Rhode Island HB 5449: AN ACT RELATING TO EDUCATION - FOUNDATION LEVEL SCHOOL SUPPORT (Allows a city or town to transfer responsibility and expenditures for school building maintenance to the municipal side of the local government.)

Bill Text

2019 -- H 5449
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LC001377
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2019
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A N A C T
RELATING TO EDUCATION - FOUNDATION LEVEL SCHOOL SUPPORT
Introduced By: Representatives Jacquard, and Fogarty
Date Introduced: February 14, 2019
Referred To: House Municipal Government

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 1
Level School Support [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is 2
hereby amended to read as follows: 3
16-7-23. Community requirements -- Adequate minimum budget provision. 4
(a) The school committee's budget provisions of each community for current 5
expenditures in each budget year shall provide for an amount from all sources sufficient to 6
support the basic program and all other approved programs shared by the state. Each community 7
shall contribute local funds to its school committee in an amount not less than its local 8
contribution for schools in the previous fiscal year except to the extent permitted by §§ 16-7-23.1 9
and 16-7-23.2. Provided, that for the fiscal years 2010 and 2011 each community shall contribute 10
to its school committee in an amount not less than ninety-five percent (95.0%) of its local 11
contribution for schools for the fiscal year 2009. Calculation of the annual local contribution shall 12
not include Medicaid revenues received by the municipality or district pursuant to chapter 8 of 13
title 40. A community that has a decrease in enrollment may compute maintenance of effort on a 14
per-pupil rather than on an aggregate basis when determining its local contribution; furthermore, 15
a community that experiences a nonrecurring expenditure for its schools may deduct the 16
nonrecurring expenditure in computing its maintenance of effort. The deduction of nonrecurring 17
expenditures shall be with the approval of the commissioner. Provided, however, that 18
notwithstanding any provision of this title to the contrary, debt service that is no longer carried on 19

LC001377 - Page 2 of 4
the books of any school district shall not be included in any school district's annual budget, nor 1
shall nonrecurring debt service be included in maintenance of effort as set forth in this chapter, 2
nor shall any nonrecurring debt service be included in the operating budget of any school district. 3
For the purposes set forth above, nonrecurring capital lease payments shall be considered 4
nonrecurring debt service. The courts of this state shall enforce this section by means of 5
injunctive relief. 6
(b) Districts' annual maintenance expenditures must meet the requirements of subsection 7
(b)(1), (b)(2), or (b)(3) of this section. 8
(1) A minimum of three percent (3%) of the operating budget shall be dedicated 9
exclusively for maintenance expenditures as defined in § 16-7-36(7) provided that for FY 2019, 10
that amount shall be one percent (1%), for FY 2020, that amount shall be one and one-half 11
percent (1.5%), for FY 2021 that amount shall be two percent (2%), and for FY 2022 that amount 12
shall be two and one-half percent (2.5%). 13
(2) A minimum of three percent (3%) of the replacement value shall be dedicated 14
exclusively for maintenance expenditures as defined in § 16-7-36(7) provided that for FY 2019, 15
that amount shall be one percent (1%), for FY 2020 that amount shall be one and one-half percent 16
(1.5%), for FY 2021 that amount shall be two percent (2%), and for FY 2022 that amount shall be 17
two and one-half percent (2.5%). 18
(3) A minimum of three dollars ($3.00), subject to inflation, per square foot of building 19
space shall be dedicated exclusively for maintenance expenditures as defined in § 16-7-36(7). 20
(4) A city or town has the option to transfer responsibility and expenditures for school 21
building maintenance to the municipal side of the local government; provided, that this shall not 22
reduce any obligations imposed by this section or for maintenance of effort. 23
(c) The department of elementary and secondary education shall be responsible for 24
establishing a reporting mechanism to ensure the intent of this section is being met. In the event 25
that a district does not meet its minimum expenditure requirement in a given year, the state shall 26
direct state housing aid paid pursuant to § 16-7-41 or § 16-105-5, in an amount equal to the 27
shortfall, to a restricted fund created by the district and dedicated solely to meeting maintenance 28
requirements. 29
(d) Whenever any state funds are appropriated for educational purposes, the funds shall 30
be used for educational purposes only and all state funds appropriated for educational purposes 31
must be used to supplement any and all money allocated by a city or town for educational 32
purposes and, in no event, shall state funds be used to supplant, directly or indirectly, any money 33
allocated by a city or town for