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(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 forty percent (40%) ; provided further, for the
fiscal year beginning July 1, 2026, and for subsequent fiscal years, the student success factor shall
be 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; 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
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
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 and FY 2028 budget submission submissions , 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.
(7) By October 1, 2026, 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, in collaboration
with the office of management and budget and the division of municipal finance, submit a report
comparing the funding system proposed in December 2025, by the Blue Ribbon Commission,
convened by the Rhode Island Foundation, to the current system, using validated FY 2025 Uniform
Chart of Accounts data. The report shall include, but not be limited to, a comparison of state and
local contributions for traditional districts and charter schools using different state share
percentages, recommendations for proposed weights for special education and career and technical
education students, and an analysis of the statutory recommendations.