AN ACT INCREASING THE AMOUNT A SCHOOL DISTRICT MAY REDUCE ITS MINIMUM BUDGET REQUIREMENT WHEN IT EXPERIENCES A DECLINE IN STUDENT ENROLLMENT.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 10-262j of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(a) Except as otherwise provided under the provisions of subsections (c) to (e), inclusive, of this section, for the fiscal year ending June 30, [2016] 2018, the budgeted appropriation for education shall be not less than the budgeted appropriation for education for the fiscal year ending June 30, [2015] 2017, plus any aid increase described in subsection (d) of section 10-262i, as amended by this act, except that a town may reduce its budgeted appropriation for education for the fiscal year ending June 30, [2016] 2018, by one or more of the following:

(1) If a town experiences an aid reduction, as described in subsection (d) of section 10-262i, as amended by this act, such town may reduce its budgeted appropriation for education in an amount equal to the aid reduction;

[(1)] (2) Any district with [(A) a resident student population in which the number of students who are eligible for free or reduced price lunches pursuant to federal law and regulations is equal to or greater than twenty per cent, and (B)] a resident student count for October 1, [2014] 2016, using the data of record as of January 31, [2015] 2017, that is lower than such district's resident student count for October 1, [2013] 2015, using the data of record as of January 31, [2015] 2017, may reduce such district's budgeted appropriation for education by the difference in the number of resident students for such years multiplied by fifty per cent of the net current expenditures per resident student of such district; [, provided such reduction shall not exceed one and one-half per cent of the district's budgeted appropriation for education for the fiscal year ending June 30, 2015, except that the Commissioner of Education may, following a review of a town's proposed reductions to its budgeted appropriation for education, permit a town to reduce its budgeted appropriation for education in an amount greater than one and one-half per cent if the board of education for such town has approved, by vote at a meeting duly called, such proposed reductions;]

[(2) Any district with (A) a resident student population in which the number of students who are eligible for free or reduced price lunches pursuant to federal law and regulations is less than twenty per cent, and (B) a resident student count for October 1, 2014, using the data of record as of January 31, 2015, that is lower than such district's resident student count for October 1, 2013, using the data of record as of January 31, 2015, may reduce such district's budgeted appropriation for education by the difference in the number of resident students for such years multiplied by fifty per cent of the net current expenditures per resident student of such district, provided such reduction shall not exceed three per cent of the district's budgeted appropriation for education for the fiscal year ending June 30, 2015, except that the Commissioner of Education may, following a review of a town's proposed reductions to its budgeted appropriation for education, permit a town to reduce its budgeted appropriation for education in an amount greater than three per cent if the board of education for such town has approved, by vote at a meeting duly called, such proposed reductions;]

(3) Any district (A) that does not maintain a high school and pays tuition to another school district pursuant to section 10-33 for resident students to attend high school in another district, and (B) in which the number of resident students attending high school for such district for October 1, [2014] 2016, using the data of record as of January 31, [2015] 2017, is lower than such district's number of resident students attending high school for October 1, [2013] 2015, using the data of record as of January 31, [2015] 2017, may reduce such district's budgeted appropriation for education by the difference in the number of resident students attending high school for such years multiplied by the amount of tuition paid per student pursuant to section 10-33; or

(4) Any district that realizes new and documentable savings through increased district efficiencies approved by the Commissioner of Education or through regional collaboration or cooperative arrangements pursuant to section 10-158a may reduce such district's budgeted appropriation for education in an amount equal to half of the amount of savings experienced as a result of such district efficiencies, regional collaboration or cooperative arrangement, provided such reduction shall not exceed one-half of one per cent of the district's budgeted appropriation for education for the fiscal year ending June 30, [2015] 2017.

(b) Except as otherwise provided under the provisions of subsections (c) to (e), inclusive, of this section, for the fiscal year ending June 30, [2017] 2019, the budgeted appropriation for education shall be not less than the budgeted appropriation for education for the fiscal year ending June 30, [2016] 2018, plus any aid increase received pursuant to subsection (d) of section 10-262i, as amended by this act, except that a town may reduce its budgeted appropriation for education for the fiscal year ending June 30, [2017] 2019, by one or more of the following:

(1) If a town experiences an aid reduction, as described in subsection (d) of section 10-262i, as amended by this act, such town may reduce its budgeted appropriation for education in an amount equal to the aid reduction;

(2) Any district with [(A) a resident student population in which the number of students who are eligible for free or reduced price lunches pursuant to federal law and regulations is equal to or greater than twenty per cent, and (B)] a resident student count for October 1, [2015] 2017, using the data of record as of January 31, [2016] 2018, that is lower than such district's resident student count for October 1, [2014] 2016, using the data of record as of January 31, [2016] 2018, may reduce such district's budgeted appropriation for education by the difference in the number of resident students for such years multiplied by fifty per cent of the net current expenditures per resident student of such district; [, provided such reduction shall not exceed one and one-half per cent of the district's budgeted appropriation for education for the fiscal year ending June 30, 2016, except that the Commissioner of Education may, following a review of a town's proposed reductions to its budgeted appropriation for education, permit a town to reduce its budgeted appropriation for education in an amount greater than one and one-half per cent if the board of education for such town has approved, by vote at a meeting duly called, such proposed reductions;]

[(3) Any district with (A) a resident student population in which the number of students who are eligible for free or reduced price lunches pursuant to federal law and regulations is less than twenty per cent, and (B) a resident student count for October 1, 2015, using the data of record as of January 31, 2016, that is lower than such district's resident student count for October 1, 2014, using the data of record as of January 31, 2016, may reduce such district's budgeted appropriation for education by the difference in the number of resident students for such years multiplied by fifty per cent of the net current expenditures per resident student, as defined in subdivision (45) of section 10-262f, of such district, provided such reduction shall not exceed three per cent of the district's budgeted appropriation for education for the fiscal year ending June 30, 2016, except that the Commissioner of Education may, following a review of a town's proposed reductions to its budgeted appropriation for education, permit a town to reduce its budgeted appropriation for education in an amount greater than three per cent if the board of education for such town has approved, by vote at a meeting duly called, such proposed reductions;]

[(4)] (3) Any district (A) that does not maintain a high school and pays tuition to another school district pursuant to section 10-33 for resident students to attend high school in another district, and (B) in which the number of resident students attending high school for such district for October 1, [2015] 2017, using the data of record as of January 31, [2016] 2018, is lower than such district's number of resident students attending high school for October 1, [2014] 2016, using the data of record as of January 31, [2016] 2018, may reduce such district's budgeted appropriation for education by the difference in the number of resident students attending high school for such years multiplied by the amount of tuition paid per student pursuant to section 10-33; or

[(5)] (4) Any district that realizes new and documentable savings through increased district efficiencies approved by the Commissioner of Education or through regional collaboration or cooperative arrangements pursuant to section 10-158a may reduce such district's budgeted appropriation for education in an amount equal to half of the amount of savings experienced as a result of such district efficiencies, regional collaboration or cooperative arrangement, provided such reduction shall not exceed one-half of one per cent of the district's budgeted appropriation for education for the fiscal year ending June 30, [2015] 2017.

(c) For the fiscal years ending June 30, [2016] 2018, and June 30, [2017] 2019, the Commissioner of Education may permit a town to reduce its budgeted appropriation for education in an amount determined by the commissioner if the school district in such town has permanently ceased operations and closed one or more schools in the school district due to declining enrollment at such closed school or schools in the fiscal years ending June 30, 2013, to June 30, [2016] 2018, inclusive.

(d) For the fiscal years ending June 30, [2016] 2018, and June 30, [2017] 2019, a town currently designated as an alliance district, as defined in section 10-262u, or formerly designated as an alliance district shall not reduce its budgeted appropriation for education pursuant to this section.

(e) For the fiscal years ending June 30, [2016] 2018, and June 30, [2017] 2019, the provisions of this section shall not apply to any district that is in the top ten per cent of school districts based on the accountability index, as defined in section 10-223e.

(f) For the fiscal years ending June 30, [2016] 2018, and June 30, [2017] 2019, the provisions of this section shall not apply to the member towns of a regional school district during the first full fiscal year following the establishment of the regional school district, provided the budgeted appropriation for education for member towns of such regional school district for each subsequent fiscal year shall be determined in accordance with this section.

Sec. 2. Subsection (d) of section 10-262i of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):

(d) (1) (A) For the fiscal year ending June 30, [2017] 2018, if the amount paid to a town for the fiscal year ending June 30, [2017] 2018, pursuant to [section 20 of public act 16-2 of the May special session] section 10-262h, is greater than the amount paid to such town for the fiscal year ending June 30, [2016] 2017, pursuant to [subsection (c) of] section 10-262h, such amount paid to a town for the fiscal year ending June 30, [2017] 2018, minus such amount paid to such town for the fiscal year ending June 30, [2016] 2017, shall be the aid increase for such town for the fiscal year ending June 30, [2017] 2018.

(B) For the fiscal year ending June 30, 2019, if the amount paid to a town for the fiscal year ending June 30, 2019, pursuant to section 10-262h, is greater than the amount paid to such town for the fiscal year ending June 30, 2018, pursuant to section 10-262h, such amount paid to a town for the fiscal year ending June 30, 2019, minus such amount paid to such town for the fiscal year ending June 30, 2018, shall be the aid increase for such town for the fiscal year ending June 30, 2019.

(2) (A) For the fiscal year ending June 30, [2017] 2018, if the amount paid to a town for the fiscal year ending June 30, [2017] 2018, pursuant to [section 20 of public act 16-2 of the May special session] section 10-262h, is less than the amount paid to such town for the fiscal year ending June 30, [2016] 2017, pursuant to [subsection (c) of] section 10-262h, such amount paid to a town for the fiscal year ending June 30, [2016] 2017, minus such amount paid to such town for the fiscal year ending June 30, [2017] 2018, shall be the aid reduction for such town for the fiscal year ending June 30, [2017] 2018.

(B) For the fiscal year ending June 30, 2019, if the amount paid to a town for the fiscal year ending June 30, 2019, pursuant to section 10-262h, is less than the amount paid to such town for the fiscal year ending June 30, 2018, pursuant to section 10-262h, such amount paid to a town for the fiscal year ending June 30, 2018, minus such amount paid to such town for the fiscal year ending June 30, 2019, shall be the aid reduction for such town for the fiscal year ending June 30, 2019.