2015 -- H 5436

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LC000398

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO EDUCATION - THE EDUCATION EQUITY AND PROPERTY TAX RELIEF

ACT - SCHOOL FUNDING FORMULA

     

     Introduced By: Representatives Tanzi, Fogarty, Carson, Marshall, and Gallison

     Date Introduced: February 12, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-7.2-7 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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     16-7.2-7. Transition plan. -- (a) The general assembly shall annually determine the

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

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

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

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of the formula, and ten (10) years for LEA's for whom the calculated education aid pursuant to §

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16-7.2-3 is less than the education aid the LEA is receiving as of the effective date of the formula.

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      (b) The local share of funding pursuant to § 16-7.2-5 shall be transitioned

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proportionately over a period not to exceed five (5) years. The transition shall provide a

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combination of direct aid to districts, funds for the categorical programs, and district savings

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through state-assumed costs, as determined by the general assembly on an annual basis. Updates

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

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

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

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

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      (c) For districts that are converting from a half-day to a full-day kindergarten program

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for the 2014-2015 school year and after, as defined by § 16-99-4, the increase in aid provided

 

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pursuant to the formula for the increased reference average daily membership due to the

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conversion of the kindergarten students from 0.5 full-time equivalent to 1.0 full-time equivalent is

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not subject to the transition plan in subsection (a); instead, the increased kindergarten full-time

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equivalents will be funded at the fully transitioned value of the formula beginning in FY 2017.

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     (d) Notwithstanding the provisions of subsection (a) of this section, the general assembly

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recognizes that the LEA's for whom the calculated education aid pursuant to § 16-7.2-3 is less

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than the education aid the LEA was receiving as of the effective date of the formula has been

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unduly burdensome on said LEA's. Therefore, for the fiscal years 2016, 2017, and 2018, the

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calculated education aid pursuant to § 16-7.2-3 shall remain the same as in fiscal year 2015.

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     SECTION 2. This act shall take effect upon passage.

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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 - SCHOOL FUNDING FORMULA

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     This act would freeze the amount of education aid for local school agencies that are

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scheduled to receive less aid under the funding formula. The education aid would be frozen at the

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rate provided in fiscal year 2015 for a period of three (3) years.

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     This act would take effect upon passage.

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