§ 16-7.1-6 - Core instruction equity fund.
SECTION 16-7.1-6
§ 16-7.1-6 Core instruction equity fund.– The general assembly recognizes that Rhode Island cities and towns primarilyrely on the local property tax to finance education programs, and that thestate's highest effective property tax rates are concentrated in the state'surban communities. Therefore, certain communities, because of low tax capacityand high tax effort, are unable to appropriate sufficient funds for the supportof core instructional programs. The general assembly also recognizes the needto reduce inequities in resource distribution among the state's cities andtowns as well as among the state's districts and schools. Therefore, thegeneral assembly establishes the Core Instructional Equity Fund to improve thecapacity of cities and towns to support the core instruction activities thatare the basis of daily teaching and learning in all classrooms. The generalassembly shall annually appropriate and distribute some sum to meet theseneeds. The sum shall be distributed based upon the following formula:
(1) Data. Data used for the following calculations aredefined as follows:
(i) Population (state and municipal) shall be included fromthe most recent census;
(ii) Equalized weighted assessed valuations (EWAV) from themost recently completed and certified study pursuant to § 16-7-21;
(iii) Most recent tax data certified by the local assessorsto the department of administration, and core instructional per pupil cost asdetermined by the commissioner of elementary and secondary education;
(iv) Most recent resident average daily membership (ADM)pursuant to § 16-7-22;
(i) Community Property Tax Capacity Index Calculation
Calculate statewide tax rate:
Step 1: total statewide property tax yield/total statewideproperty tax base (EWAV) = state average tax rate
Step 2: calculate statewide yield per capita:
Total statewide property tax yield/state population (mostrecent census) = state property tax yield per capita
Step 3: calculate municipal property tax yield per capita:
Municipal property tax yield/population = municipal propertytax yield per capita
Step 4: calculate municipal property tax capacity:
(Municipal property tax yield per capita/state property taxyield per capita) * 100 = Community property tax capacity index
(ii) Total Tax Capacity Index Calculation:
Step 5: calculate community hypothetical property tax yieldper capita:
(Statewide tax rate * municipal property tax base(EWAV))/community population = Hypothetical community property tax yield percapita
Step 6: calculate total tax capacity index:
(Hypothetical municipal yield per capita/state averageproperty tax yield per capita) * 100 = total tax capacity index
(iii) Tax Effort Index Calculation:
Calculate property tax effort calculation:
Step 7: (Municipal property tax yield per capita/hypotheticalmunicipal property tax yield per capita) * 100 = Property Tax Effort Index
(iv) Capacity/Effort Index
Calculation of the equity index:
Step 8: (Property tax capacity index/tax effort index =Equity index
(v) Instructional Cost Per Pupil
Calculate the instructional cost per ADM:
Step 9: core instructional district cost/district ADM = perpupil core instructional district cost
Step 10: select the statewide average per pupil instructionalcost
Step 11: state average per pupil core instructional cost s district per pupil core instructional cost = core gap
Step 12: core gap * ADM = weighted difference.
(3) Eligibility to receive funds. Only those districtswhich have a gap in instructional core funding and which have capacity of lessthan 0.50 per the equity index are eligible to receive funds under thisprovision.
(4) For FY 2003, districts shall receive the greater of thedollar amount received in FY 2002 or the dollar amount calculated as the FY2003 entitlement. For FY 2003, ten percent (10%) of these funds shall, inaddition to the purposes enumerated above, be used to increase student andschool performance, and shall be only spent with the prior approval of thecommissioner of elementary and secondary education.