the General Laws in Chapter 37-2 entitled “State

Purchases” is hereby amended to read as follows:

 

      37-2-56. Purchasing for municipalities and regional school districts. -- (a) Any

municipality or regional school district of the state may participate in state master price

agreement contracts for the purchase of materials, supplies, services and equipment entered into

by the purchasing agent, provided, however, that the contractor is willing, when requested by the

municipality or school district, to extend the terms and conditions of the contract and that the

municipality or school district will be responsible for payment directly to the vendor under each

purchase contract. Unless a state contract is the result of an intergovernmental cooperative

purchase contract to which a municipality or school district is a party, the purchasing agent shall

not compel a successful bidder to extend the same terms and conditions to a municipality or

school district. However, the purchasing agent may, in the interest of obtaining better pricing on

behalf of the state and local entities, solicit offers based upon anticipated master price agreement

utilization by municipalities and school districts.

 

     SECTION 7. This article shall take effect upon passage.