Chapter 124

2010 -- S 2770 SUBSTITUTE A AS AMENDED

Enacted 06/23/10

 

A N A C T

RELATING TO EDUCATION-- THE EDUCATION ADEQUACY ACT

          

     Introduced By: Senators Gallo, Paiva-Weed, Ruggerio, DiPalma, and Felag

     Date Introduced: April 07, 2010    

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Sections 16-7-16, 16-7-20, 16-7-22, 16-7-23, 16-7-23.1, 16-7-24, 16-7-39

and 16-7-41 of the General Laws in Chapter 16-7 entitled "Foundation Level School Support" are

hereby amended to read as follows:

 

     16-7-16. Definitions. -- The following words and phrases used in sections 16-7-15 to 16-

7-34 have the following meanings:

      (1) "Adjusted equalized weighted assessed valuation" means the equalized weighted

assessed valuation of a community as determined by the department of revenue or as apportioned

by the commissioner pursuant to the provisions of section 16-7-21;

      (2) "Average daily membership" means the average number of pupils in a community

during a school year as determined pursuant to the provisions of section 16-7-22, less any

students who are served in a program operated by the state and funded through the permanent

foundation education aid formula pursuant to chapter 16-7.2 which program is part of the

operations aid formula;

      (3) "Basic education program" means the cost of education of resident pupils in grades

twelve (12) and below in average daily membership for the reference year as determined by the

mandated minimum program level plus all transportation costs including school bus monitors;

      (4) "Certified personnel" means all persons who are required to hold certificates issued

by or under the authority of the board of regents for elementary and secondary education;

      (5) "Community" means any city, town, or regional school district established pursuant

to law and/or the department of children, youth, and families; provided, however, that the

department of children, youth, and families shall not have those administrative responsibilities

and obligations as set forth in chapter 2 of this title; provided, however, that the member towns of

the Chariho regional high school district, created by P.L. 1958, chapter 55 as amended, shall

constitute separate and individual communities for the purpose of determining and distributing

the foundation level school support including state aid for noncapital excess expenses for the

special education of children with disabilities provided for in section 16-24-6 for all grades

financed in whole or in part by the towns irrespective of any regionalization and any school

operated by the state department of elementary and secondary education;

      (6) "Department of children, youth, and families" means that department created

pursuant to chapter 72 of title 42. For purposes of this section, sections 16-7-20, 16-24-2, and 42-

72-5(b)(22), "children" means those children who are placed, assigned, or otherwise

accommodated for residence by the department of children, youth, and families in a state operated

or supported community residence licensed by a state agency and the residence operates an

educational program approved by the department of elementary and secondary education;

      (7) "Equalized weighted assessed valuation" means the equalized weighted assessed

valuation for a community as determined by the division of property valuation pursuant to the

provisions of section 16-7-21;

      (8) "Full time equivalency students" means the time spent in a particular activity divided

by the amount of time in a normal school day;

      (9) "Incentive entitlement" means the sum payable to a local school district under the

formula used;

      (10) "Mandated minimum program level" means the amount that shall be spent by a

community for every pupil in average daily membership as determined pursuant to the provisions

of section 16-7-18;

      (11) "Reference year" means the next year prior to the school year immediately

preceding that in which the aid is to be paid; and. For the purposes of calculating the permanent

foundation education formula aid as described in section 16-7.2-3, the reference date shall be one

year prior to the year in which aid is paid; and

      (12) "Regularly employed" and "service" as applied to certified personnel have the same

meaning as defined in chapter 16 of this title.

 

     16-7-20. Determination of state's share. -- (a) For each community the state's share

shall be computed as follows: Let

     R = state share ratio for the community.

     v = adjusted equalized weighted assessed valuation for the community, as defined in

section 16-7-21(3).

     V = sum of the values of v for all communities.

     m = average daily membership of pupils in the community as defined in section 16-7-

22(3).

     M = total average daily membership of pupils in the state.

     E = approved reimbursable expenditures for the community for the reference year minus

the excess costs of special education, tuitions, federal and state receipts, and other income.

     Then the state share entitlement for the community shall be RE where

     R = 1 - 0.5 vM/(Vm) through June 30, 2011, and R = 1 - 0.475 vM/(Vm) beginning on

July 1, 2011 and thereafter.

     Except that in no case shall R be less than zero percent (0%). This percentage shall be

applied to one hundred percent (100%) of all expenditures approved by the board of regents for

elementary and secondary education in accordance with currently existing rules and regulations

for administering state aid, including but not limited to the setting of appropriate limits for

expenditures eligible for reimbursement; provided, however, that the costs of special education

required under chapter 24 of this title shall be excluded; and the costs for regional vocational

school operation and tuition which are funded in chapter 45 of this title for the reference year

1987-1988 and thereafter, shall be excluded. "Special education costs" mean the costs that are in

excess of the average per pupil expenditure in average daily membership for the second school

year preceding. The average per pupil expenditure in average daily membership of those students

receiving special education shall be included in the cost of the basic program for the reference

year, as "reference year" is defined in section 16-7-16. Expenditures from federal money in lieu

of taxes shall not be counted and, provided further that the individual communities in the Chariho

regional districts shall each receive the seven and five hundredths percent (7.05%) for those

grades serviced by the regional school district.

     (b) The department of elementary and secondary education shall base reimbursement on

one hundred percent (100%) of the expenditures for its state operated schools in accordance with

the reference year provision as defined in section 16-7-16(11). Any funds to supplement the

reimbursement shall be appropriated and included in the department budget.

     (c) This section shall apply to the School for the Deaf and the Davies Vocational School

notwithstanding any provisions of this section to the contrary.

     (d) (b) Whenever any 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. The courts of this state shall enforce this section by writ of

mandamus.

     (e) (c) Notwithstanding the calculations in subsection (a), the hospital school at the Hasbro

Children's Hospital shall be reimbursed one hundred percent (100%) of all expenditures approved

by the board of regents for elementary and secondary education in accordance with currently

existing rules and regulations for administering state aid, and subject to annual appropriations by

the general assembly including, but not limited to, expenditures for educational personnel,

supplies, and materials in the prior fiscal year.

 

     16-7-22. Determination of average daily membership. -- Each community shall be

paid pursuant to the provisions of section 16-7-17 an amount based upon the following

provisions:

      (1) On or before September 1 of each year the average daily membership of each city

and town for the reference year shall be determined by the commissioner of elementary and

secondary education from data supplied by the school committee in each community in the

following manner: The aggregate number of days of membership of all pupils enrolled full time

in grade twelve (12) and below, except that pupils below grade one who are not full time shall be

counted on a full time equivalent basis: (i) increased by the aggregate number of days of

membership of pupils residing in the particular city or town whose tuition in schools approved by

the department of elementary and secondary education in other cities and towns is paid by the

particular city or town; and (ii) decreased by the aggregate number of days of membership of

nonresident pupils enrolled in the public schools of the particular city or town and further

decreased by the aggregate number of days of membership equal to the number of group home

beds calculated for the purposes of reimbursement pursuant to section 14-64-1.1; and (iii)

decreased further, in the case of a city or town which is a member of a regional school district

during the first year of operation of the regional school district, by the aggregate number of days

of membership of pupils residing in the city or town who would have attended the public schools

in the regional school district if the regional school district had been operating during the

previous year, divided by the number of days during which the schools were officially in session

during the reference year. The resulting figures shall be the average daily membership for the city

or town for the reference year. For purposes of calculating the permanent foundation education

aid as described in section 16-7.2-3 (1) and (2), the average daily membership for school districts

shall exclude charter school and state school students.

      (2) The average daily membership of pupils attending public schools shall apply for the

purposes of determining the percentage of the state's share under the provisions of sections 16-7-

16(3), 16-7-16(10), 16-7-18, 16-7-19, 16-7-20, and 16-7-21 and 16-7.2-4.

      (3) In the case of regional school districts, the aggregate number of days of membership

by which each city or town is decreased in subdivision (1)(iii) of this section divided by the

number of days during which the schools attended by the pupils were officially in session shall

determine the average daily membership for the regional school district during the first year of

operation. After the first year of operation, the average daily membership of each regional school

district, except the Chariho regional high school district, shall be determined by the commissioner

of elementary and secondary education from data supplied by the school committee of each

regional school district for the reference year in the manner provided in subdivision (1) of this

section.

 

     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 except to the extent permitted by section 16-7-23.1. 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.

 

     16-7-23.1. Special maintenance of effort rules for high local contribution and high

per pupil expenditure communities. -- (a) Any community that has a local appropriation that

funds at least eighty five percent (85%) of the basic education program shall be defined as a high

local contribution community. A high local contribution community that has provided full

funding of the basic education program and all other approved programs required in law and

regulation is authorized to reduce its local appropriation to schools by an amount up to ten

percent (10%) of any increase it receives in state school funds, pursuant to the implementation of

the permanent foundation education aid formula as defined in section 16-7.2-3.

     (b) Any community that has a local appropriation that combined with state education aid

provides full funding of the basic education program and exceeds the benchmarks established by

the department of elementary and secondary education for costs outside the permanent foundation

education aid formula, pursuant to section 16-7.2-3, including but not limited to transportation,

facility maintenance, and retiree health care, shall be defined as a high per pupil expenditure

community. A high per pupil expenditure community is authorized to reduce its local

appropriation to schools by an amount up to ten percent (10%) of any increase it receives in state

school funds, pursuant to the implementation of the permanent foundation education aid formula

as defined in section 16-7.2-3.

      (c) Upon request of the local community, and for good cause shown, the commissioner

of elementary and secondary education may grant variances to subsection (a) and (b) if the

commissioner finds that such adjustment does not disrupt the continued effective operation of the

public school system of the city or town.

 

     16-7-24. Minimum appropriation by a community for approved school expenses. --

Each community shall appropriate or otherwise make available to the school committee for

approved school expenditures during each school year, to be expended under the direction and

supervision of the school committee of that community, an amount, which, together with state

education aid and federal aid: (1) shall be not less than the costs of the basic program during the

reference year, (2) plus the costs in the reference year of all optional programs shared by the state;

provided, however, that the state funds provided in accordance with section 16-5-31 shall not be

used to supplant local funds. The board of regents for elementary and secondary education shall

adopt regulations for determining the basic education program and the maintenance of local

appropriation to support the basic education program. A community that has a local appropriation

insufficient to fund the basic education program pursuant to the regulations described in this

section and all other approved programs shared by the state and required in law shall be required

to increase its local appropriation in accordance with section 44-5-2 or find efficiencies in other

non-education programs to provide sufficient funding to support the public schools. The city of

Central Falls annual local contribution to education shall be determined pursuant to subsection

16-7.2-6(d).

 

     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. The resident average

daily membership shall be determined in accordance with section 16-7-22(1).

 

     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 as set forth in section 16-7-39.

      (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, section 16-7-40 and section 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, section 16-7-40 and section 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 section 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 section 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 section 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 section 16-7-40 and this section.

 

     SECTION 2. Section 16-21.1-2 of the General Laws in Chapter 16-21.1 entitled

"Transportation of School Pupils Beyond City and Town Limits" is hereby amended to read as

follows:

 

     16-21.1-2. School bus districts established. -- (a) There are hereby established school

bus districts within the state to provide bus transportation in the interest of public safety, health,

and welfare for pupils in grades kindergarten through twelve (12), or in special education

programs, who attend public schools, including vocational schools and special education

programs provided in accord with regulations of the board of regents for elementary and

secondary education, consolidated schools, regional schools established under the provisions of

section 16-3-1 et seq., or who participate in cooperative programs as provided by section 16-3.1-1

et seq., and nonpublic nonprofit schools which are consolidated, regionalized, or otherwise

established to serve residents of a specific area within the state which schools satisfy the

requirements of law for any of the grades of school, kindergarten through twelve (12), as follows:

      (1) Region I: The towns of Burrillville, North Smithfield, and Cumberland, and the city

of Woonsocket;

      (2) Region II: The county of Kent, except the town of West Greenwich and the towns of

Foster, Glocester, and Scituate;

      (3) Region III: The towns of Lincoln, Smithfield, Johnston, North Providence,

Barrington, Warren, and Bristol, and the cities of Cranston, Central Falls, East Providence,

Pawtucket, and Providence;

      (4) Region IV: The county of Washington and the towns of Jamestown and West

Greenwich;

      (5) Region V: The towns of Little Compton, Middletown, Portsmouth, and Tiverton, and

the city of Newport.

      (b) A pupil attending a school, including a public school, vocational school, special

education program provided in accord with regulations of the board of regents for elementary and

secondary education, a regional school established under the provisions of section 16-3-1 et seq.,

as authorized by section 16-3.1-1 et seq., or a nonpublic nonprofit school for grades kindergarten

through twelve (12), consolidated, regionalized, or otherwise established to serve residents of a

specific area within the state for any of the grades of schools, kindergarten through twelve (12), in

the interest of public safety, health, and welfare, shall be provided with bus transportation to the

school or facility which the pupil attends, within the region in which the pupil resides, by the

school committee of the city or town within which the pupil resides. The cost of transporting a

pupil attending a charter school, the William M. Davies, Jr. Career and Technical High School

("Davies"), or the Metropolitan Regional Career and Technical Center ("the Met Center") within

the established region shall be charged to the receiving school at the same grade level

transportation per pupil cost of the resident district. Districts may offer transportation to charter

schools, Davies, or the Met Center outside the established region in order to facilitate efficiency

provided there is not additional cost to the resident district.

 

     SECTION 3. Section 16-45-6 of the General Laws in Chapter 16-45 entitled "Regional

Vocational Schools" is hereby amended to read as follows:

 

     16-45-6. Powers additional to previous authority. -- (a) The powers delegated and

authorized in this chapter for the board of regents for elementary and secondary education and the

department of elementary and secondary education shall be in addition to those previously

authorized by any other general or public law.

      (b) The governance, funding, and programming of the William M. Davies, Jr. vocational

technical school and the Metropolitan Career and Technical School shall be in accordance with

the rules and regulations formulated by the board of regents for elementary and secondary

education pursuant to chapter 35 of title 42. Provided, however, the additional appropriation by

the General Assembly in fiscal year 2005 for the William M. Davies, Jr. Vocational Technical

School shall be used to fund sixty (60) additional placements. Forty (40) of those placements

shall be made available to students from the City of Providence.

      (c) The purpose of this chapter is to restructure the system of career and technical

schools in Rhode Island for the benefit of the students, the economy, and the general welfare. The

paramount aim is to enable the schools to make more significant contributions in providing the

state's students with the career preparation they need to compete and succeed in the world of

today and of the future. To ensure student success, a system of model career and technical schools

will be established and supported. These schools will provide: integrated academic and vocational

curricula, up to date technology, programs to meet the varying needs of all students, and strong

links to business, industry, postsecondary education, and the community.

      (d) (1) There shall be a system of state operated career and technical schools serving

geographic areas of the state. Students attending these regional schools will do so on a full time

basis with the costs for their education at the regional school fully funded by the state being

shared by the state and the district of residence as described in section 16-7.2-5. State schools

currently participating in the state retirement system that are not receiving reimbursement

pursuant to section 16-16-22 shall have their state aid adjusted to reflect full reimbursement for

expenses related to employer retirement contributions for those staff employed by the state.

      (2) These schools shall be operated as local education agencies and each shall be

governed by a board of trustees. With the exception of those powers and duties reserved by the

director, the commissioner of elementary and secondary education, and the board of regents for

elementary and secondary education, the board of trustees shall have the powers and duties of

school committees. The Davies school shall be the first school operated under the provisions of

this chapter and shall be renamed the William M. Davies, Jr. career and technical high school.

The Metropolitan Career and Technical School shall be the second school operated under the

provisions of this chapter.

      (e) (1) The board of regents for elementary and secondary education shall appoint the

members of the board of trustees from nominations made by the commissioner of elementary and

secondary education. The chairperson shall also be selected in this manner. The board of regents

shall determine the number, qualifications, and terms of office of members of the board of

trustees. The board of trustees will be broadly representative of the local communities served by

each school and the larger statewide workforce interests.

      (2) The board of regents shall establish strategic directions for the career and technical

education system that are consistent with the state's economic development plans, workforce

requirements, and educational priorities and learner outcomes established by the board of regents.

      (3) The board of regents shall provide parameters for the overall budget requests,

approve the budget, and participate in budget development as required in subsection (i).

      (f) (1) The commissioner of elementary and secondary education shall recommend

parameters for the overall budget requests, recommend a budget and participate in budget

development as required in subsection (i).

      (2) The commissioner shall approve the process for selection of a director of each

regional school. The commissioner shall develop a plan for statewide implementation of the

provisions of this chapter.

      (g) The board of trustees shall meet monthly and serve without compensation. Nine (9)

members of the board of trustees shall be required to attend teacher appeal hearings conducted

pursuant to section 16-13-4. The board of trustees shall have broad policy making authority for

the operation of the school consistent with subsection (e) and the following powers and duties:

      (1) To identify the educational needs of the communities in the district.

      (2) To develop educational policies to meet the needs of students in the communities

served by the school district.

      (3) To appoint a director of its regional school to serve as its chief executive officer and

to approve assistant and associate directors from nominations made by the director.

      (4) To provide policy guidance and participate in budget development as required in

subsection (i).

      (5) To develop staffing policies which ensure that all students are taught by educators of

the highest possible quality.

      (h) (1) The director will serve at the pleasure of the board of trustees with the initial

appointment to be for a period of not more than three (3) years, provided, that the term and

conditions of employment are subject to the approval of the board of regents for elementary and

secondary education.

      (2) It is the responsibility of the director to manage and operate the school on a day to

day basis. The director's duties shall include the following:

      (i) To be responsible for the entire care, supervision, and management of the career and

technical high school.

      (ii) To recommend to the board of trustees educational policies to meet the needs of the

district, and to implement policies established by the board of trustees.

      (iii) To present nominations to the board of trustees for assistant and associate directors

and to appoint all other school personnel.

      (iv) To provide for the evaluation of all school district personnel.

      (v) To establish a school based management approach for decision making for the

operation of the school.

      (vi) To prepare a budget and participate in budget development as required in subsection

(i), and to authorize purchases consistent with the adopted school district budget.

      (vii) To report to the board of trustees on a regular basis the financial condition and

operation of the school, and to report annually on the educational progress of the school.

      (viii) To establish appropriate advisory committees as needed to provide guidance on

new directions and feedback on the operation of the school.

      (i) With policy guidance from the board of trustees and extensive involvement of the

administrators and faculty in the school, the director of each regional school shall annually

prepare a budget. The board of trustees will approve the budget and transmit it to the

commissioner. The board of regents for elementary and secondary education, upon

recommendation of the commissioner of elementary and secondary education, shall provide

parameters for the overall budget request. Based on review and recommendation by the

commissioner, the board of regents shall approve the total budget and incorporate it into its

budget request to the governor and to the general assembly. Line item budgeting decisions shall

be the responsibility of the director.

      (j) Nothing in this section shall be deemed to limit or interfere with the rights of teachers

and other school employees to bargain collectively pursuant to chapters 9.3 and 9.4 of title 28 or

to allow the board of trustees or the director to abrogate any agreement by collective bargaining.

Employees at the William M. Davies school shall continue to be state employees and the

bargaining units which are presently established at the school shall remain intact.

 

     SECTION 4. Chapter 16-7.2 of the General Laws entitled "The Education Equity and

Property Tax Relief Act" is hereby amended by adding thereto the following sections:

 

     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 (a)(1) and the

amount to support high need students in (a)(2), which shall be multiplied by the district state

share ratio calculated pursuant to section 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

section 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 section 16-7.2-3 (1) and applying that amount to all resident

children eligible for USDA reimbursable school meals.

     (b) LEAs 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.

 

     16-7.2-4. Determination of state's share. -- For each district, the state's share of the

foundation education aid calculated pursuant to section 16-7.2-3 (a) shall use a calculation that

considers a district’s revenue generating capacity and concentration of high-need students. The

calculation is the square root of the sum of the state share ratio for the community calculation

(SSRC), pursuant to section 16-7-20, squared plus the district’s percentage of students eligible

for USDA reimbursable school meals in grades PK-6 (PK6FRPL) squared, divided by two.      

     For purposes of determining the state’s share, school district student data used in this

calculation shall include charter school and state school students. These ratios are used in the

permanent foundation education aid formula calculation described in section 16-7.2-5.

 

     16-7.2-5. Charter public schools, the William M. Davies, Jr. Career and Technical

High School, and the Metropolitan Regional Career and Technical Center. -- (a) Charter

public schools defined in chapter 16-77, the William M. Davies, Jr. Career and Technical High

School (Davies) and the Metropolitan Regional Career and Technical Center (the Met Center)

shall be funded pursuant to section 16-7.2-3. If the October 1 actual enrollment data for any

charter public school shows a ten percent (10%) or greater change from the prior year enrollment

which is used as the reference year average daily membership, the third and fourth quarter

payments to the charter public school will be adjusted to reflect actual enrollment. The state

share of the permanent foundation education aid shall be paid by the state directly to the charter

public schools, Davies, and the Met Center pursuant to section 16-7.2-9 and shall be calculated

using the state share ratio of the district of residence of the student as set forth in section 16-7.2-4.

The local share of education funding, as defined by the department of elementary and secondary

education and approved by the General Assembly, shall be paid to the charter public school,

Davies, and the Met Center by the district of residence of the student and shall be the local per

pupil cost calculated by dividing the local appropriation to education from property taxes net of

debt service and capital projects as defined in the uniform chart of accounts by the average daily

membership for each city and town, pursuant to section 16-7-22, for the reference year.

     (b) Local district payments to charter public schools, Davies, and the Met Center for each

district's students enrolled in these schools shall be made on a quarterly basis in July, October,

January and April; however, the first local district payment shall be made by August 15 instead of

July. Failure of the community to make the local district payment for its student(s) enrolled in a

charter public school, Davies, and/or the Met Center may result in the withholding of state

education aid pursuant to section 16-7-31.

 

     16-7.2-6. Categorical programs, state funded expenses. -- In addition to the foundation

education aid provided pursuant to section 16-7.2-3 the permanent foundation education aid

program shall provide direct state funding for:

     (a) Excess costs associated with special education students. Excess costs are defined

when an individual special education student’s cost shall be deemed to be "extraordinary."

Extraordinary costs are those educational costs that exceed the state approved threshold based on

an amount above five times the core foundation amount (total of core instruction amount plus

student success amount) The department of elementary and secondary education shall prorate the

funds available for distribution among those eligible school districts if the total approved costs for

which school districts are seeking reimbursement exceed the amount of funding appropriated in

any fiscal year;

     (b) Career and technical education costs to help meet initial investment requirements

needed to transform existing or create new comprehensive career and technical education

programs and career pathways in critical and emerging industries and to help offset the higher

than average costs associated with facilities, equipment maintenance and repair, and supplies

necessary for maintaining the quality of highly specialized programs that are a priority for the

state. The department shall recommend criteria for the purpose of allocating any and all career

and technical education funds as may be determined by the general assembly on an annual basis.

The department of elementary and secondary education shall prorate the funds available for

distribution among those eligible school districts if the total approved costs for which school

districts are seeking reimbursement exceed the amount of funding available in any fiscal year;

     (c) Programs to increase access to voluntary, free, high-quality pre-kindergarten

programs. The department shall recommend criteria for the purpose of allocating any and all early

childhood program funds as may be determined by the general assembly;

     (d) Central Falls Stabilization Fund is established to assure that appropriate funding is

available to support the community, including students from the community that attend the

charter schools, Davies, and the Met Center pursuant to section 16-7.2-5, due to concerns

regarding the city’s capacity to meet the local share of education costs. This fund requires that

the difference between education aid calculated pursuant to section 16-7.2-3 and education aid, as

of the effective date of the formula, shall be shared between the state and the city of Central Falls.

The state’s share of the fund will be paid directly to the Central Falls school district upon

verification that the city has transferred its share of the local contribution for education. At the

end of the transition period defined in section 16-7.2-7, the municipality will continue its

contribution pursuant to section 16-7-24; and

     (e) Excess costs associated with transporting students to out of district non-public schools

and within regional school districts. (1) This fund will provide state funding for the costs

associated with transporting students to out of district non-public schools, pursuant to title 16,

Chapter 21.1. The state will assume the costs of non-public out-of-district transportation for those

districts participating in the statewide system; and (2) This fund will provide direct state funding

for the excess costs associated with transporting students within regional school districts,

established pursuant to title 16, chapter 3. This fund requires that the state and regional school

district share equally the student transportation costs net any federal sources of revenue for these

expenditures. The department of elementary and secondary education shall prorate the funds

available for distribution among those eligible school districts if the total approved costs for

which school districts are seeking reimbursement exceed the amount of funding available in any

fiscal year.

     (f) Public school districts that are regionalized shall be eligible for a regionalization

bonus as set forth below.

     (1) As used herein, the term “regionalized” shall be deemed to refer to a regional school

district established under the provisions of chapter 16-3 including the Chariho Regional School

district.

     (2) For those districts that are regionalized as of July 1, 2010, the regionalization bonus

shall commence in FY2012. For those districts that regionalize after July 1, 2010, the

regionalization bonus shall commence in the first fiscal year following the establishment of a

regionalized school district as set forth section 16-3, including the Chariho Regional School

District.

     (3) The regionalization bonus in the first fiscal year shall be two percent (2.0%) of the

state’s share of the foundation education aid for the regionalized district as calculated pursuant to

sections 16-7.2-3 and 16-7.2-4 in that fiscal year.

     (4) The regionalization bonus in the second fiscal year shall be one percent (1.0%) of the

state’s share of the foundation education aid for the regionalized district as calculated pursuant to

sections 16-7.2-3 and 16-7.2-4 in that fiscal year.

     (5) The regionalization bonus shall cease in the third fiscal year.

     (6) The regionalization bonus for the Chariho regional school district shall be applied to

the state share of the permanent foundation education aid for the member towns.

     (7) The department of elementary and secondary education shall prorate the funds

available for distribution among those eligible regionalized school districts if the total approve

costs for which regionalized school districts are seeking a regionalization bonus exceed the

amount of funding appropriated in any fiscal year.

      (g) Categorical programs defined in (a) through (f) shall be funded pursuant to the

transition plan in section 16-7.2-7.

 

     16-7.2-7. Transition plan. -- The general assembly, shall annually determine the

appropriation of education aid pursuant to this chapter using a transition plan to begin in fiscal

year 2012, not to exceed seven (7) years for LEA’s for whom the calculated education aid

pursuant to section 16-7.2-3 is more than the education aid the LEA is receiving as of the

effective date of the formula, and ten (10) years for LEA's for whom the calculated education aid

pursuant to section 16-7.2-3 is less than the education aid the LEA is receiving as of the effective

date of the formula.

     The local share of funding pursuant to section 16-7.2-5 shall be transitioned

proportionately over a period not to exceed 5 years. The transition shall provide a combination of

direct aid to districts, funds for the categorical programs, and district savings through state-

assumed costs, as determined by the general assembly on an annual basis, Updates to any

components of the permanent foundation education aid formula, such as student data, property

values, and/or median family income, that result in an increase or decrease in state education aid

that impacts the total state and local contribution by more than three percent (3%) shall be

transitioned over a period of time not to exceed three (3) years.

 

      16-7.2-8. Accountability. -- (a) Pursuant to sections 16-7.1-3 and 16-7.1-5, the

department of elementary and secondary education shall use the uniform chart of accounts to

maintain fiscal accountability for education expenditures that comply with applicable laws and

regulations, including but not limited to the basic education program. This data shall be used to

develop criteria and priorities for cost controls, efficiencies, and program effectiveness. The

department of elementary and secondary education shall present this information in the form of

an annual report to the general assembly.

     (b) The department of elementary and secondary education shall establish and/or

implement program standards to be used in the oversight of the use of foundation aid calculated

pursuant to section 16-7.2-3. Such oversight will be carried out in accordance with the

progressive support and intervention protocols established in chapter 7.1 of this title.

 

     16-7.2-9. Applicability. -- This chapter applies to education aid for any city, town or

regional school district including the Central Falls state operated school district, charter schools,

the William M. Davies, Jr. Career and Technical High School, and the Metropolitan Regional

Career and Technical Center. Calculation and distribution of aid under §§ 16-7-20.5, 16-7.1-6,

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, 16-7.1-15, 16-7.1-16, 16-7.1-17,

16-7.1-18, 16-7.1-19, 16-67-4, and 16-77.1-2 is hereby suspended effective July 1, 2011, until

further action by the general assembly. Aid under this chapter will be paid pursuant to section

16-7-17, except that aid to the Central Falls state operated school district and charter schools,

Davies, and the Met Center pursuant to section 16-7.2-5 shall be paid in twelve (12) equal

installments on the first of each month.

 

     16-7.2-10. Reporting to the General Assembly. -- On or before November 15, 2010, the

department of education shall report to the senate president, speaker of the house, and chairs of

the Senate and House Finance Committees on the following: (a) The identification and evaluative

impact of alternative mechanisms to update or supplement the median family income factor relied

upon in the EWAV variable utilized in the permanent education aid formula in accordance with

this section; (b) An analysis of the feasibility, alternative financing mechanisms, and impact of

the Central Falls Stabilization Fund pursuant to this section; and, (c) a multi-year analysis of the

impact of the financing of charter schools and vocational schools, pursuant to this section, on

local school districts.

 

      SECTION 5. This act shall take effect upon passage.

     

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LC02294/SUB A/3

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