Bill Sponsors
Morales, DeSimone, Biah, Ajello, J. Lombardi, Sanchez, Cruz, Potter, Stewart, and Slater
Committee
House Finance
Summary
Select
This bill changes the way Rhode Island calculates state education funding for public schools. It increases the "student success factor" from 40% to 43%, which means school districts will receive additional state money for each student living in a low-income household (at or below 185% of the federal poverty level). Additionally, it ensures that the count of low-income students used for funding in 2027 will not drop below the 2026 count, even if participation in the Supplemental Nutrition Assistance Program (SNAP) changes. It also requires the state to study new ways to count low-income students using Medicaid data.
Sponsor
Analysis
Pros for Progressives
- Increases funding directed toward low-income students by raising the student success factor from 40% to 43%, directly supporting marginalized and economically disadvantaged communities.
- Protects school funding from sudden drops by ensuring the 2027 count of low-income students does not fall below the 2026 levels, maintaining stable support for public education.
- Mandates the exploration of broader data matching, like Medicaid, to identify low-income students, ensuring more disadvantaged children are accurately counted and funded.
Cons for Progressives
- The increase to 43% may still be insufficient to fully address the systemic inequities and resource gaps faced by students in impoverished school districts.
- Relying on SNAP or Medicaid data as a proxy for poverty might still miss undocumented students or marginalized families who are afraid to or unable to enroll in government assistance programs.
- The bill maintains the exclusion of charter school and state-operated school students from the resident average daily membership calculation, potentially limiting equitable funding for low-income students attending those institutions.
Pros for Conservatives
- Requires detailed reporting and oversight regarding the use of funds, ensuring local education agencies are held accountable for how they spend state education aid.
- Mandates the evaluation of special education data to ensure consistency and validity, which could help identify and reduce wasteful spending in high-cost programs.
- Focuses on utilizing existing data systems (like SNAP and Medicaid) to accurately verify poverty status, potentially reducing fraud and ensuring funds only go to those who legitimately qualify.
Cons for Conservatives
- Increases the student success factor from 40% to 43%, which will likely require more state spending and increase the burden on taxpayers.
- Artificially inflates the 2027 poverty count by preventing it from dropping below 2026 levels, guaranteeing higher government spending even if the actual number of low-income students decreases.
- Expands the welfare state's integration with the education system by linking school funding to Medicaid and SNAP participation.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Public school students
- Low-income families
- School districts
- Department of Elementary and Secondary Education
- Taxpayers
Towns Affected
All
Cost to Taxpayers
Amount unknown
Revenue Generated
None
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 05/01/2026 Introduced, referred to House Finance
Bill Text
SECTION 1. Section 16-7.2-3 of the General Laws in Chapter 16-7.2 entitled "The Education Equity and Property Tax Relief Act" is hereby amended to read as follows:
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 subsection (a)(1) of this section and the amount to support high-need students in subsection (a)(2) of this section, 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:
(i) Multiplying a student success factor offorty percent (40%) forty-three percent (43%) by the core instruction per-pupil amount described in subsection (a)(1) of this section 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. Beginning with the FY 2024 calculation, students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines will be determined by participation in the supplemental nutrition assistance program (SNAP). The number of students directly certified through the department of human services shall be multiplied by a factor of 1.6. In FY 2027, due to disruptions in the supplemental nutrition assistance program, the number of students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines shall not be decreased below the number determined for FY 2026; and
(ii) Multiplying a multilingual learner (MLL) factor of twenty percent (20%) by the core instruction per-pupil amount described in subsection (a)(1) of this section, applying that amount for each resident child identified in the three lowest proficiency categories using widely adopted, independent standards and assessments in accordance with subsection (f)(1) of this section and as identified by the commissioner and defined by regulations of the council on elementary and secondary education. Local education agencies shall report annually to the department of elementary and secondary education by September 1, outlining the planned and prior year use of all funding pursuant to this subsection to provide services to MLL students in accordance with LC006399 - Page 2 of 5 requirements set forth by the commissioner of elementary and secondary education. The department shall review the use of funds to ensure consistency with established best practices.
(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.
(f)(1) By October 1, 2023, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2025, the department of elementary and secondary education shall evaluate the number of students by district who qualify as multilingual learner (MLL) students and MLL students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines. The submission shall also include segmentation of these populations by levels as dictated by the WIDA multilingual learner assessment tool used as an objective benchmark for English proficiency. The department shall also prepare and produce expense data sourced from the uniform chart of accounts to recommend funding levels required to support students at the various levels of proficiency as determined by the WIDA assessment tool. Utilizing this information, the department shall recommend a funding solution to meet the needs of multilingual learners; this may include but not be limited to inclusion of MLL needs within the core foundation formula amount through one or multiple weights to distinguish different students of need or through categorical means.
(2) By October 1, 2024, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2026, the department of elementary and secondary education shall develop alternatives to identify students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines through participation in state-administered programs, including, but not limited to, the supplemental nutrition assistance program (SNAP), and RIteCare and other programs that include the collection of required supporting documentation. The department may also include any recommendations that seek to mitigate any disruptions associated LC006399 - Page 3 of 5 with implementation of this new poverty measure or improve the accuracy of its calculation.
(3) The department shall also report with its annual budget request information regarding local contributions to education aid and compliance with §§ 16-7-23 and 16-7-24. The report shall also compare these local contributions to state foundation education aid by community. The department shall also report compliance to each city or town school committee and city or town council.
(4) By October 1, 2025, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2027, the department of elementary and secondary education shall submit a report developed in coordination with the department of administration and the Rhode Island longitudinal data system within the office of the postsecondary commissioner. The report shall provide an overview of the process for matching the department of human services program participation data to the department of elementary and secondary education student enrollment records for use in the education funding formula and recommend methods to ensure consistency and accuracy in future matching processes.
(5) As part of its FY 2027 budget submission, the department shall also submit an estimate of foundation education aid that uses expanded direct certification with Medicaid matching in consultation with the Rhode Island longitudinal data system and the executive office of health and human services to identify students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines, in addition to an estimate under the current law poverty determination.
(6) By December 31, 2025, the department of elementary and secondary education shall also develop and submit a report to the governor, speaker of the house, and senate president on current and recommended processes to ensure the consistency and validity of submitted high-cost special education data from local education agencies.
SECTION 2. This act shall take effect upon passage.
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 subsection (a)(1) of this section and the amount to support high-need students in subsection (a)(2) of this section, 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:
(i) Multiplying a student success factor of
(ii) Multiplying a multilingual learner (MLL) factor of twenty percent (20%) by the core instruction per-pupil amount described in subsection (a)(1) of this section, applying that amount for each resident child identified in the three lowest proficiency categories using widely adopted, independent standards and assessments in accordance with subsection (f)(1) of this section and as identified by the commissioner and defined by regulations of the council on elementary and secondary education. Local education agencies shall report annually to the department of elementary and secondary education by September 1, outlining the planned and prior year use of all funding pursuant to this subsection to provide services to MLL students in accordance with LC006399 - Page 2 of 5 requirements set forth by the commissioner of elementary and secondary education. The department shall review the use of funds to ensure consistency with established best practices.
(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.
(f)(1) By October 1, 2023, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2025, the department of elementary and secondary education shall evaluate the number of students by district who qualify as multilingual learner (MLL) students and MLL students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines. The submission shall also include segmentation of these populations by levels as dictated by the WIDA multilingual learner assessment tool used as an objective benchmark for English proficiency. The department shall also prepare and produce expense data sourced from the uniform chart of accounts to recommend funding levels required to support students at the various levels of proficiency as determined by the WIDA assessment tool. Utilizing this information, the department shall recommend a funding solution to meet the needs of multilingual learners; this may include but not be limited to inclusion of MLL needs within the core foundation formula amount through one or multiple weights to distinguish different students of need or through categorical means.
(2) By October 1, 2024, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2026, the department of elementary and secondary education shall develop alternatives to identify students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines through participation in state-administered programs, including, but not limited to, the supplemental nutrition assistance program (SNAP), and RIteCare and other programs that include the collection of required supporting documentation. The department may also include any recommendations that seek to mitigate any disruptions associated LC006399 - Page 3 of 5 with implementation of this new poverty measure or improve the accuracy of its calculation.
(3) The department shall also report with its annual budget request information regarding local contributions to education aid and compliance with §§ 16-7-23 and 16-7-24. The report shall also compare these local contributions to state foundation education aid by community. The department shall also report compliance to each city or town school committee and city or town council.
(4) By October 1, 2025, as part of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2027, the department of elementary and secondary education shall submit a report developed in coordination with the department of administration and the Rhode Island longitudinal data system within the office of the postsecondary commissioner. The report shall provide an overview of the process for matching the department of human services program participation data to the department of elementary and secondary education student enrollment records for use in the education funding formula and recommend methods to ensure consistency and accuracy in future matching processes.
(5) As part of its FY 2027 budget submission, the department shall also submit an estimate of foundation education aid that uses expanded direct certification with Medicaid matching in consultation with the Rhode Island longitudinal data system and the executive office of health and human services to identify students whose family income is at or below one hundred eighty-five percent (185%) of federal poverty guidelines, in addition to an estimate under the current law poverty determination.
(6) By December 31, 2025, the department of elementary and secondary education shall also develop and submit a report to the governor, speaker of the house, and senate president on current and recommended processes to ensure the consistency and validity of submitted high-cost special education data from local education agencies.
SECTION 2. This act shall take effect upon passage.