2021 -- S 0350

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LC000829

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

     

     Introduced By: Senators Pearson, DiPalma, Cano, Gallo, Murray, Seveney, and Rogers

     Date Introduced: February 25, 2021

     Referred To: Senate Education

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 16-7.2-3, 16-7.2-4, 16-7.2-5, 16-7.2-6 and 16-7.2-8 of the General

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Laws in Chapter 16-7.2 entitled "The Education Equity and Property Tax Relief Act" are hereby

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amended to read as follows:

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     16-7.2-3. Permanent foundation education aid established.

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     (a) Beginning in the 2012 fiscal year, the following foundation education-aid formula shall

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take effect. The foundation education aid for each district shall be the sum of the core instruction

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amount in subdivision (a)(1) and the amount to support high-need students in subdivision (a)(2),

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which shall be multiplied by the district state-share ratio calculated pursuant to § 16-7.2-4 to

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determine the foundation aid.

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     (1) The core-instruction amount shall be an amount equal to a statewide, per-pupil core-

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instruction amount as established by the department of elementary and secondary education,

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derived from the average of northeast regional expenditure data for the states of Rhode Island,

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Massachusetts, Connecticut, and New Hampshire from the National Center for Education Statistics

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(NCES) that will adequately fund the student instructional needs as described in the basic education

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program and multiplied by the district average daily membership as defined in § 16-7-22.

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Expenditure data in the following categories: instruction and support services for students,

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instruction, general administration, school administration, and other support services from the

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National Public Education Financial Survey, as published by NCES, and enrollment data from the

 

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Common Core of Data, also published by NCES, will be used when determining the core-

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instruction amount. The core-instruction amount will be updated annually. For the purpose of

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calculating this formula, school districts' resident average daily membership shall exclude charter

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school and state-operated school students.

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     (2) The amount to support high-need students beyond the core-instruction amount shall be

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determined by multiplying a student success factor of forty percent (40%) by the core instruction

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per-pupil amount described in subdivision (a)(1) and applying that amount for each resident child

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either: whose

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     (i) Whose family income is at or below one hundred eighty-five percent (185%) of federal

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poverty guidelines,; or hereinafter referred to as "poverty status."

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     (ii) Identified as an English language learner, as defined in the Rhode Island department of

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elementary and secondary education (department) regulations.

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     (b) The department of elementary and secondary education shall provide the following as

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part of its budget submission pursuant to § 35-3-4;

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     (1) An an estimate of the foundation education aid cost as part of its budget submission

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pursuant to § 35-3-4. The estimate shall include the most recent data available as well as an

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adjustment for average daily membership growth or decline based on the prior year experience.;

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and

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     (2) The amount of the state and local share of education funding calculated for each local

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education agency (LEA) receiving state education aid in the budget. This information shall also be

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provided to each LEA and published on the department’s website.

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     (c) In addition, the department shall report updated figures based on the average daily

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membership as of October 1 by December 1. The general assembly shall hereby establish an

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education aid fund to be administered by the department of education for the purposes of addressing

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increases in LEA enrollment of at least twenty-five (25) students that is realized on the October 1

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data update, but was not included in the enacted budget; provided however, that if the general

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assembly’s appropriation to this fund is not sufficient to compensate for all increases in enrollment

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described in this subsection, the disbursements shall be prorated to LEAs.

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     (d) Cities and towns shall be required to appropriate sufficient funds to meet their local

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share of education funding, calculated pursuant to subsection (b)(2) of this section, by FY 2023, or

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by the timeline contained in the education funding plan that is approved by the director of revenue,

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whichever is later. If a municipality will not be able to appropriate such funds, the chief executive

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of the city or town shall notify the department and director of revenue (director) by November 1 of

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the preceding fiscal year. The chief executive, in consultation with the department and the director,

 

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shall develop an education-funding plan for the municipality to meet its local share within five (5)

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years. The plan shall be approved by the director. In extraordinary circumstances, the director may

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approve a period greater than five (5) years, provided that the director notifies the governor,

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president of the senate, and speaker of the house of the extraordinary circumstances that prevent

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the municipality from meeting their local share within a five (5) year period.

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     (d)(e) Local education agencies may set aside a portion of funds received under subsection

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(a) to expand learning opportunities such as after school and summer programs, full-day

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kindergarten and/or multiple pathway programs, provided that the basic education program and all

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other approved programs required in law are funded.

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     (e)(f) The department of elementary and secondary education shall promulgate such

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regulations as are necessary to implement fully the purposes of this chapter.

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     (g) The department shall review the student success factor of forty percent (40%) provided

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in subsection (a)(2) of this section to determine whether that weight ensures local education

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agencies receive the funding necessary to meet students’ instructional needs. The department shall

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complete its review and report its findings to the governor, the president of the senate, and the

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speaker of the house by October 1, 2021.

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     16-7.2-4. Determination of state's share.

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     (a) For each district, the state's share of the foundation education aid calculated pursuant

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to § 16-7.2-3(a) shall use a calculation that considers a district's revenue-generating capacity and

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concentration of high-need students. The calculation is the square root of the sum of the state-share

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ratio for the community calculation, pursuant to § 16-7-20, squared plus the district's percentage of

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students in grades PK-6 in poverty status squared, divided by two.

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     (b) For purposes of determining the state's share, school district student data used in this

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

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

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     (c) In any given fiscal year, the total education aid paid to a local education agency,

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including distributed categorical funds, may not be reduced by more than one percent (1%) of the

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municipal education appropriation to the local education agency in the previous fiscal year.

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

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High School, and the Metropolitan Regional Career and Technical Center.

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     (a) Charter public schools, as defined in chapter 77 of this title, the William M. Davies, Jr.

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Career and Technical High School (Davies), and the Metropolitan Regional Career and Technical

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Center (the Met Center) shall be funded pursuant to § 16-7.2-3. If the October 1 actual enrollment

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

 

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enrollment which is used as the reference year average daily membership, the last six (6) monthly

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

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

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schools, Davies, and the Met Center pursuant to § 16-7.2-9 and shall be calculated using the state-

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share ratio of the district of residence of the student as set forth in § 16-7.2-4. The department of

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elementary and secondary education shall provide the general assembly with the calculation of the

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state share of permanent foundation education aid for charter public schools delineated by school

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district.

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     (b) The local share of education funding shall be paid to the charter public school, Davies,

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and the Met Center by the district of residence of the student and shall be the local, per-pupil cost

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calculated by dividing the local appropriation to education from property taxes, net of debt service,

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and capital projects, as defined in the uniform chart of accounts by the average daily membership

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

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     (c) Beginning with new enrollments for the 2022-2023 academic year, the local share of

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education funding shall be paid to charter public schools based upon a comparison of performance

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data between the specific school from which the student is coming and the specific charter school

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that will be receiving the student. For purposes of this subsection, performance shall be defined

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pursuant to § 16-97.1-1.

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     (1) If the receiving charter school has outperformed the student’s specific school in each

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of the prior two (2) academic years, the local share of education funding paid to the receiving

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charter school shall be one hundred percent (100%) of the local, per-pupil cost described in

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subsection (b) of this section.

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     (2) If the student’s specific school has outperformed the receiving charter in each of the

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prior two (2) academic years, the local share of education funding paid to the receiving charter

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school shall be fifty percent (50%) of the local, per-pupil cost described in subsection (b) of this

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section.

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     (3) In any fiscal year, no school district's total charter school expenses, defined as the sum

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of tuition and state education aid paid to charter schools for students from that district, shall exceed

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nine percent (9%) of the district's adopted budget; however, if the council on elementary and

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secondary education determines that the school district is in the lowest ten percent (10%) of all

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statewide student performance scores released in each of the two (2) consecutive academic years

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prior to the date the student submits the charter school application, the school district's total charter

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school expense may exceed nine percent (9%) of the district’s adopted budget, provided that it shall

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not exceed eighteen percent (18%); provided further, if, in FY 2022, any district’s total charter

 

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school expenses exceed the nine percent (9%) or eighteen percent (18%) caps prescribed in this

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subsection, no new enrollments shall be allowed from that district to charter schools until the

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district’s charter school expenses are in compliance with the caps in this subsection.

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     (c)(d) Beginning in FY 2017, there shall be a reduction to the local per pupil funding paid

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by the district of residence to charter public schools, Davies, and the Met Center. This reduction

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shall be equal to the greater (i) Of seven percent (7%) of the local, per-pupil funding of the district

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of residence pursuant to subsection (b) or (ii) The per-pupil value of the district's costs for non-

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public textbooks, transportation for non-public students, retiree health benefits, out-of-district

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special-education tuition and transportation, services for students age eighteen (18) to twenty-one

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(21) years old, pre-school screening and intervention, and career and technical education, tuition

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and transportation costs, debt service and rental costs minus the average expenses incurred by

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charter schools for those same categories of expenses as reported in the uniform chart of accounts

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for the prior preceding fiscal year pursuant to § 16-7-16(11) and verified by the department of

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elementary and secondary education. In the case where audited financials result in a change in the

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calculation after the first tuition payment is made, the remaining payments shall be based on the

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most recent audited data. For those districts whose greater reduction occurs under the calculation

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of (ii), there shall be an additional reduction to payments to mayoral academies with teachers who

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do not participate in the state teacher's retirement system under chapter 8 of title 36 equal to the

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per-pupil value of teacher retirement costs attributable to unfunded liability as calculated by the

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state's actuary for the prior preceding fiscal year.

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

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

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

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

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

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education aid pursuant to § 16-7-31.

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     (e) Beginning in FY 2017, school districts with charter public school, Davies, and the Met

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Center enrollment, that, combined, comprise five percent (5%) or more of the average daily

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membership as defined in § 16-7-22, shall receive additional aid for a period of three (3) years. Aid

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in FY 2017 shall be equal to the number of charter public school, open-enrollment schools, Davies,

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or the Met Center students as of the reference year as defined in § 16-7-16 times a per-pupil amount

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of one hundred seventy-five dollars ($175). Aid in FY 2018 shall be equal to the number of charter

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public school, open-enrollment schools, Davies, or the Met Center students as of the reference year

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as defined in § 16-7-16 times a per-pupil amount of one hundred dollars ($100). Aid in FY 2019

 

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shall be equal to the number of charter public school, open-enrollment schools, Davies, or the Met

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Center students as of the reference year as defined in § 16-7-16 times a per-pupil amount of fifty

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dollars ($50.00). The additional aid shall be used to offset the adjusted fixed costs retained by the

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districts of residence.

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     16-7.2-6. Categorical programs, state funded expenses.

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     In addition to the foundation education aid provided pursuant to § 16-7.2-3, the permanent

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foundation education-aid program shall provide direct state funding for:

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

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

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costs are those educational costs that exceed the state-approved threshold based on an amount

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above five times the core foundation amount (total of core-instruction amount plus student success

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amount). The department of elementary and secondary education shall prorate the funds available

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for 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 appropriated in any fiscal year;

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and the department of elementary and secondary education shall also collect data on those

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educational costs that exceed the state-approved threshold based on an amount above two (2), three

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(3), and four (4) times the core-foundation amount;

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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 state.

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The department shall develop criteria for the purpose of allocating any and all career and technical

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education funds as may be determined by the general assembly on an annual basis. The department

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of elementary and secondary education shall prorate the funds available for distribution among

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those eligible school districts if the total approved costs for which school districts are seeking

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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 programs.

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

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program funds as may be determined by the general assembly;

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     (d) Central Falls, Davies, and the Met Center Stabilization Fund is established to ensure

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that appropriate funding is available to support their students. Additional support for Central Falls

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is needed due to concerns regarding the city's capacity to meet the local share of education costs.

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This fund requires that education aid calculated pursuant to § 16-7.2-3 and funding for costs outside

 

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the permanent foundation education-aid formula, including, but not limited to, transportation,

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

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Central 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 state

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

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16-7.2-7, the municipality will continue its contribution pursuant to § 16-7-24. Additional support

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for the Davies and the Met Center is needed due to the costs associated with running a stand-alone

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high school offering both academic and career and technical coursework. The department shall

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recommend criteria for the purpose of allocating any and all stabilization funds as may be

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determined by the general assembly;

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

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This fund will provide state funding for the costs associated with transporting students to out-of-

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district non-public schools, pursuant to chapter 21.1 of this title. The state will assume the costs of

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non-public out-of-district transportation for those districts participating in the statewide system.

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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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     (f) Excess costs associated with transporting students within regional school districts. This

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fund will provide direct state funding for the excess costs associated with transporting students

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within regional school districts, established pursuant to chapter 3 of this title. This fund requires

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that the state and regional school district share equally the student transportation costs net any

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federal sources of revenue for these expenditures. The department of elementary and secondary

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education shall prorate the funds available for distribution among those eligible school districts if

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the total approved costs for which school districts are seeking reimbursement exceed the amount

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of funding available in any fiscal year;

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

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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 3 of this title, including the Chariho Regional

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School 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 in chapter 3 of this title, including the Chariho Regional

 

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School 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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§§ 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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§§ 16-7.2-3 and 16-7.2-4 in that fiscal year;

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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; and

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

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

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which regionalized school districts are seeking a regionalization bonus exceed the amount of

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funding appropriated in any fiscal year;

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     (h) Additional state support for English learners (EL). The amount to support EL students

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shall be determined by multiplying an EL factor of ten percent (10%) by the core-instruction per-

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pupil amount defined in § 16-7.2-3(a)(1) and applying that amount of additional state support to

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EL students identified using widely adopted, independent standards and assessments identified by

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the commissioner. All categorical funds distributed pursuant to this subsection must be used to

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provide high-quality, research-based services to EL students and managed in accordance with

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requirements set forth by the commissioner of elementary and secondary education. The

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department of elementary and secondary education shall collect performance reports from districts

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and approve the use of funds prior to expenditure. The department of elementary and secondary

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education shall ensure the funds are aligned to activities that are innovative and expansive and not

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utilized for activities the district is currently funding. The department of elementary and secondary

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education shall prorate the funds available for distribution among eligible recipients if the total

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calculated costs exceed the amount of funding available in any fiscal year;

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     (i) State support for school resource officers. For purposes of this subsection, a school

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resource officer (SRO) shall be defined as a career law enforcement officer with sworn authority

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who is deployed by an employing police department or agency in a community-oriented policing

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assignment to work in collaboration with one or more schools. School resource officers should have

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completed at least forty (40) hours of specialized training in school policing, administered by an

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accredited agency, before being assigned. Beginning in FY 2019, for a period of three (3) years,

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school districts or municipalities that choose to employ school resource officers shall receive direct

 

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state support for costs associated with employing such officers at public middle and high schools.

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Districts or municipalities shall be reimbursed an amount equal to one-half (1/2) of the cost of

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salaries and benefits for the qualifying positions. Funding will be provided for school resource

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officer positions established on or after July 1, 2018, provided that:

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     (1) Each school resource officer shall be assigned to one school:

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     (i) Schools with enrollments below one thousand twelve hundred (1,200) students shall

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require one school resource officer;

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     (ii) Schools with enrollments of one thousand twelve hundred (1,200) or more students

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shall require two school resource officers;

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     (2) School resource officers hired in excess of the requirement noted above shall not be

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eligible for reimbursement; and

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     (3) Schools that eliminate existing school resource officer positions and create new

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positions under this provision shall not be eligible for reimbursement. ; and

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     (j) Categorical programs defined in subsections (a) through (g) shall be funded pursuant to

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the transition plan in § 16-7.2-7.

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     16-7.2-8. Accountability.

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     (a) Pursuant to §§ 16-7.1-3 and 16-7.1-5, the department of elementary and secondary

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education (department) shall use the uniform chart of accounts to maintain fiscal accountability for

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education expenditures that comply with applicable laws and regulations, including but not limited

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to the basic education program. This data shall be used to develop criteria, and priorities, and

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benchmarks specific to each local education agency (LEA) to improve for cost controls,

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efficiencies, and program effectiveness. The department of elementary and secondary education

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shall present this the LEA-specific information in the form of an annual report to the LEA to which

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it applies and provide a summary of all LEA reports to the governor and the general assembly,

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annually, beginning on August 1, 2022.

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

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

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calculated pursuant to § 16-7.2-3. The department shall propose an incentive fund structure to the

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general assembly by December 1, 2022 that provides for the state to share in an LEA’s non-core

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costs provided that the LEA meets benchmarks developed by the department pursuant to subsection

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(a) of this section. Such oversight Oversight will be carried out for all LEA's including those

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receiving in accordance with the progressive support and intervention protocols established in

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chapter 7.1 of this title.

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     SECTION 2. Title 16 of the General Laws entitled "EDUCATION" is hereby amended by

 

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adding thereto the following chapter:

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CHAPTER 22.3

3

THE BASIC EDUCATION PROGRAM

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     16-22.3-1. Definitions.

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     For the purposes of this chapter:

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     (1) The “basic education program” means a set of regulations promulgated by the council

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on elementary and secondary education that establishes minimum standards for the Rhode Island

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public education system.

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     (2) The "council" means the council on elementary and secondary education.

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     (3) The "department" means the department of elementary and secondary education.

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     16-22.3-2. Elements of the basic education program.

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     (a) The basic education program (BEP) shall include, but is not limited to, the following:

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     (1) A standard for students who are English language learners;

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     (2) The requirements set forth in §§ 16-22-17 and 16-22-24; and

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     (3) Any other requirements set forth in the Rhode Island general laws.

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     (b) By October 1, 2021, and by October 1 in all even-numbered years thereafter, the

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department shall review the BEP and identify areas to update, if appropriate. Updates to the BEP

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shall be proposed to the council by no later than November 1 of a review year, and the council shall

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vote on the adoption of the updates by December 1 of a review year.

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     (c) By October 1, 2021, and by October 1 in all even-numbered years thereafter, the

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department shall complete a fiscal analysis that identifies the expected costs associated with the

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requirements of the BEP. The department shall provide the fiscal analysis to the council by no later

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than November 1 of a review year.

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     SECTION 3. Section 45-13-14 of the General Laws in Chapter 45-13 entitled "State Aid"

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is hereby amended to read as follows:

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     45-13-14. Adjustments to tax levy, assessed value, and full value when computing state

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aid.

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     (a) Whenever the director of revenue computes the relative wealth of municipalities for the

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purpose of distributing state aid in accordance with title 16 and the provisions of § 45-13-12, he or

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she shall base it on the full value of all property except:

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     (1) That exempted from taxation by acts of the general assembly and reimbursed under §

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45-13-5.1 of the general laws, which shall have its value calculated as if the payment in lieu of tax

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revenues received pursuant to § 45-13-5.1, has resulted from a tax levy;

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     (2) That whose tax levy or assessed value is based on a tax treaty agreement authorized by

 

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a special public law or by reason of agreements between a municipality and the economic

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development corporation in accordance with § 42-64-20 prior to May 15, 2005, which shall not

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have its value included;

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     (3) That whose tax levy or assessed value is based on tax treaty agreements or tax

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stabilization agreements in force prior to May 15, 2005, which shall not have its value included;

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     (4) That which is subject to a payment in lieu of tax agreement in force prior to May 15,

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2005;

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     (5) Any other property exempt from taxation under state law; or

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     (6) Any property subject to chapter 27 of title 44, taxation of Farm, Forest, and Open Space

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Land.

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     (b) The tax levy of each municipality and fire district shall be adjusted for any real estate

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and personal property exempt from taxation by act of the general assembly by the amount of

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payment in lieu of property tax revenue anticipated to be received pursuant to § 45-13-5.1 relating

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to property tax from certain exempt private and state properties, and for any property subject to any

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payment in lieu of tax agreements, any tax treaty agreements or tax stabilization agreements in

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force after May 15, 2005, by the amount of the payment in lieu of taxes pursuant to such

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agreements.

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     (c) Fire district tax levies within a city or town shall be included as part of the total levy

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attributable to that city or town.

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     (d) The changes as required by subsections (a) through (c) of this section shall be

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incorporated into the computation of entitlements effective for distribution in fiscal year 2007-2008

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and thereafter.

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     SECTION 4. 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

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1

     This act would modify the amount of education aid determined for each school district with

2

respect to high-need students.

3

     This act would take effect upon passage.

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LC000829

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LC000829 - Page 12 of 12