The bill amends Section 16-7.1-5 of the General Laws concerning the Paul W. Crowley Rhode Island Student Investment Initiative, focusing on intervention and support for failing schools. It removes the authority of the commissioner of elementary and secondary education to withhold funds from a debtor community through the general treasurer. The local school committee is required to fund the school or school district at the same nominal amount as in the prior academic year, increased by twenty percent (20%) of the increase in taxes issued by the municipality or town where the school or school district is located.

Additionally, the bill introduces the role of a fiscal overseer appointed by the director of revenue for schools or school districts under the board of regents' control. This overseer will supervise all financial services and activities, advise local financial officials, review proposed contracts and obligations, monitor expenditures, approve the budget for the school or school district, and report monthly to the director of revenue, the auditor general, the governor, the chief executive of the municipality where the school or school district is located, and the chairpersons of the house finance and senate finance committees on the use of funds for the benefit of the school or school district. The act will take effect upon passage.

Statutes affected:
5389: 16-7.1-5