Rhode Island General Laws
Chapter 16-7.2 - The Education Equity and Property Tax Relief Act
Section 16-7.2-3. - Permanent foundation education aid established.

§ 16-7.2-3. Permanent foundation education aid established.
(a) Beginning in the 2012 fiscal year, the following foundation education-aid formula shall take effect. The foundation education aid for each district shall be the sum of the core instruction amount in subdivision (a)(1) and the amount to support high-need students in subdivision (a)(2), which shall be multiplied by the district state-share ratio calculated pursuant to § 16-7.2-4 to determine the foundation aid.
(1) The core-instruction amount shall be an amount equal to a statewide, per-pupil core-instruction amount as established by the department of elementary and secondary education, derived from the average of northeast regional expenditure data for the states of Rhode Island, Massachusetts, Connecticut, and New Hampshire from the National Center for Education Statistics (NCES) that will adequately fund the student instructional needs as described in the basic education program and multiplied by the district average daily membership as defined in § 16-7-22. Expenditure data in the following categories: instruction and support services for students, instruction, general administration, school administration, and other support services from the National Public Education Financial Survey, as published by NCES, and enrollment data from the Common Core of Data, also published by NCES, will be used when determining the core-instruction amount. The core-instruction amount will be updated annually. For the purpose of calculating this formula, school districts’ resident average daily membership shall exclude charter school and state-operated school students.
(2) The amount to support high-need students beyond the core-instruction amount shall be determined by multiplying a student success factor of forty percent (40%) by the core instruction per-pupil amount described in subdivision (a)(1) and applying that amount for each resident child whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines, hereinafter referred to as “poverty status.” By October 1, 2022, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2024 and thereafter, the department of elementary and secondary education shall develop and utilize a poverty measure that in the department’s assessment most accurately serves as a proxy for the poverty status referenced in this subsection and does not rely on the administration of school nutrition programs. The department shall utilize this measure in calculations pursuant to this subsection related to the application of the student success factor, in calculations pursuant to § 16-7.2-4 related to the calculation of the state share ratio, and in the formulation of estimates pursuant to subsection (b) below. The department may also include any recommendations which seek to mitigate any disruptions associated with the implementation of this new poverty measure or improve the accuracy of its calculation.
(b) The department of elementary and secondary education shall provide an estimate of the foundation education aid cost as part of its budget submission pursuant to § 35-3-4. The estimate shall include the most recent data available as well as an adjustment for average daily membership growth or decline based on the prior year experience.
(c) In addition, the department shall report updated figures based on the average daily membership as of October 1 by December 1.
(d) Local education agencies may set aside a portion of funds received under subsection (a) to expand learning opportunities such as after school and summer programs, full-day kindergarten and/or multiple pathway programs, provided that the basic education program and all other approved programs required in law are funded.
(e) The department of elementary and secondary education shall promulgate such regulations as are necessary to implement fully the purposes of this chapter.
History of Section.P.L. 2010, ch. 124, § 4; P.L. 2010, ch. 125, § 4; P.L. 2016, ch. 142, art. 11, § 2; P.L. 2018, ch. 47, art. 9, § 2; P.L. 2022, ch. 231, art. 10, § 2, effective June 27, 2022.