2013 -- H 5466

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LC01150

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

     Introduced By: Representatives Marshall, Almeida, Gallison, Malik, and Valencia

     Date Introduced: February 14, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-7.2-6 of the General Laws in Chapter 16-7.2 entitled "The

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

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

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

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program shall provide direct state funding for:

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

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

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

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

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

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

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

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any fiscal year;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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foundation education aid formula, including but not limited to transportation, facility

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maintenance, and retiree health benefits shall be shared between the state and the city of Central

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Falls. The fund shall be annually reviewed to determine the amount of the state and city

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

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

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in section 16-7.2-7, the municipality will continue its contribution pursuant to section 16-7-24;

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and

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

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

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

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

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

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

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

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

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

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

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

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fiscal year.

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

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bonus as set forth below.

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

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

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district.

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

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shall commence in FY 2012. For those districts that regionalize after July 1, 2010, the

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

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

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District.

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

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

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

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

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

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sections 16-7.2-3 and 16-7.2-4 in that fiscal year. In the third fiscal year and thereafter, the

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regionalization bonus shall be calculated as it would be for the third year and subsequent years

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thereafter pursuant to the provisions of section 16-7-20.5.

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

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

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

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

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

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

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amount of funding appropriated in any fiscal year.

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

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transition plan in section 16-7.2-7.

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     SECTION 2. This act shall take effect upon passage.

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LC01150

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

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     This act would modify the method for calculating the regionalization bonus given to

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regionalized school districts after their first two (2) fiscal years.

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     This act would take effect upon passage.

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LC01150

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