We propose a new approach that utilizes the dynamic state of cortical functional connectivity for the classification of task-based electroencephalographic (EEG) data. We introduce a novel feature extraction framework that locates functional networks in the cortex as they convene at different time intervals across different frequency bands. The framework starts by applying the wavelet transform to isolate, then augment, EEG frequency bands. Next, the time intervals of stationary functional states, within the augmented data, are identified using the source-informed segmentation algorithm. Functional networks are localized in the brain, during each segment, using a singular value decomposition-based approach. For feature selection, we propose a discriminative-associative algorithm, and use it to find the sub-networks showing the highest recurrence rate differences across the target tasks. The sequences of augmented functional networks are projected onto the identified sub-networks, for the final sequences of features. A dynamic recurrent neural network classifier is then used for classification. The proposed approach is applied to experimental EEG data to classify motor execution and motor imagery tasks. Our results show that an accuracy of 90% can be achieved within the first 500 msec of the cued task-planning phase.