2023 -- S 0454 ======== LC001814 ======== S TATE OF RHODE IS LAND IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2023 ____________ A N A C T RELATING TO EDUCATION -- FOUNDATION LEVEL SCHOOL SUPPORT Introduced By: Senators DiPalma, LaMountain, Britto, Ujifusa, Murray, Acosta, Felag, Zurier, Euer, and Pearson Date Introduced: March 03, 2023 Referred To: Senate Finance It is enacted by the General Assembly as follows: SECTION 1. Sections 16-7-39 and 16-7-40 of the General Laws in Chapter 16-7 entitled 1 "Foundation Level School Support [See Title 16 Chapter 97 — The Rhode Island Board of 2 Education Act]" are hereby amended to read as follows: 3 16-7-39. Computation of school housing-aid ratio. 4 For each community, the percent of state aid for school housing costs shall be computed in 5 the following manner: 6 (1) The adjusted equalized weighted assessed valuation for the district is divided by the 7 resident average daily membership for the district (grades twelve (12) and below); (2) The adjusted 8 equalized weighted assessed valuation for the state is divided by the resident average daily 9 membership for the state (grades twelve (12) and below); (1) is then divided by (2) and the resultant 10 ratio is multiplied by a factor currently set at sixty-two percent (62%) which represents the 11 approximate average district share of school support; the resulting product is then subtracted from 12 one hundred percent (100%) to yield the housing aid share ratio, provided that in no case shall the 13 ratio be less than thirty percent (30%). Provided, that effective July 1, 2010, and annually at the 14 start of each fiscal year thereafter, the thirty percent (30%) floor on said housing-aid share shall be 15 increased by five percent (5%) increments each year until said floor on the housing-aid share ratio 16 reaches a minimum of not less than forty percent (40%). This provision shall apply only to school 17 housing projects completed after June 30, 2010, that received approval from the board of regents 18 prior to June 30, 2012. Provided further, for the fiscal year beginning July 1, 2012, and for 19 LC001814 - Page 2 of 5 subsequent fiscal years, the minimum housing aid share shall be thirty-five percent (35%) for all 1 projects receiving council on elementary and secondary education approval after June 30, 2012. 2 The resident average daily membership shall be determined in accordance with § 16-7-22(1). 3 Provided further, that effective July 1, 2023, and for subsequent fiscal years, the minimum housing 4 aid share ratio shall be forty percent (40%) for all local education agencies. 5 (2) No district shall receive a combined total of more than twenty (20) incentive percentage 6 points for projects that commence construction by December 30, 2023, and five (5) incentive points 7 for projects that commence construction thereafter; provided further, these caps shall be in addition 8 to amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2). Furthermore, a district’s share shall 9 not be decreased by more than half of its regular share irrespective of the number of incentive points 10 received nor shall a district’s state share increase by more than half of its regular share, including 11 amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2), irrespective of the number of incentive 12 points received. 13 16-7-40. Increased school housing ratio. 14 (a)(1) In the case of regional school districts, the school housing aid ratio shall be increased 15 by two percent (2%) for each grade so consolidated. 16 (2) Regional school districts undertaking renovation project(s) shall receive an increased 17 share ratio of four percent (4%) for those specific project(s) only, in addition to the combined share 18 ratio calculated in § 16-7-39 and this subsection. 19 (b) In the case of projects undertaken by districts specifically for the purposes of school 20 safety and security, the school housing aid share ratio shall be increased by five percent (5%) for 21 these specific projects only, in the calculation of school housing aid. The increased share ratio shall 22 continue to be applied for as long as the project(s) receives state housing aid. In order to qualify for 23 the increased share ratio, seventy-five percent (75%) of the project costs must be specifically 24 directed to school safety and security measures. The council on elementary and secondary 25 education shall promulgate rules and regulations for the administration and operation of this 26 section. 27 (c) For purposes of addressing health and safety deficiencies as defined by the school 28 building authority, including the remediation of hazardous materials, the school housing aid ratio 29 shall be increased by five percent (5%) so long as the construction of the project commences by 30 December 30, 2023 June 30, 2024, is completed by December 30, 2028, and a two hundred fifty 31 million dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot. 32 In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a 33 minimum of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 34 LC001814 - Page 3 of 5 (d) For purposes of educational enhancement, including projects devoted to the 1 enhancement of early childhood education and career and technical education, the school housing 2 aid ratio shall be increased by five percent (5%) so long as construction of the project commences 3 by December 30, 2023 June 30, 2024, is completed by December 30, 2028, and a two hundred fifty 4 million dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot. 5 In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a 6 minimum of five hundred thousand dollars ($500,000) must be specifically directed to these 7 purposes. 8 (e) For replacement of a facility that has a facilities condition index of sixty-five percent 9 (65%) or higher, the school housing ratio shall be increased by five percent (5%) so long as 10 construction of the project commences by December 30, 2023 June 30, 2024, is completed by 11 December 30, 2028, does not receive a bonus pursuant to subsection (f) or subsection (g), and a 12 two hundred fifty million dollar ($250,000,000) general obligation bond is approved on the 13 November 2018 ballot. In order to qualify for the increased share ratio, twenty-five percent (25%) 14 of the project costs or a minimum of five hundred thousand dollars ($500,000) must be specifically 15 directed to this purpose. 16 (f) For any new construction or renovation that increases the functional utilization of any 17 facility from less than sixty percent (60%) to more than eighty percent (80%), including the 18 consolidation of school buildings within or across districts, the school housing aid ratio shall be 19 increased by five percent (5%) so long as construction of the project commences by December 30, 20 2023 June 30, 2024, is completed by December 30, 2028, and a two hundred fifty million dollar 21 ($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to 22 qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 23 of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 24 (g) For any new construction or renovation that decreases the functional utilization of any 25 facility from more than one hundred twenty percent (120%) to between eighty-five percent (85%) 26 to one hundred five percent (105%), the school housing ratio shall be increased by five percent 27 (5%) so long as construction of the project commences by December 30, 2023 June 30, 2024, is 28 completed by December 30, 2028, and a two hundred fifty million dollar ($250,000,000) general 29 obligation bond is approved on the November 2018 ballot. In order to qualify for the increased 30 share ratio, twenty-five percent (25%) of the project costs or a minimum of five hundred thousand 31 dollars ($500,000) must be specifically directed to this purpose. 32 (h) For consolidation of two (2) or more school buildings, within or across districts into 33 one school building, the school housing aid ratio shall be increased by five percent (5%) so long as 34 LC001814 - Page 4 of 5 construction of the project commences by December 30, 2023, is completed by December 30, 2028, 1 a two hundred fifty million dollar ($250,000,000) general obligation bond is approved on the 2 November 2018 ballot, and does not receive a bonus pursuant to subsection (f) or subsection (g). 3 In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a 4 minimum of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 5 (i) Any regionalized and/or non-regionalized school district receiving an increased share 6 ratio for a project approved prior to July 1, 2018, shall continue to receive the increased share ratio 7 for as long as the project receives state housing aid. 8 SECTION 2. This act shall take effect upon passage. 9 ======== LC001814 ======== LC001814 - Page 5 of 5 EXPLANATION BY THE LEGISLATIVE COUNCIL OF A N A C T RELATING TO EDUCATION -- FOUNDATION LEVEL SCH OOL SUPPORT *** This act would amend the computation of school housing-aid for school housing projects 1 and would provide that construction of certain projects commence in June, 2024, rather than 2 December, 2023 in order to align such projects with the fiscal year. 3 This act would take effect upon passage. 4 ======== LC001814 ========