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LC004904

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

     

     Introduced By: Senators Bissaillon, Pearson, and Gallo

     Date Introduced: February 12, 2024

     Referred To: Senate Education

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-7.2-5 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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     16-7.2-5. 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 that 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) In any fiscal year, no school district's total charter school expenses, defined as the sum

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of tuitions 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 a school or school district is under

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state control pursuant to § 16-7.1-5, the school district's total charter school expense may exceed

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nine percent (9%) of the district's adopted budget; provided that, it shall not exceed twenty-three

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percent (23%). If in FY 2024 and any subsequent fiscal year, any district's total charter school

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expenses would exceed the nine percent (9%) or twenty-three percent (23%) caps prescribed in this

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subsection, no enrollments shall be allowed from that district to charter schools in excess of the

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total charter school percent caps in this subsection or the district’s prior fiscal year percentage,

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whichever is greater.

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

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Met 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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     (f) [Deleted by P.L. 2023, ch. 79, art. 8, § 2.]

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     SECTION 2. This act shall take effect on July 1, 2024.

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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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     This act would provide limitations and prescribe caps on a district's total charter school

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expenses. The act would provide that a school district's budget for charter schools is not to exceed

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nine percent (9%) of the school district's budget unless the school district is under state control and

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then the school district's budget for charter schools would not exceed twenty-three percent (23%).

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     This act would take effect on July 1, 2024.

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