DRAFT State Agency Review RIDE reviews and provides recommendation to - - PowerPoint PPT Presentation

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Dec 31, 2022 396 likes •449 views

Coming Together Regionalization Approval Process and Timeline LOCAL approvals Planning Board Creation of Regional School If " Yes " Voter Approval District Planning Board to study Propose Agreement Each community places the feasibility of

SLIDE 1

Coming Together

Regionalization Approval Process and Timeline LOCAL approvals STATE approvals

Local Planning State Approvals Local Approvals

Planning Board

Creation of Regional School District Planning Board to study the feasibility of regionalization

If "Yes" Propose Agreement

Per state law, the planning board must consider sixteen items, including:

Board provides agreement & recommended regionalization plan to RIDE for review & consideration

Voter Approval

Each community places question before the voters at a special or annual town meeting

r through referendum.

6 months maximum

State Agency Review

RIDE reviews and provides recommendation to Commissioner

Council Approval

With recommendation from RIDE, Commissioner makes recommendation to CESE

18 months maximum will regionalization allow "economies of scale" savings; will regionalization allow the offering of a more comprehensive program for high school students; impact on transportation costs; spending per pupil; effects of local labor agreements; facilities condition and needs and more...

DRAFT

SLIDE 2

Regionalization Approval Process & Necessity of School Construction Preliminary Timeline

Council Approval

Authorization to move forward with Stage II

2020

Nov. Spring Sept. Feb. May Voter Approval for bond projects Summer Council Approval Appoint Regional School District Planning Board If "YES" Final Agreement to RIDE for review and recommendation Voter Approval for Regionalization

General Election/November 2020: Regionalization Special Election/2021: Facilities Bond

Summer/Fall Council Approval Winter

Regionalization Track

SBA Stage I SBA Stage II Preliminary Approval Enabling Legislation

For projects that are using bonds or other forms of indebtedness

2019 2021 2022

Necessity School Construction Track

Study the feasibility of regionalization and make recommendation (Yes or No)

Facilities Master Planning

Timeline

DRAFT

SLIDE 3

Building with Us

1. Established six temporary bonus

incentives

2. Provides $250 million in “pay-as-

you-go” funding to support approved projects

How much pay-as-you-go funding can I receive?

LEAs will receive 15 percent of their total state share in pay-as-you-go funds from the bond. So, for example, if you have a $100 million project and have a 61 percent state share ratio, the state will pay $61 million. Fifteen percent of $61 million - or $9.15 million - will be

ffered as pay-as-you-go funding.

In the "Bonus"

Permanent

School Safety & Security

If 75% of a project is for the purposes of School Safety & Security, then the project shall receive a 5% bonus.

Commence by 2022 - Complete by 2027

Health & Safety

Projects that address Health and Safety Deficiencies shall receive a 5% bonus.

Educational Enhancements

Projects that address Educational Enhancements such as Early Childhood Education and Career and Technical Education shall receive a 5% bonus.

Commence by 2023 - Complete by 2028

Replacement

Replacement of a facility that has a Facility Condition Index of 65% or higher shall receive a 5% bonus. In order to qualify for the increased share ratio for the temporary bonuses, 25% of the project costs, or a minimum of $500,000, must be specifically directed to these purposes.

Increase Utilization

New construction or renovation that increases functional utilization from less than 60% to more than 80% shall receive a 5% bonus.

Decrease Overcrowding

New construction or renovation that decreases overcrowding from more than 120% functional utilization to between 85% and 105% shall receive a 5% bonus.

Newer & Fewer

Consolidation of two or more school buildings (Newer and Fewer) into one school building shall receive a 5% bonus.

How to Take Advantage of Rhode Island's Historic School Facilities Bond

The statewide bond triggered two components:

Rhode Island voters approved a statewide school construction bond

n November 6, 2018.

SLIDE 4

Building with Us

How to Take Advantage of Rhode Island's Historic School Facilities Bonus Incentives with Regionalization

Local Base Reimbursement Newport Middletown

Regional District

State Share 35% Local Share 65%

Regional Bonus (K-12) Project eligible for maximum incentive bonuses Regional District Maximum Eligible

$50M Project $50M Project State = $17.5M Local = $32.5M State = $17.5M Local = $32.5M State = $80.5M Local = $19.5M

80.5%

How much pay-as-you-go funding would be offered?

Example of Financial Impact

$100M Combined Projects State Share 35% Local Share 65% State Share 80.5%

Reg. Share: 19.5%

Reimbursement: Temporary Incentives 35% 26% 19.5%* Reimbursement: Permanent Incentives

Local Base Reimbursement Regional Bonus (K-12) Project eligible for maximum incentive bonuses Regional District Maximum Eligible

66% 35% 26% 5%

(2% per grade) (2% per grade)

Middletown Newport

Regional District

$50M (project) x 35% (base rate) x 15% (pay-go) = $2.6M (up front) $50M (project) x 35% (base rate) x 15% (pay-go) = $2.6M (up front) $100M (project) x 61%**(base rate) x 15% (pay-go) = $9.15M (up front)

(Available for projects commencing by December 2022) (Available for projects beyond time limited bonuses)

* State law caps incentive bonuses ** Incentive bonus rates are applied once projects are complete Middletown: $9.75M Newport: $9.75M

DRAFT

SLIDE 5

Building with Us

How to Take Advantage of Rhode Island's Historic School Facilities Bonus Incentives with Regionalization

Newport Middletown

Regional District

State Share 35% Local Share 65% $100M Project $100M Project State = $35M Local = $65M State = $35M Local = $65M State = $80.5M Local = $19.5

Example of Financial Impact

$100M Combined Projects State Share 35% Local Share 65% State Share 80.5%

Reg. Share: 19.5%

Middletown: $9.75M Newport: $9.75M

Local Base Reimbursement Regional Bonus (K-12) Project eligible for maximum temporary incentive bonuses Regional District Maximum Eligible

80.5% Reimbursement: Short-term Incentives 35% 26% 19.5%*

(2% per grade) (Available for projects commencing by December 2022)

Reimbursement: Long-term Incentives

Local Base Reimbursement Regional Bonus (K-12) Project eligible for maximum permanent incentive bonus Regional District Maximum Eligible

66% 35% 26% 5%

(2% per grade) (Available for projects beyond time limited bonuses)

How much pay-as-you-go funding would be offered? Middletown Newport

Regional District

$100M (project) x 35% (base rate) x 15% (pay-go) = $5.25M (up front) $100M (project) x 35% (base rate) x 15% (pay-go) = $5.25M (up front) $100M (project) x 61%**(base rate) x 15% (pay-go) = $9.15M (up front)

* State law caps incentive bonuses ** Incentive bonus rates are applied once projects are complete

The regionalization of Middletown and Newport would result in school construction housing aid reimbursement potentially reaching 80.5% by taking advantage of bonus incentives available through 2022 and then doubling to 61% permanently (up to 66% with bonus) . Below explains how an increased school housing aid reimbursement rate could be achieved and the financial impact (including of up front funding available through the $250M statewide construction bond) for each district.