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     ARTICLE 10

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RELATING TO EDUCATION

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     SECTION 1. Section 16-7-20 of the General Laws in Chapter 16-7 entitled “Foundation

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

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     16-7-20.  Determination of state's share.

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     (a) For each community the state's share shall be computed as follows: Let

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     R=state share ratio for the community.

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     v=adjusted equalized weighted assessed valuation for the community, as defined in § 16-

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7-21(3).

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

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     m=average daily membership of pupils in the community as defined in § 16-7-22(3).

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

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

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

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

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

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July 1, 2011 and thereafter. Except that in no case shall R be less than zero percent (0%).

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     (b) Whenever any funds are appropriated for educational purposes, the funds shall be used

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for educational purposes only and all state funds appropriated for educational purposes must be

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used to supplement any and all money allocated by a city or town for educational purposes and in

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no event shall state funds be used to supplant, directly or indirectly, any money allocated by a city

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or town for educational purposes. The courts of this state shall enforce this section by writ of

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mandamus.

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

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

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by the council on elementary and secondary education in accordance with currently existing rules

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and regulations for administering state aid, and subject to annual appropriations by the general

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assembly including, but not limited to, expenditures for educational personnel, supplies, and

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materials in the prior fiscal year.

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     (d) In the event the computation of the state's share for any local education agency as

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outlined in subsection (a) is determined to have been calculated incorrectly after the state budget

 

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for that fiscal year has been enacted, the commissioner of elementary and secondary education shall

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notify affected local education agencies, the senate president, and the speaker of the house within

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fifteen (15) days of the determination.

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     (e) Realignment of aid payments to the affected local education agencies pursuant to

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subsection (d) shall occur in the following fiscal year:

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     (1) If the determination shows aid is underpaid to the local education agency, any amounts

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owed shall be paid in equal monthly installments.

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     (2) If the determination shows aid was overpaid, the department of elementary and

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secondary education shall recapture some amount of the aid from the overpaid local education

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agency. The amount to be withheld shall be equal to the amount of the overpayment prorated to the

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number of full months remaining in the fiscal year when the notification required in subsection (d)

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was made.

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     (f) The above notwithstanding, in no event shall the total paid to a local education agency

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in the 2023 fiscal year pursuant subsection (a), above, be reduced as the result of the implementation

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of section (1), above.

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     SECTION 2. Section 45-38.2-4 of the General Laws in Chapter 38.2-4 entitled “School

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Building Authority Capital Fund” is hereby amended to read as follows:

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     45-38.2-4. Payment of state funds.

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     (a) Subject to the provisions of subsection (b), upon the written request of the corporation,

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the general treasurer shall pay to the corporation, from time to time, from the proceeds of any bonds

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or notes issued by the state for the purposes of this chapter or funds otherwise lawfully payable to

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the corporation for the purposes of this chapter, such amounts as shall have been appropriated or

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lawfully designated for the fund. All amounts so paid shall be credited to the fund in addition to

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any other amounts credited or expected to be credited to the fund.

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     (b) The corporation and the state may enter into, execute, and deliver one or more

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agreements setting forth or otherwise determining the terms, conditions, and procedures for, and

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the amount, time, and manner of payment of, all amounts available from the state to the corporation

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under this section.

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     (c) The corporation, per order of the school building authority capital fund, is authorized

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to grant a district or municipality its state share of an approved project cost, pursuant to §§ 16-7-39

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and 16-77.1-5. Construction pay-as-you-go grants received from the school building authority

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capital fund shall not be considered a form of indebtedness subject to the provisions of § 16-7-44.

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     (d) (1) Notwithstanding the provisions of §§ 45-12-19 and 45-12-20, and notwithstanding

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city or town charter provisions to the contrary, prior to July 1, 2016, no voter approval shall be

 

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required for loans in any amount made to a city or town for the local education agency's share of

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total project costs.

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     (2) Notwithstanding the provisions of §§ 45-12-19 and 45-12-20, and notwithstanding city

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or town charter provisions to the contrary, on or after July 1, 2016, up to five hundred thousand

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dollars ($500,000) may be loaned to a city or town for the local education agency's share of total

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project costs without the requirement of voter approval.

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     (e) (1) Funds from the two hundred fifty million ($250,000,000) in general obligation

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bonds, if approved on the November 2018 ballot, shall first be used to support the state share of

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foundational housing aid and shall be offered to local education agencies on a pay-as-you-go basis

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and not as a reimbursement of debt service for previously completed projects.

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     (2) Funds to support approved projects in a given year on a pay-as-you-go basis shall be

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offered proportionately to local education agencies based on the total state share of foundational

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housing aid awarded to projects in that year.

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     (3) Any excess funds up may be transferred to the school building authority capital fund in

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an amount not to exceed five percent (5%) of any amount of bonds issued in a given year.

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     (f) (1) Two hundred million ($200,000,000) in general obligation bonds, if approved on

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the November 2022 ballot, shall be used to support approved projects as defined by § 16-7-36(2)

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and shall be offered to local education agencies on a pay-as-you-go basis and not as a

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reimbursement of debt service for previously completed projects.

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     (2) Fifty million ($50,000,000) in general obligation bonds, if approved on the November

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2022 ballot, shall be transferred to the school building authority capital fund to help create facility

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equity between Rhode Island students.

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     (3) Any excess funds up may be transferred to the school building authority capital fund in

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an amount not to exceed five percent (5%) of any amount of bonds issued in a given year.

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     (f) (g) Notwithstanding any provision to the contrary, the term of any bond, capital lease,

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or other financing instrument shall not exceed the useful life of the project being financed.

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     (g) (h) In accordance with §§ 45-10-5.1 and 45-10-6, the auditor general shall give

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guidance to municipalities and school districts on the uniform financial reporting of construction

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debt authorized and issued, and on funding received from the state within ninety (90) days of the

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passage of this article.

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     SECTION 3. This Article shall take effect upon passage.

 

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