LCO No. 3964 1 of 8 General Assembly Raised Bill No. 946 January Session, 2021 LCO No. 3964 Referred to Committee on EDUCATION Introduced by: (ED) AN ACT CONCERNING TH E MINIMUM BUDGET REQ UIREMENT. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 10-262j of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2021): 2 (a) Except as otherwise provided under the provisions of subsections 3 (c) to (h), inclusive, of this section, for [the] any fiscal year, [ending June 4 30, 2020,] the budgeted appropriation for education shall be not less 5 than the budgeted appropriation for education for the prior fiscal year, 6 [ending June 30, 2019,] plus any aid increase described in subsection (d) 7 of section 10-262i, as amended by this act, except that a town may reduce 8 its budgeted appropriation for education for the fiscal year, [ending 9 June 30, 2020,] by one or more of the following: 10 (1) If a town experiences an aid reduction, as described in subsection 11 (d) of section 10-262i, as amended by this act, such town may reduce its 12 budgeted appropriation for education in an amount equal to the aid 13 reduction; 14 (2) If a district experiences a net reduction in its resident student 15 Raised Bill No. 946 LCO No. 3964 2 of 8 count during a period that may include any of the five fiscal years 16 immediately prior to the fiscal year for which the budgeted 17 appropriation for education is calculated, such district may reduce its 18 budgeted appropriation for education in an amount equal to the 19 number of such net reduction multiplied by fifty per cent of the net 20 current expenditures per resident student of such district, provided no 21 district may use the resident student count for any fiscal year that was 22 previously used to reduce its budgeted appropriation for education in 23 any calculation of a net reduction of resident students for purposes of 24 reducing its budgeted appropriation for education pursuant to this 25 subdivision for any subsequent fiscal year; 26 (3) Any district (A) that does not maintain a high school and pays 27 tuition to another school district pursuant to section 10-33 for resident 28 students to attend high school in another district, and (B) in which the 29 number of resident students attending high school for such district for 30 October [1, 2018] first of the prior school year, using the data of record 31 as of January [31, 2019] thirty-first of the prior school year, is lower than 32 such district's number of resident students attending high school for 33 October [1, 2017] first of the school year before the prior school year, 34 using the data of record as of January [31, 2019] thirty-first of the school 35 year before the prior school year, may reduce such district's budgeted 36 appropriation for education by the difference in the number of resident 37 students attending high school for such years multiplied by the amount 38 of tuition paid per student pursuant to section 10-33; or 39 (4) Any district that realizes new and documentable savings through 40 (A) increased district efficiencies approved by the Commissioner of 41 Education, including, but not limited to, (i) reductions in costs 42 associated with transportation services, school district administration or 43 contracts that are not the result of collective bargaining or other labor 44 agreements, (ii) an agreement to provide medical or health care benefits 45 pursuant to section 7-464b, (iii) a cooperative agreement relating to the 46 performance of administrative and central office functions, such as 47 business manager functions, for the municipality and the school district 48 pursuant to section 10-241b, (iv) reductions in costs associated with the 49 Raised Bill No. 946 LCO No. 3964 3 of 8 purchasing or joint purchasing of property insurance, casualty 50 insurance and workers' compensation insurance, following the 51 consultation with the legislative body of the municipality of such district 52 pursuant to section 10-241c, (v) reductions in costs associated with the 53 purchasing of payroll processing or accounts payable software systems, 54 following the consultation with the legislative body of the municipality 55 of such district to determine whether such systems may be purchased 56 or shared on a regional basis pursuant to section 10-241e, (vi) 57 consolidation of information technology services, and (vii) reductions in 58 costs associated with the care and maintenance of athletic fields, or (B) 59 regional collaboration or cooperative arrangements pursuant to section 60 10-158a may reduce such district's budgeted appropriation for 61 education in an amount equal to half of the amount of savings 62 experienced as a result of such district efficiencies, regional 63 collaboration or cooperative arrangement, provided such reduction 64 shall not exceed one-half of one per cent of the district's budgeted 65 appropriation for education for the prior fiscal year. [ending June 30, 66 2019.] 67 [(b) Except as otherwise provided under the provisions of subsections 68 (c) to (h), inclusive, of this section, for the fiscal year ending June 30, 69 2021, a town's budgeted appropriation for education shall be not less 70 than the budgeted appropriation for education for the fiscal year ending 71 June 30, 2020, plus any aid increase received pursuant to subsection (d) 72 of section 10-262i, except that a town may reduce its budgeted 73 appropriation for education for the fiscal year ending June 30, 2021, by 74 one or more of the following: 75 (1) If a town experiences an aid reduction, as described in subsection 76 (d) of section 10-262i, such town may reduce its budgeted appropriation 77 for education in an amount equal to the aid reduction; 78 (2) If a district experiences a net reduction in its resident student 79 count during a period that may include any of the five fiscal years 80 immediately prior to the fiscal year for which the budgeted 81 appropriation for education is calculated, such district may reduce its 82 Raised Bill No. 946 LCO No. 3964 4 of 8 budgeted appropriation for education in an amount equal to the 83 number of such net reduction multiplied by fifty per cent of the net 84 current expenditures per resident student of such district, provided no 85 district may use the resident student count for any fiscal year that was 86 previously used to reduce its budgeted appropriation for education in 87 any calculation of a net reduction of resident students for purposes of 88 reducing its budgeted appropriation for education pursuant to this 89 subdivision for any subsequent fiscal year; 90 (3) Any district (A) that does not maintain a high school and pays 91 tuition to another school district pursuant to section 10-33 for resident 92 students to attend high school in another district, and (B) in which the 93 number of resident students attending high school for such district for 94 October 1, 2019, using the data of record as of January 31, 2020, is lower 95 than such district's number of resident students attending high school 96 for October 1, 2018, using the data of record as of January 31, 2020, may 97 reduce such district's budgeted appropriation for education by the 98 difference in the number of resident students attending high school for 99 such years multiplied by the amount of tuition paid per student 100 pursuant to section 10-33; or 101 (4) Any district that realizes new and documentable savings through 102 (A) increased district efficiencies approved by the Commissioner of 103 Education, including, but not limited to, (i) reductions in costs 104 associated with transportation services, school district administration or 105 contracts that are not the result of collective bargaining or other labor 106 agreements, (ii) an agreement to provide medical or health care benefits 107 pursuant to section 7-464b, (iii) a cooperative agreement relating to the 108 performance of administrative and central office functions, such as 109 business manager functions, for the municipality and the school district 110 pursuant to section 10-241b, (iv) reductions in costs associated with the 111 purchasing or joint purchasing of property insurance, casualty 112 insurance and workers' compensation insurance, following the 113 consultation with the legislative body of the municipality of such district 114 pursuant to section 10-241c, (v) reductions in costs associated with the 115 purchasing of payroll processing or accounts payable software systems, 116 Raised Bill No. 946 LCO No. 3964 5 of 8 following the consultation with the legislative body of the municipality 117 of such district to determine whether such systems may be purchased 118 or shared on a regional basis pursuant to section 10-241e, (vi) 119 consolidation of information technology services, and (vii) reductions in 120 costs associated with the care and maintenance of athletic fields, or (B) 121 regional collaboration or cooperative arrangements pursuant to section 122 10-158a, may reduce such district's budgeted appropriation for 123 education in an amount equal to half of the amount of savings 124 experienced as a result of such district efficiencies, regional 125 collaboration or cooperative arrangement, provided such reduction 126 shall not exceed one-half of one per cent of the district's budgeted 127 appropriation for education for the fiscal year ending June 30, 2020.] 128 [(c) For the fiscal years ending June 30, 2020, and June 30, 2021,] (b) 129 For any fiscal year, the Commissioner of Education may permit a town 130 to reduce its budgeted appropriation for education in an amount 131 determined by the commissioner if the school district in such town has 132 permanently ceased operations and closed one or more schools in the 133 school district due to declining enrollment at such closed school or 134 schools in the [fiscal years ending June 30, 2013, to June 30, 2020, 135 inclusive] seven fiscal years immediately prior to the fiscal year for 136 which the budgeted appropriation for education is calculated. 137 [(d)] (c) Except as otherwise provided under the provisions of 138 [subsection (h)] subsections (g) and (h) of this section, [for the fiscal 139 years ending June 30, 2020, and June 30, 2021,] a town designated as an 140 alliance district, as defined in section 10-262u, shall not reduce its 141 budgeted appropriation for education pursuant to this section. 142 [(e) For the fiscal years ending June 30, 2020, and June 30, 2021, the] 143 (d) The provisions of this section shall not apply to any district that is in 144 the top ten per cent of school districts based on the accountability index, 145 as defined in section 10-223e. 146 [(f) For the fiscal years ending June 30, 2020, and June 30, 2021, the] 147 (e) The provisions of this section shall not apply to the member towns 148 Raised Bill No. 946 LCO No. 3964 6 of 8 of a regional school district during the first full fiscal year following the 149 establishment of the regional school district, provided the budgeted 150 appropriation for education for member towns of such regional school 151 district for each subsequent fiscal year shall be determined in 152 accordance with this section. 153 [(g) For the fiscal years ending June 30, 2020, and June 30, 2021, any] 154 (f) Any district that has (1) elected to act as a self-insurer, pursuant to 155 section 10-236, (2) experienced a loss incurred as a result of one or more 156 catastrophic events, as declared by a nationally recognized catastrophe 157 loss index provider, during the prior fiscal year, and (3) increased its 158 budgeted appropriation for education during said prior fiscal year as a 159 result of such loss, shall not be required to include the amount of such 160 increase in the calculation of such district's budgeted appropriation for 161 education for the subsequent fiscal year. 162 [(h)] (g) For the fiscal years ending June 30, 2020, [and June 30, 2021] 163 to June 30, 2023, inclusive, any district that has received (1) a 164 supplemental appropriation from the board of finance for a town having 165 a board of finance, the board of selectmen for a town having no board 166 of finance or the authority making appropriations for the school district, 167 for the purpose of covering costs associated with COVID -19 168 expenditures because the budgeted appropriation for education for the 169 district was insufficient to cover such costs, or (2) federal funds for the 170 purpose of covering costs associated with COVID-19 expenditures, 171 including, but not limited to, funds received pursuant to the 172 Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136, as 173 amended from time to time, and the Coronavirus Response and Relief 174 Supplemental Appropriations Act, P.L. 116-260, as amended from time 175 to time, shall not be required to include the amount of such 176 supplemental appropriation or federal funds in the calculation of such 177 district's budgeted appropriation for education for the subsequent fiscal 178 year. As used in this subsection, "COVID-19" means the respiratory 179 disease designated by the World Health Organization on February 11, 180 2020, as coronavirus 2019, and any related mutation thereof recognized 181 by the World Health Organization as a communicable respiratory 182 Raised Bill No. 946 LCO No. 3964 7 of 8 disease. 183 (h) For the fiscal years ending June 30, 2022, and June 30, 2023, any 184 district that has been awarded a grant under the school security 185 infrastructure competitive grant program, established pursuant to 186 section 84 of public act 13-3, during the prior fiscal year, shall not be 187 required to include the amount of such grant in the calculation of such 188 district's budgeted appropriation for education for the subsequent fiscal 189 year. 190 Sec. 2. Subsection (d) of section 10-262i of the general statutes is 191 repealed and the following is substituted in lieu thereof (Effective July 1, 192 2021): 193 [(d) (1) For the fiscal year ending June 30, 2020, (A) if the amount of 194 the equalization aid grant a town is entitled to pursuant to section 10-195 262h is greater than such town's equalization aid grant amount for the 196 prior fiscal year, the difference between the amount of such town's 197 equalization aid grant for the fiscal year ending June 30, 2020, and such 198 town's equalization aid grant amount for the prior fiscal year shall be 199 the aid increase for such town for the fiscal year ending June 30, 2020, 200 and (B) if the amount of the equalization aid grant a town is entitled to 201 pursuant to section 10-262h is less than such town's equalization aid 202 grant amount for the prior fiscal year, the difference between such 203 town's equalization aid grant amount for the prior fiscal year and the 204 amount of such town's equalization aid grant for the fiscal year ending 205 June 30, 2020, shall be the aid reduction for such town for the fiscal year 206 ending June 30, 2020. 207 (2) For the fiscal year ending June 30, 2021, (A) if the amount of the 208 equalization aid grant a town is entitled to pursuant to section 10-262h 209 is greater than such town's equalization aid grant amount for the prior 210 fiscal year, the difference between the amount of such town's 211 equalization aid grant for the fiscal year ending June 30, 2021, and such 212 town's equalization aid grant amount for the prior fiscal year shall be 213 the aid increase for such town for the fiscal year ending June 30, 2021, 214 Raised Bill No. 946 LCO No. 3964 8 of 8 and (B) if the amount of the equalization aid grant a town is entitled to 215 pursuant to section 10-262h is less than such town's equalization aid 216 grant amount for the prior fiscal year, the difference between such 217 town's equalization aid grant amount for the prior fiscal year and the 218 amount of such town's equalization aid grant for the fiscal year ending 219 June 30, 2021, shall be the aid reduction for such town for the fiscal year 220 ending June 30, 2021.] (d) For any fiscal year, (1) if the amount of the 221 equalization aid grant a town is entitled to pursuant to section 10-262h 222 is greater than such town's equalization aid grant amount for the prior 223 fiscal year, the difference between the amount of such town's 224 equalization aid grant for the fiscal year, and such town's equalization 225 aid grant amount for the prior fiscal year shall be the aid increase for 226 such town for the fiscal year, and (2) if the amount of the equalization 227 aid grant a town is entitled to pursuant to section 10-262h is less than 228 such town's equalization aid grant amount for the prior fiscal year, the 229 difference between such town's equalization aid grant amount for the 230 prior fiscal year and the amount of such town's equalization aid grant 231 for the fiscal year shall be the aid reduction for such town for the fiscal 232 year. 233 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2021 10-262j Sec. 2 July 1, 2021 10-262i(d) Statement of Purpose: To extend the provisions of and make revisions to the minimum budget requirement for school districts by excluding from the calculation of a school district's budgeted appropriation for education any funds received or used for COVID-19 related expenses and funds received for school security improvements. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]