Rhode Island 2025 Regular Session

Rhode Island House Bill H5533 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- H 5533
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7	7	LC001136
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TOWNS AN D CITIES -- STATE AID
16	16	Introduced By: Representatives Cortvriend, McGaw, Cotter, Chippendale, Newberry,
17	17	Place, Edwards, Corvese, Noret, and Donovan
18	18	Date Introduced: February 13, 2025
19	19	Referred To: House Finance
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22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 45-13-1 of the General Laws in Chapter 45-13 entitled "State Aid" is 1
24	24	hereby amended to read as follows: 2
25	25	45-13-1. Apportionment of annual appropriation for state aid. 3
26	26	(a) As used in this chapter, the following words and terms have the following meanings: 4
27	27	(1) “Income” means the most recent estimate of per-capita income for a city, town or 5
28	28	county as reported by the United States Department of Commerce, Bureau of the Census. 6
29	29	(2) “Population” means the most recent estimates of population for each city and town as 7
30	30	reported by the United States Department of Commerce, Bureau of the Census. 8
31	31	(3) “Reference year” means the second fiscal year preceding the beginning of the fiscal 9
32	32	year in which the distribution of state aid to cities and towns is made provided however that the 10
33	33	reference year for distributions made in fiscal year 2007-2008 shall be the third fiscal year 11
34	34	preceding the beginning of the fiscal year 2007-2008 and provided further that the reference year 12
35	35	for distributions made in fiscal year 2008-2009 shall be the fourth fiscal year preceding the 13
36	36	beginning of the fiscal year 2008-2009. 14
37	37	(4) “Tax effort” means the total taxes imposed by a city or town for public purposes or the 15
38	38	totals of those taxes for the cities or towns within a county (except employee and employer 16
39	39	assessments and contributions to finance retirement and social insurance systems and other special 17
40	40	assessments for capital outlay) determined by the United States Secretary of Commerce for general 18
41	41	statistical purposes and adjusted to exclude amounts properly allocated to education expenses. 19
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45	45	(b) Aid to cities and towns shall be apportioned as follows: For each county, city or town, 1
46	46	let R be the tax effort divided by the square of per capita income, i.e., R = (tax effort)/(income x 2
47	47	income). 3
48	48	The amount to be allocated to the counties shall be apportioned in the ratio of the value of 4
49	49	R for each county divided by the sum of the values of R for all five (5) counties. 5
50	50	The amount to be allocated for all cities and for all towns within a county shall be the 6
51	51	allocation for that county apportioned proportionally to the total tax effort of the towns and cities 7
52	52	in that county. 8
53	53	The amount to be allocated to any city or town is the amount allocated to all cities or all 9
54	54	towns within the county apportioned in the ratio of the value of R for that city (or town) divided by 10
55	55	the sum of the values of R for all cities (or all towns) in that county; provided, further, that no city 11
56	56	or town shall receive an entitlement in excess of one hundred forty-five percent (145%) of that city 12
57	57	or town’s population multiplied by the average per capita statewide amount of the annual 13
58	58	appropriation for state aid to cities and towns. Any excess entitlement shall be allocated to the 14
59	59	remainder of the cities and towns in the respective county in accordance with the provisions of this 15
60	60	section. 16
61	61	For fiscal year 2004, notwithstanding the provisions of subsection (a), aid calculations shall 17
62	62	be based on a blended rate of ninety percent (90%) of the data from the 1990 census and ten percent 18
63	63	(10%) of the data from the 2000 census. In each of the succeeding nine (9) fiscal years, the 19
64	64	calculations shall be based on a blended rate that increases the percentage of data utilized from the 20
65	65	2000 census by ten percent (10%) from the previous year and decreases the percentage of the data 21
66	66	utilized from the 1990 census by ten percent (10%) from the previous year. 22
67	67	(c) The total amount of aid to be apportioned pursuant to subsection (b) above shall be 23
68	68	specified in the annual appropriation act of the state and shall be equal to the following: 24
69	69	(1) For fiscal years ending June 30, 1994 through June 30, 1998, the total amount of aid 25
70	70	shall be based upon one percent (1%) of total state tax revenues in the reference year. 26
71	71	(2) For the fiscal year ending June 30, 1999, the total amount of aid shall be based upon 27
72	72	one and three-tenths percent (1.3%) of total state tax revenues in the reference year. 28
73	73	(3) For the fiscal year ending June 30, 2000, the total amount of aid shall be based upon 29
74	74	one and seven-tenths percent (1.7%) of total state tax revenues in the reference year. 30
75	75	(4) For the fiscal year ending June 30, 2001, the total amount of aid shall be based upon 31
76	76	two percent (2.0%) of total state tax revenues in the reference year. 32
77	77	(5) For the fiscal year ending June 30, 2002, the total amount of aid shall be based upon 33
78	78	two and four-tenths percent (2.4%) of total state tax revenues in the reference year. 34
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82	82	(6) For the fiscal year ending June 30, 2003, the total amount of aid shall be based upon 1
83	83	two and four-tenths percent (2.4%) of total state tax revenues in the reference year. 2
84	84	(7) For the fiscal year ending June 30, 2004, the total amount of aid shall be based upon 3
85	85	two and seven-tenths percent (2.7%) of total state tax revenues in the reference year. 4
86	86	(8) For the fiscal year ending June 30, 2005, the total amount of aid shall be fifty-two 5
87	87	million four hundred thirty-eight thousand five hundred thirty-two dollars ($52,438,532). 6
88	88	(9) For the fiscal year ending June 30, 2006, the total amount of aid shall be based upon 7
89	89	three percent (3%) of total state tax revenues in the reference year. 8
90	90	(10) For the fiscal year ending June 30, 2007 the total amount of aid shall be sixty-four 9
91	91	million six hundred ninety-nine thousand three dollars ($64,699,003). 10
92	92	(11) For the fiscal year ending June 30, 2008, the total amount of aid shall be sixty-four 11
93	93	million six hundred ninety-nine thousand three dollars ($64,699,003). 12
94	94	(12) [Deleted by P.L. 2009, ch. 68, art. 6, section 3.] 13
95	95	(13) [Deleted by P.L. 2007, ch. 73, art. 25, section 1.] 14
96	96	(14) [Deleted by P.L. 2007, ch. 73, art. 25, section 1.] 15
97	97	(d) For the fiscal year ending June 30, 2008 the apportionments of state aid as derived 16
98	98	through the calculations as required by subsections (a) through (c) of this section shall be adjusted 17
99	99	downward statewide by ten million dollars ($10,000,000). 18
100	100	(e) For the fiscal year ending June 30, 2009, the total amount of aid shall be twenty-five 19
101	101	million dollars ($25,000,000) with such distribution allocated proportionately on the same basis as 20
102	102	the original enactment of general revenue sharing of FY 2009. 21
103	103	(f) For the fiscal year ending June 30, 2009 and thereafter, funding shall be determined by 22
104	104	appropriation. 23
105	105	(g) For the fiscal year ending June 30, 2026, the total amount of aid shall be thirty-nine 24
106	106	million dollars ($39,000,000) to be allocated and distributed based on population as determined by 25
107	107	the 2020 census. 26
108	108	(h) For the fiscal year ending June 30, 2027 and thereafter, aid shall be increased by the 27
109	109	total percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U). 28
110	110	SECTION 2. This act shall take effect upon passage. 29
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117	117	EXPLANATION
118	118	BY THE LEGISLATIVE COUNCIL
119	119	OF
120	120	A N A C T
121	121	RELATING TO TOWNS AN D CITIES -- STATE AID
122	122	***
123	123	This act would reinstate general revenue sharing of state aid among the thirty-nine cities 1
124	124	and towns in Rhode Island. The initial amount would be based upon population, and would be 2
125	125	increased annually thereafter based on the increase in the Consumer Price Index for all Urban 3
126	126	Consumers. 4
127	127	This act would take effect upon passage. 5
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