2021 -- S 0871

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LC002807

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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 -- SCHOOL FUNDING

     Introduced By: Senator Maryellen Goodwin

     Date Introduced: May 04, 2021

     Referred To: Senate Finance

     (City of Providence)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-7-23 of the General Laws in Chapter 16-7 entitled "Foundation

Level School Support [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is

hereby amended to read as follows:

     16-7-23. Community requirements -- Adequate minimum budget provision.

     (a) The school committee's budget provisions of each community for current expenditures

in each budget year shall provide for an amount from all sources sufficient to support the basic

program and all other approved programs shared by the state. Each community shall contribute

local funds to its school committee in an amount not less than its local contribution for schools in

the previous fiscal year except to the extent permitted by §§ 16-7-23.1 and 16-7-23.2. Provided,

that for the fiscal years 2010 and 2011 each community shall contribute to its school committee in

an amount not less than ninety-five percent (95.0%) of its local contribution for schools for the

fiscal year 2009; and provided further, that for fiscal years 2021, 2022 and 2023, each community

shall contribute to its school committee in an amount not less than ninety-five percent (95%) of its

local contribution for schools for the fiscal year 2019. Calculation of the annual local contribution

shall not include Medicaid revenues received by the municipality or district pursuant to chapter 8

of title 40 and shall not include any funds received by the district from the Elementary and

Secondary School Emergency Relief Fund in connection with relief for the COVID-19 pandemic.

A community that has a decrease in enrollment may compute maintenance of effort on a per-pupil

rather than on an aggregate basis when determining its local contribution; furthermore, a

community that experiences a nonrecurring expenditure for its schools may deduct the nonrecurring

expenditure in computing its maintenance of effort. The deduction of nonrecurring expenditures

shall be with the approval of the commissioner; provided, however, that any expense incurred as a

result of the COVID-19 pandemic shall be deemed a nonrecurring expenditure under this section.

Provided, however, that notwithstanding any provision of this title to the contrary, debt service that

is no longer carried on the books of any school district shall not be included in any school district's

annual budget, nor shall nonrecurring debt service be included in maintenance of effort as set forth

in this chapter, nor shall any nonrecurring debt service be included in the operating budget of any

school district. For the purposes set forth above, nonrecurring capital lease payments shall be

considered nonrecurring debt service. The courts of this state shall enforce this section by means

of injunctive relief.

     (b) Districts' annual maintenance expenditures must meet the requirements of subsection

(b)(1), (b)(2), or (b)(3) of this section.

     (1) A minimum of three percent (3%) of the operating budget shall be dedicated exclusively

for maintenance expenditures as defined in § 16-7-36(7) provided that for FY 2019, that amount

shall be one percent (1%), for FY 2020, that amount shall be one and one-half percent (1.5%), for

FY 2021 that amount shall be two percent (2%), and for FY 2022 that amount shall be two and

one-half percent (2.5%).

     (2) A minimum of three percent (3%) of the replacement value shall be dedicated

exclusively for maintenance expenditures as defined in § 16-7-36(7) provided that for FY 2019,

that amount shall be one percent (1%), for FY 2020 that amount shall be one and one-half percent

(1.5%), for FY 2021 that amount shall be two percent (2%), and for FY 2022 that amount shall be

two and one-half percent (2.5%).

     (3) A minimum of three dollars ($3.00), subject to inflation, per square foot of building

space shall be dedicated exclusively for maintenance expenditures as defined in § 16-7-36(7).

     (c) The department of elementary and secondary education shall be responsible for

establishing a reporting mechanism to ensure the intent of this section is being met. In the event

that a district does not meet its minimum expenditure requirement in a given year, the state shall

direct state housing aid paid pursuant to § 16-7-41 or § 16-105-5, in an amount equal to the shortfall,

to a restricted fund created by the district and dedicated solely to meeting maintenance

requirements.

     (d) Whenever any state funds are appropriated for educational purposes, the funds shall be

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

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

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

city or town for educational purposes. All state funds shall be appropriated by the municipality to

the school committee for educational purposes in the same fiscal year in which they are

appropriated at the state level even if the municipality has already adopted a school budget. All

state and local funds unexpended by the end of the fiscal year of appropriation shall remain a

surplus of the school committee and shall not revert to the municipality. Any surplus of state or

local funds appropriated for educational purposes shall not in any respect affect the requirement

that each community contribute local funds in an amount not less than its local contribution for

schools in the previous fiscal year, subject to subsection (a) of this section, and shall not in any

event be deducted from the amount of the local appropriation required to meet the maintenance of

effort provision in any given year.

     SECTION 2. Section 16-7.1-5 of the General Laws in Chapter 16-7.1 entitled "The Paul

W. Crowley Rhode Island Student Investment Initiative [See Title 16 Chapter 97 - The Rhode

Island Board of Education Act]" is hereby amended to read as follows:

     16-7.1-5. Intervention and support for failing schools.

     (a) The board of regents shall adopt a series of progressive support and intervention

strategies consistent with the Comprehensive Education Strategy and the principles of the "School

Accountability for Learning and Teaching" (SALT) of the board of regents for those schools and

school districts that continue to fall short of performance goals outlined in the district strategic

plans. These strategies shall initially focus on: (1) technical assistance in improvement planning,

curriculum alignment, student assessment, instruction, and family and community involvement; (2)

policy support; (3) resource oversight to assess and recommend that each school has adequate

resources necessary to meet performance goal; and (4) creating supportive partnerships with

education institutions, business, governmental, or other appropriate nonprofit agencies. If after a

three (3) year period of support there has not been improvement in the education of students as

determined by objective criteria to be developed by the board of regents, then there shall be

progressive levels of control by the department of elementary and secondary education over the

school and/or district budget, program, and/or personnel. This control by the department of

elementary and secondary education may be exercised in collaboration with the school district and

the municipality. If further needed, the school shall be reconstituted. Reconstitution responsibility

is delegated to the board of regents and may range from restructuring the school's governance,

budget, program, personnel, and/or may include decisions regarding the continued operation of the

school. The board of regents shall assess the district's capacity and may recommend the provision

of additional district, municipal and/or state resources. If a school or school district is under the

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board of regents' control as a result of actions taken by the board pursuant to this section, the local

school committee shall be responsible for funding that school or school district at the same level as

in the prior academic year increased by the same percentage as the state total of school aid is

increased.

     (b) For FY 2007, the department shall dedicate one hundred thousand dollars ($100,000)

from funds appropriated to support progressive support and intervention and SALT visits to support

the Rhode Island Consortium for Instructional Leadership and Training. This consortium is

engaged in training school leaders to be more effective instructional leaders in the standards based

instruction environment.

     (c) For fiscal years 2021, 2022 and 2023, any school or school district under the Rhode

Island board of education's control as a result of actions taken pursuant to § 16-7.1-5 shall contribute

to its school committee in an amount not less than ninety-five percent (95%) of its local contribution

for schools for the fiscal year 2019. Calculation of the annual local contribution shall not include

Medicaid revenues received by the municipality or district pursuant to chapter 8 of title 40 and shall

not include any funds received by the district from the Elementary and Secondary School

Emergency Relief Fund in connection with relief for the COVID-19 pandemic. A community that

has a decrease in enrollment may compute maintenance of effort on a per-pupil rather than on an

aggregate basis when determining its local contribution; furthermore, a community that experiences

a nonrecurring expenditure for its schools may deduct the nonrecurring expenditure in computing

its maintenance of effort. The deduction of nonrecurring expenditures shall be with the approval of

the commissioner; provided, however, that any expense incurred as a result of the COVID-19

pandemic shall be deemed a nonrecurring expenditure under this section.

     SECTION 3. 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 -- SCHOOL FUNDING

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     This act would modify the foundation level of support required of municipalities, excluding

funds received by the school district from the Elementary and Secondary School Emergency Relief

Fund, in connection with relief due to the COVID-19 pandemic.

     This act would take effect upon passage.

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