ARTICLE 12 AS AMENDED

 

RELATING TO EDUCATION AID

 

     SECTION 1. Sections 16-2-9.4 and 16-2-34 of the General Laws in Chapter 16-2 entitled "School

Committees and Superintendents" are hereby amended to read as follows:

 

     16-2-9.4. School district accounting compliance. -- (a) The office of auditor general

and the department of elementary and secondary education shall promulgate a uniform system of

accounting, including a chart of accounts based on the recommendations of the advisory council

on school finance, and require all accounts of the school districts, regional school districts, state

schools and charter schools to be kept in accordance therewith; provided, that in any case in

which the uniform system of accounting is not practicable, the office of auditor general in

conjunction with the department of elementary and secondary education shall determine the

manner in which the accounts shall be kept. The uniform system of accounting shall also include

a standardized budget process to ensure districts can annually assess investment priorities and

incorporate long range planning.

      (b) For the purpose of securing a uniform system of accounting and a chart of accounts

the advisory council on school finances, as defined in section 16-2-9.2 may make such surveys of

the operation of any school districts, regional school district, state school or charter school as they

shall deem necessary.

     (c) Upon completion of the implementation of the uniform chart of accounts, all the

school districts, regional school districts, state schools, and/or charter schools, shall implement a

regents-approved budget model, and use best practices established by the department of education

for long range planning, budget development, and budget administration and reporting.

      (c)(d) If any school district, regional school district, state school or charter school fails to

install and maintain the uniform system of accounting, including a chart of accounts and

approved budget model, or fails to keep its accounts and interdepartmental records, or refuses or

neglects to make the reports and to furnish the information in accordance with the method

prescribed by the office of auditor general and the department of education or hinders or prevents

the examination of accounts and financial records, the auditor general and the commissioner of

education and/or their respective designee(s) shall may make a report to the superintendent of

schools of the local education agency, the school committee chairperson, the mayor or town

manager, and the president of the town council, and/or for a charter school, to the board of

trustees or directors, as applicable, the board of regents for elementary and secondary education

in writing, specifying the nature and extent of the failure, refusal, neglect, hindrance, or

prevention, and the board of regents commissioner is hereby authorized and directed to review

the matter so reported. If the regents commissioner shall find that failure, refusal, neglect,

hindrance, or prevention exists and that the school district, regional school district, state school or

charter school should properly comply in the matter so reported, the regents commissioner shall

direct the school district, regional school district, state school or charter school, in writing, to so

comply. If the failure, refusal, neglect, hindrance, or prevention shall continue for a period of ten

(10) days following the written direction, the regents commissioner may withhold distribution of

state aid to said school district, regional school district, state school or charter school.

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

division of municipal finance shall conduct periodic reviews and analysis of school revenues and

expenses. The department shall also review and monitor compliance with the approved budget

model and best practices. The department shall identify those local education agencies considered

to be at risk of a year-end deficit or a structural deficit that could impact future years. Such

potential deficits shall be identified based on the periodic reviews, which may also include on-site

visits and reporting in accordance with the provisions of section 45-12-22.2. Potential deficits

shall be reported to the office of municipal finance, office of auditor general, superintendent,

chairman of the school committee, mayor or town manager, and the president of the town council,

of the applicable school district, regional school district, or state school, and/or for a charter

school, to the board of trustees or directors, as applicable.

 

     16-2-34. Central Falls School District board of trustees. -- (a) There is hereby

established a seven (7) member board of trustees, which shall govern the Central Falls School

District. With the exception of those powers and duties reserved by 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.

Notwithstanding any provision of law to the contrary, the commissioner of elementary and

secondary education, as the executive agent of the board of regents for elementary and secondary

education, is authorized to exercise in whole or in part care, control, and management over the

public schools of the Central Falls school district within the scope of authority of the board of

trustees and board of regents, whenever the commissioner deems such intervention to be

necessary and appropriate.

      (b) 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, provided however, that at least four (4) of the members shall be residents of the city and

parents of current or former Central Falls public school students. The remaining three (3) shall be

appointed at large.

      (c) The board of regents shall provide parameters for overall budget requests, approve

the budget, and otherwise participate in budget development.

      (d) The commissioner of elementary and secondary education shall recommend

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

development.

      (e) The commissioner shall approve the process for selection of the superintendent.

      (f) The board of trustees shall meet monthly and serve without compensation. The board

of trustees shall have broad policy making authority for the operation of the school, as well as the

following powers and duties:

      (1) To identify the educational needs of the district;

      (2) To develop educational policies to meet the needs of students in the school district;

      (3) To appoint a superintendent to serve as its chief executive officer and to approve

assistant and associate superintendents from nominations made by the superintendent;

      (4) To provide policy guidance and otherwise participate in budget development; and

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

the highest possible quality.

      (g) The superintendent shall 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, however, that the terms

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

and secondary education.

      (h) It shall be the responsibility of the superintendent to manage and operate the school

on a day-to-day basis. The superintendent's duties shall include the following:

      (1) To be responsible for the care, supervision, and management of the schools;

      (2) 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;

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

superintendents and to appoint all other school personnel;

      (4) To provide for the evaluation of all school district personnel;

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

operation of the school;

      (6) To prepare a budget and otherwise participate in budget development as required,

and to authorize purchases consistent with the adopted school district budget;

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

operation of the schools, and to report annually on the educational progress of the schools;

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

directions and feedback on the operation of the schools;

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

administrators and faculty in the school, to annually prepare a budget. The board of trustees shall

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 superintendent; and

      (10) To negotiate, along with the chairperson of the board of trustees and his or her

appointed designee, all district employment contracts, which contracts shall be subject to the

approval of the commissioner of elementary and secondary education with the concurrence of the

board of regents.

      (i) Nothing in this section shall be deemed to limit or otherwise interfere with the rights

of teachers and other school employees to bargain collectively pursuant to chapters 9.3 and 9.4 of

title 28, to exercise rights afforded under any statute including, but not limited to, Title 16, or to

allow the commissioner, board of trustees or the superintendent to abrogate any agreement by

collective bargaining.

      (j) The appointment of the special state administrator for the Central Falls School

District and the Central Falls School District Advisory Group, created by chapter 312 of the

Rhode Island Public Laws of 1991, will no longer be in effect upon the selection and appointment

of the board of trustees created in this section. All powers and duties of the special state

administrator and the Central Falls School District Advisory Group are hereby transferred and

assigned to the board of trustees created in this section, upon the selection and appointment of

that board.

 

     SECTION 2. Section 45-12-22.2 of the General Laws in Chapter 45-12 entitled

"Indebtedness of Towns and Cities" is hereby amended to read as follows:

 

     45-12-22.2. Monitoring of financial operations -- Corrective action. -- (a) The chief

financial officer of each municipality and each school district within the state shall continuously

monitor their financial operations by tracking actual versus budgeted revenue and expense.

      (b) The chief financial officer of the municipality shall submit a report on a monthly

basis to the municipality's chief executive officer, each member of the city or town council, and

school district committee certifying the status of the municipal budget from all fund sources,

including the school department budget from all fund sources, or regional school district budget

from all fund sources. The chief financial officer of the municipality shall also submit a quarterly

report on or before the 25th day of the month succeeding the end of each fiscal quarter to the

division of municipal finance, the commissioner of education, and the auditor general certifying

the status of the municipal budget, including the school budget that has been certified by the

school department. Each quarterly report submitted must be signed by the chief executive officer,

chief financial officer as well as the superintendent of the school district and chief financial

officer for the school district. The report has to be submitted to the city/town council president

and the school committee chair. It is encouraged, but not required, to have the council

president/school committee chair sign the report. The chief financial officer of the school

department or school district shall certify the status of the school district's budget and shall assist

in the preparation of these reports. The monthly and quarterly reports shall be in a format

prescribed by the division of municipal finance, the commissioner of education, and the state

auditor general. The reports shall contain a statement as to whether any actual or projected

shortfalls in budget line items are expected to result in a year-end deficit, the projected impact on

year-end financial results including all accruals and encumbrances, and how the municipality and

school district plans to address any such shortfalls. In the event that the school reporting is not

provided, then state education aid may be withheld pursuant to the provisions of section 16-2-

9.4(d).

      (c) If any of the quarterly reports required under subsection (b) above project a year-end

deficit, the chief financial officer of the municipality shall submit to the state division of

municipal finance, the commissioner of education, and the auditor general a corrective action

plan signed by the chief executive officer and chief financial officer on or before the last day of

the month succeeding the close of the fiscal quarter, which provides for the avoidance of a year-

end deficit or structural deficit that could impact future years, and the school superintendent shall

also comply with the provisions of section 16-2-11(c) to assist in this effort. The plan may

include recommendations as to whether an increase in property taxes and/or spending cuts should

be adopted to eliminate the deficit. The plan shall include a legal opinion by municipal counsel

that the proposed actions under the plan are permissible under federal, state, and local law. The

state division of municipal affairs may rely on the written representations made by the

municipality in the plan and will not be required to perform an audit.

      (d) If the division of municipal finance concludes the plan required hereunder is

insufficient and/or fails to adequately address the financial condition of the municipality, the

division of municipal finance can elect to pursue the remedies identified in section 45-12-22.7.

      (e) The reports required shall include the financial operations of any departments or

funds of municipal government including the school department or the regional school district,

notwithstanding the status of the entity as a separate legal body. This provision does not eliminate

the additional requirements placed on local and regional school districts by sections 16-2-9(f) and

16-3-11(e)(3).

 

     SECTION 3. Section 16-7-39 of the General Laws in Chapter 16-7 entitled “Foundation

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

 

     16-7-39. Computation of school housing aid ratio. -- For each community, the percent

of state aid for school housing costs shall be computed in the following manner:

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

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

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

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

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

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

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

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

annually at the start of each fiscal year thereafter, the thirty percent (30%) floor on said housing

aid share shall be increased by five percent (5%) increments each year until said floor on the

housing aid share ratio reaches a minimum of not less than forty percent (40%). This provision

shall apply only to school housing projects completed after June 30, 2010 that received approval

from the board of regents prior to June 30, 2012. Provided further, for the fiscal year beginning

July 1, 2012 and for subsequent fiscal years, the minimum housing aid share shall be thirty-five

percent (35%) for all projects receiving board of regents approval after June 30, 2012. The

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

 

     SECTION 4. Section 16-7.2-6 of the General Laws in Chapter 35-4 entitled “The

Education Equity and Property Tax Relief Act” is hereby amended to read as follows:

 

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

education aid provided pursuant to § 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 § 16-7.2-5, due to concerns regarding the

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

calculated pursuant to section 16-7.2-3 and funding for costs outside the permanent foundation

education aid formula, including but not limited to transportation, facility maintenance, and

retiree health benefits, that the difference between education aid calculated pursuant to § 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. The fund shall be annually reviewed to determine the amount of the state and city

appropriation. The state's share of this fund may be supported through a reallocation of current

state appropriations to the Central Falls school district. At the end of the transition period defined

in § 16-7.2-7, the municipality will continue its contribution pursuant to § 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 FY 2012. 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

§§ 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

§§ 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 § 16-7.2-7.

 

     SECTION 5. Sections 16-7-17, 16-7-38 and 16-7-41 of the General Laws in Chapter 16-7

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

 

     16-7-17. Time of payment of state's share of the basic program and approved

expenditures. -- There shall be paid by the state to each community in twelve (12) monthly

installments an amount as determined by law to be the state's share of the cost of the basic

program for the reference year and all approved expenditures in excess of the basic program for

the reference year, provided, however, that these payments to a community shall be reduced by

the amount of funds deposited by the department into the local education agency EPSDT account

in accordance with section 40-8-18 on behalf of the community. The July and August payments

payment shall be two and one half percent (2 1/2%) two and fifty-four hundredths percent

(2.54%) of the state's share based upon the estimated pupil data, valuation data, and expenditure

data for the reference year and the September August through June payments shall each be nine

and one half percent (9 1/2%) eight and eighty-six hundredths percent (8.86%) of the aid due and

payable based upon the data for the reference year, except for the city of East Providence which

shall be paid during October and April in accordance with chapter 344 of the Public Laws of

1982.

 

     16-7-38. Time for payments to communities. -- There shall be paid during October and

April on September 15 and March 15 of each year one-half (1/2) of the amount to which each

community is entitled in terms of the computation in section 16-7-41.

 

     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 and section 16-7-15 through

section 16-7-34.3 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 6. 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 except to the extent permitted by section sections 16-7-23.1 and 16-7-23.2.

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. Provided, however, that

notwithstanding any provision of this title to the contrary, debt service that is no longer carried on

the books of any school district shall not be included in any school districts’ annual budget, nor

shall non-recurring debt service be included in maintenance of effort as set forth in this chapter,

nor shall any non-recruiting debt service be included in the operating budget of any school

district. For the purposes set forth above non-recurring capital lease payments shall be considered

non-recurring debt service. The courts of this state shall enforce this section by writ of mandamus

means of injunctive relief.

      (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 7. Chapter 16-7 of the General Laws entitled "Foundation Level School

Support" is hereby amended by adding thereto the following section:

 

     16-7-23.2. School deficit reduction -- Maintenance of effort provision. A city, town,

or regional school district appropriating authority may appropriate supplemental funds to

eliminate or reduce a school budget deficit. To the extent that such a supplemental appropriation

represents payment of past annual expenditure, the payment shall not be used in the computation

of the maintenance of effort requirements established by section 16-7-23.

 

     SECTION 8. Chapter 16-25 of the General Laws entitled "EDUCATION OF

CHILDREN WHO ARE DEAF OR BLIND" is hereby repealed in its entirety.

 

CHAPTER 16-25

Education of Children Who are Deaf or Blind

 

     16-25-1. Appointment of state beneficiaries at special institutions. -- The governor, on

recommendation of the department of elementary and secondary education and upon application

of the parent or guardian, may appoint any child who is deaf, blind, or visually impaired being a

legal resident of this state, who shall appear to the department to be a fit subject for education, as

a state beneficiary at any suitable institution or school now established or that may be established

either within or without the state, for the period that he or she may determine, within the limit of

ten (10) years; provided, that he or she may, upon the special recommendation of the department,

extend the period and that he or she shall have the power to revoke any appointment at any time

for cause.

 

     16-25-2. Supervision of beneficiaries -- Reports to general assembly. -- The

department of elementary and secondary education is invested with the duty and responsibility of

supervising the education of all those beneficiaries, and no child appointed as provided in section

16-25-1 shall be withdrawn from any institution or school except with its consent, or the consent

of the governor; and the department shall annually report its doings under this chapter to the

general assembly, with any further information in relation to the several institutions at which

these beneficiaries have been placed that may be deemed desirable.

 

     16-25-3. Repealed..

 

     16-25-4. Care and instruction of children who are blind or visually impaired under

school age. -- The department of elementary and secondary education shall have power to

provide for the suitable care, maintenance, and instruction of babies and children under school

age residing in this state who may be born blind or become blind or visually impaired, in any case

where by reason of lack of means or other cause the parent or parents of the children may be

unable to properly care for, maintain, and educate the children.

 

     16-25-5. Contracts for care of children who are blind or visually impaired. -- For the

purpose of providing care, maintenance, and education of children who are blind or visually

impaired, the department of elementary and secondary education shall have power to contract

with any institution having or furnishing special education and related services in this or any

other state at a contract price within the amount appropriated.

 

     16-25-6. Payment of expenses of chapter. -- Each community, as defined in chapter 7 of

this title, shall contribute to the department of elementary and secondary education in accordance

with regulations to be prescribed by the department.

 

     16-25-7. Repealed..

 

     SECTION 9. Section 16-3.1-11 of the General Laws in Chapter 16-3.1 entitled

"Cooperative Service Among School Districts" is hereby amended to read as follows:

 

     16-3.1-11. Urban collaborative. -- Notwithstanding the provisions of any general or

special law to the contrary, the school committees of the cities of Providence, Pawtucket, East

Providence, Central Falls and other Rhode Island school districts as may be approved for

inclusion by existing member districts in accordance with collaborative bylaws are authorized and

empowered to continue and/or initiate cooperative efforts to provide alternate education programs

and/or diagnostic services required by law or regulation for students achieving limited success in

traditional settings and to do all things necessary including, but not limited to utilization of

technology, including television, all on a collaborative basis. The various school committees may

assign and delegate to their respective school committee chairs or designee or superintendents of

schools or designee, acting as a regional board any duties, responsibilities, and powers that the

committees may deem necessary for the conduct, administration, and management of the urban

collaborative. Beginning on July 1, 2013 the urban collaborative shall be funded pursuant to the

provisions of section 16-7.2-3. The state share of the permanent foundation education aid shall be

paid directly to the urban collaborative pursuant to the provisions of section 16-7.2-7. The local

school district shall transfer the difference between the calculated state share of the permanent

foundation education aid and the amount calculated pursuant to the provisions of section 16-7.2-7

to the urban collaborative, until the transition of the state share is complete. In addition, the local

school district shall pay the local share of education funding to the urban collaborative as outlined

in section 16-7.2-5.

 

     SECTION 10. This article shall take effect on July 1, 2012.