2024 -- S 2581

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LC005332

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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 TOWNS AND CITIES -- STATE AID

     Introduced By: Senator Linda L. Ujifusa

     Date Introduced: March 01, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-13-1 of the General Laws in Chapter 45-13 entitled "State Aid" is

hereby amended to read as follows:

     45-13-1. Apportionment of annual appropriation for state aid.

     (a) As used in this chapter, the following words and terms have the following meanings:

     (1) “Income” means the most recent estimate of per-capita income for a city, town or

county as reported by the United States Department of Commerce, Bureau of the Census.

     (2) “Population” means the most recent estimates of population for each city and town as

reported by the United States Department of Commerce, Bureau of the Census.

     (3) “Reference year” means the second fiscal year preceding the beginning of the fiscal

year in which the distribution of state aid to cities and towns is made provided however that the

reference year for distributions made in fiscal year 2007-2008 shall be the third fiscal year

preceding the beginning of the fiscal year 2007-2008 and provided further that the reference year

for distributions made in fiscal year 2008-2009 shall be the fourth fiscal year preceding the

beginning of the fiscal year 2008-2009.

     (4) “Tax effort” means the total taxes imposed by a city or town for public purposes or the

totals of those taxes for the cities or towns within a county (except employee and employer

assessments and contributions to finance retirement and social insurance systems and other special

assessments for capital outlay) determined by the United States Secretary of Commerce for general

statistical purposes and adjusted to exclude amounts properly allocated to education expenses.

     (b) Aid to cities and towns shall be apportioned as follows: For each county, city or town,

let R be the tax effort divided by the square of per capita income, i.e., R = (tax effort)/(income x

income).

     The amount to be allocated to the counties shall be apportioned in the ratio of the value of

R for each county divided by the sum of the values of R for all five (5) counties.

     The amount to be allocated for all cities and for all towns within a county shall be the

allocation for that county apportioned proportionally to the total tax effort of the towns and cities

in that county.

     The amount to be allocated to any city or town is the amount allocated to all cities or all

towns within the county apportioned in the ratio of the value of R for that city (or town) divided by

the sum of the values of R for all cities (or all towns) in that county; provided, further, that no city

or town shall receive an entitlement in excess of one hundred forty-five percent (145%) of that city

or town’s population multiplied by the average per capita statewide amount of the annual

appropriation for state aid to cities and towns. Any excess entitlement shall be allocated to the

remainder of the cities and towns in the respective county in accordance with the provisions of this

section.

     For fiscal year 2004, notwithstanding the provisions of subsection (a), aid calculations shall

be based on a blended rate of ninety percent (90%) of the data from the 1990 census and ten percent

(10%) of the data from the 2000 census. In each of the succeeding nine (9) fiscal years, the

calculations shall be based on a blended rate that increases the percentage of data utilized from the

2000 census by ten percent (10%) from the previous year and decreases the percentage of the data

utilized from the 1990 census by ten percent (10%) from the previous year.

     (c) The total amount of aid to be apportioned pursuant to subsection (b) above shall be

specified in the annual appropriation act of the state and shall be equal to the following:

     (1) For fiscal years ending June 30, 1994 through June 30, 1998, the total amount of aid

shall be based upon one percent (1%) of total state tax revenues in the reference year.

     (2) For the fiscal year ending June 30, 1999, the total amount of aid shall be based upon

one and three-tenths percent (1.3%) of total state tax revenues in the reference year.

     (3) For the fiscal year ending June 30, 2000, the total amount of aid shall be based upon

one and seven-tenths percent (1.7%) of total state tax revenues in the reference year.

     (4) For the fiscal year ending June 30, 2001, the total amount of aid shall be based upon

two percent (2.0%) of total state tax revenues in the reference year.

     (5) For the fiscal year ending June 30, 2002, the total amount of aid shall be based upon

two and four-tenths percent (2.4%) of total state tax revenues in the reference year.

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     (6) For the fiscal year ending June 30, 2003, the total amount of aid shall be based upon

two and four-tenths percent (2.4%) of total state tax revenues in the reference year.

     (7) For the fiscal year ending June 30, 2004, the total amount of aid shall be based upon

two and seven-tenths percent (2.7%) of total state tax revenues in the reference year.

     (8) For the fiscal year ending June 30, 2005, the total amount of aid shall be fifty-two

million four hundred thirty-eight thousand five hundred thirty-two dollars ($52,438,532).

     (9) For the fiscal year ending June 30, 2006, the total amount of aid shall be based upon

three percent (3%) of total state tax revenues in the reference year.

     (10) For the fiscal year ending June 30, 2007 the total amount of aid shall be sixty-four

million six hundred ninety-nine thousand three dollars ($64,699,003).

     (11) For the fiscal year ending June 30, 2008, the total amount of aid shall be sixty-four

million six hundred ninety-nine thousand three dollars ($64,699,003).

     (12) [Deleted by P.L. 2009, ch. 68, art. 6, section 3.]

     (13) [Deleted by P.L. 2007, ch. 73, art. 25, section 1.]

     (14) [Deleted by P.L. 2007, ch. 73, art. 25, section 1.]

     (d) For the fiscal year ending June 30, 2008 the apportionments of state aid as derived

through the calculations as required by subsections (a) through (c) of this section shall be adjusted

downward statewide by ten million dollars ($10,000,000).

     (e) For the fiscal year ending June 30, 2009, the total amount of aid shall be twenty-five

million dollars ($25,000,000) with such distribution allocated proportionately on the same basis as

the original enactment of general revenue sharing of FY 2009.

     (f) For the fiscal year ending June 30, 2009 and thereafter, funding shall be determined by

appropriation.

     (g) For the fiscal year ending June 30, 2025, the total amount of aid shall be thirty-nine

million dollars ($39,000,000) to be allocated and distributed based on population as determined by

the 2020 census.

     (h) For the fiscal year ending June 30, 2026 and thereafter, aid shall be increased by the

total percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U).

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- STATE AID

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     This act would reinstate general revenue sharing of state aid among the thirty-nine cities

and towns in Rhode Island. The initial amount would be based upon population, and would be

increased annually thereafter based on the increase in the Consumer Price Index for all Urban

Consumers.

     This act would take effect upon passage.

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