2014 – S 2862 SUBSTITUTE A
Enacted 07/08/14
A N A C T
RELATING TO EDUCATION - SCHOOL COMMITTEES AND SUPERINTENDENTS
Introduced By: Senators Pearson, Paiva Weed, Gallo, DiPalma, and Satchell
Date Introduced: April 09, 2014
It is enacted by the General Assembly as follows:
SECTION 1. Sections 16-2-9.4 and 16-2-21 of the General Laws in Chapter 16-2 entitled "School Committees and Superintendents [ See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" 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, that shall include a distinct line item for payments to charter schools and use best practices established by the department of education for long range planning, budget development, and budget administration and reporting.
(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 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, in writing, specifying the nature and extent of the failure, refusal, neglect, hindrance, or prevention, and the commissioner is hereby authorized and directed to review the matter so reported. If the 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 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 commissioner may request the board of education for approval to withhold distribution of state aid to said school district, regional school district, state school, or charter school. The board shall hold a hearing and provide the subject school and/or district notice and an opportunity to be heard at said hearing. After hearing thereon, the board may authorize the commissioner to withhold the distribution of state aid to said school district, regional school district, state school, or charter school, if the board determines such sanction is appropriate.
(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.
16-2-21. Pre-budget consultation -- Annual reports -- Appropriation requests -- Budgets. -- (a) At least sixty (60) days, but not more than ninety (90) days, prior to the formal submission of the school budget to the appropriate city or town officials by the school committee, there shall be a joint, pre-budget meeting between the school committee and the city or town council(s). At or before this meeting:
(1) The highest elected official of the city or town shall submit to the school committee an estimate, prepared in a manner approved by the department of administration, of projected revenues for the next fiscal year. In the case of the property tax, the projections shall include only changes in the property tax base, not property tax rates;
(2) The school committee shall submit to the city or town council a statement for the next ensuing fiscal year of anticipated total expenditures, projected enrollments with resultant staff and facility requirements, estimated enrollment and payments to charter schools, and any necessary or mandated changes in school programs or operations; and
(3) The school committee shall prepare
and submit, annually, to the department of elementary and secondary education,
on or before the first day of August, a report in the manner and form
prescribed by the state board of regents for elementary and secondary education;
the committee shall also prepare, not
less than thirty (30) days before the date of the annual financial town
meeting, or the date of the meeting of the city council at which annual
appropriations are made, on forms prescribed and furnished by the department of
elementary and secondary education, the estimates and recommendations of the
amounts necessary to be appropriated for the support of public schools, including a distinct line item for estimated payments to
charter schools for the fiscal year ensuing; provided, that a copy
of these estimates and recommendations shall be sent to the department of
elementary and secondary education, and until the report is made, and if the
estimates and recommendations are not presented to the department, it may
refuse to draw its orders for the money in the state treasury apportioned to
the city or town; provided, that the necessary blank for the report has been
furnished by the department on or before the first day of June, next preceding,
and the necessary forms for the estimates and recommendations shall have been
furnished by the department not less than sixty (60) days before the date of
the annual appropriations meeting of the city council; tThe
committee shall also prepare and submit annually to the department of elementary
and secondary education and at the annual financial town meeting, a report to the city or town, setting forth its
doings, the state, and condition of the
schools, and plans for their improvement, which report, unless printed, shall
be read in open meeting; and if printed, at least three (3) copies shall be
transmitted to the department on or before the day of the annual financial town
meeting in each year.
(b) If the amount appropriated by the town meeting, the city or town council, or budget referendum is either more or less than the amount recommended and requested by the school committee, the school committee shall, within thirty (30) days after the appropriation is made, amend its estimates and recommendations so that expenses are no greater than the total of all revenue appropriated by the state or town or provided for public schools under the care, control, and management of the school committee.
(c) Only a school budget in which total expenses are less than, or equal to, appropriations and revenues shall be considered an adopted school budget.
(d) Notwithstanding any provision of the general or public laws to the contrary:
(i) tThe budget adopted and presented by any school
committee for the fiscal year 2008 shall not propose the appropriation of
municipal funds (exclusive of state and federal aid) in excess of one hundred
five and one-quarter percent (105.25%) of the total of municipal funds
appropriated by the city or town council for school purposes for fiscal year
2007;
(ii) tThe budget adopted and presented by any school
committee for the fiscal year 2009 shall not propose the appropriation of
municipal funds (exclusive of state and federal aid) in excess of one hundred
five percent (105%) of the total of municipal funds appropriated by the city or
town council for school purposes for fiscal year 2008;
(iii) tThe budget adopted and presented by any school
committee for the fiscal year 2010 shall not propose the appropriation of
municipal funds (exclusive of state and federal aid) in excess of one hundred
four and three-quarters percent (104.75%) of the total of municipal funds
appropriated by the city or town council for school purposes for fiscal year
2009;
(iv) tThe budget adopted and presented by any school
committee for the fiscal year 2011 shall not propose the appropriation of
municipal funds (exclusive of state and federal aid) in excess of one hundred
four and one-half percent (104.5%) of the total of municipal funds appropriated
by the city or town council for school purposes for fiscal year 2010;
(v) tThe budget adopted and presented by any school
committee for the fiscal year 2012 shall not propose the appropriation of
municipal funds (exclusive of state and federal aid) in excess of one hundred
four and one-quarter percent (104.25%) of the total of municipal funds
appropriated by the city or town council for school purposes for fiscal year
2011; and
(vi) tThe budget adopted and presented by any school
committee for the fiscal year 2013 and for each fiscal year thereafter shall
not propose the appropriation of municipal funds (exclusive of state and
federal aid) in excess of one hundred four percent (104%) of the total of
municipal funds appropriated by the city or town council for school purposes
for the previous fiscal year.
(e) Notwithstanding any provision of
the general or public laws to the contrary, any judgment rendered pursuant to subsection §16-2-21.4(b)
shall consider the percentage caps on school district budgets set forth in
subsection (d) of this section.
SECTION 2. Section 16-7.2-5 of the General Laws in Chapter 16-7.2 entitled "The Education Equity and Property Tax Relief Act" is hereby amended to read as follows:
16-7.2-5. Charter public schools, the William M. Davies, Jr.
Career and Technical High School, and the Metropolitan Regional Career and
Technical Center. -- (a) Charter public schools defined in
chapter 16-77 of
this title, the William M. Davies, Jr. Career and Technical High
School (Davies) and the Metropolitan Regional Career and Technical Center (the
Met Center) shall be funded pursuant to section
§16-7.2-3. If the October 1 actual
enrollment data for any charter public school shows a ten percent (10%) or
greater change from the prior year enrollment which is used as the reference
year average daily membership, the third and fourth quarter payments to the
charter public school will be adjusted to reflect actual enrollment. The state
share of the permanent foundation education aid shall be paid by the state
directly to the charter public schools, Davies, and the Met Center pursuant to section §16-7.2-9
and shall be calculated using the state share ratio of the district of
residence of the student as set forth in section
§16-7.2-4. The
department of elementary and secondary education shall provide the general
assembly with the calculation of the state share of permanent foundation
education aid for charter public schools delineated by school district. The
department shall also provide the general assembly a performance dashboard
indicating the per-pupil expenditures of each school district and charter
school broken down by revenue sources and expenditure categories. The
department shall provide, within the same dashboard, student performance
indicators for each school district or charter school. The local
share of education funding, as defined by the department of elementary and
secondary education and approved by the General Assembly, shall be paid to the
charter public school, Davies, and the Met Center by the district of residence
of the student and shall be the local per pupil cost calculated by dividing the
local appropriation to education from property taxes,
net of debt service and capital projects,
as defined in the uniform chart of accounts by the average daily membership for
each city and town, pursuant to section §16-7-22, for the reference year.
(b) Local district payments to charter
public schools, Davies, and the Met Center for each district's students
enrolled in these schools shall be made on a quarterly basis in July, October,
January and April; however, the first local district payment shall be made by
August 15 instead of July. Failure of the community to make the local district
payment for its student(s) enrolled in a charter public school, Davies, and/or
the Met Center may result in the withholding of state education aid pursuant to
section §16-7-31.
SECTION 3. This act shall take effect upon passage.
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LC005267/SUB A
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