2024 -- S 2601

========

LC005198

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

____________

A N   A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

     Introduced By: Senator Roger Picard

     Date Introduced: March 01, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 16-7.2-3 and 16-7.2-4 of the General Laws in Chapter 16-7.2 entitled

"The Education Equity and Property Tax Relief Act" are 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 subdivision (a)(1), and the amount to support high-need students in subdivision (a)(2),

and the amount to support school districts in subsection (a)(3) 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 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. 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.

     (3) The amount to support school districts with students residing in housing taxed in

accordance with § 44-5-13.11, shall be determined by multiplying a housing factor of forty percent

(40%) by the core instruction per pupil amount described in § 16-7.2-3(a)(1), and applying that

amount to all resident children residing in housing taxed in accordance with § 44-5-13.11.

     (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

LC005198 - Page 2 of 5

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

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.

     16-7.2-4. Determination of state’s share.

     (a) For each district, the state’s share of the foundation education aid calculated pursuant

to § 16-7.2-3(a) shall use a calculation that considers a district’s revenue-generating capacity and

concentration of high-need students. The calculation is the square root of the sum of the state share

LC005198 - Page 3 of 5

ratio for the community calculation, pursuant to § 16-7-20, squared plus the percentage of students

residing in housing taxed in accordance with § 44-5-13.11 squared, plus the district’s percentage

of students in grades PK-6 in poverty status squared, divided by two.

     If this calculation results in a state share ratio that is less than the state share ratio for the

community calculated pursuant to § 16-7-20(a) and that district’s poverty status percentage as

defined in § 16-7.2-3(a)(2) is greater than fifty percent (50%), the state share ratio shall be equal to

the state share ratio for the community calculated pursuant to § 16-7-20(a).

     (b) For purposes of determining the state’s share, school district student data used in this

calculation shall include charter school and state school students. These ratios are used in the

permanent foundation education aid formula calculation described in § 16-7.2-5.

     (c) There shall be a poverty loss stabilization fund for districts that experience a decline in

the state share ratio calculated pursuant to subsection (a) of this section from the prior year of more

than 2.0 percent (2%). The amount shall be equal to fifty percent (50%) of the difference in the

amount of permanent foundation education aid received pursuant to § 16-7.2-3 received in the prior

year.

     SECTION 2. This act shall take effect upon passage and shall apply to all school years

commencing on or after July 1, 2024.

========

LC005198

========

LC005198 - Page 4 of 5

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX

RELIEF ACT

***

     This act would amend the method for the calculation of the permanent foundation

education aid to school districts, and would make an adjustment based upon students residing in

qualified low-income housing.

     This act would take effect upon passage and would apply to all school years commencing

on or after July 1, 2024.

========

LC005198

========

LC005198 - Page 5 of 5