2025 -- S 0259 ======== LC000722 ======== S T A T E O F R H O D E I S L A N D IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2025 ____________ A N A C T RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX RELIEF ACT Introduced By: Senators Acosta, Gallo, Lawson, Valverde, DiMario, Zurier, Appollonio, Felag, Murray, and Ciccone Date Introduced: February 13, 2025 Referred To: Senate Finance It is enacted by the General Assembly as follows: SECTION 1. Section 16-7.2-3 of the General Laws in Chapter 16-7.2 entitled "The 1 Education Equity and Property Tax Relief Act" is hereby amended to read as follows: 2 16-7.2-3. Permanent foundation education aid established. 3 (a) Beginning in the 2012 fiscal year, the following foundation education-aid formula shall 4 take effect. The foundation education aid for each district shall be the sum of the core instruction 5 amount in subsection (a)(1) of this section and the amount to support high-need students in 6 subsection (a)(2) of this section, which shall be multiplied by the district state-share ratio calculated 7 pursuant to § 16-7.2-4 to determine the foundation aid. 8 (1) The core instruction amount shall be an amount equal to a statewide, per-pupil core 9 instruction amount as established by the department of elementary and secondary education, 10 derived from the average of northeast regional expenditure data for the states of Rhode Island, 11 Massachusetts, Connecticut, and New Hampshire from the National Center for Education Statistics 12 (NCES) that will adequately fund the student instructional needs as described in the basic education 13 program and multiplied by the district average daily membership as defined in § 16-7-22. 14 Expenditure data in the following categories: instruction and support services for students, 15 instruction, general administration, school administration, and other support services from the 16 National Public Education Financial Survey, as published by NCES, and enrollment data from the 17 Common Core of Data, also published by NCES, will be used when determining the core 18 LC000722 - Page 2 of 5 instruction amount. The core instruction amount will be updated annually. For the purpose of 1 calculating this formula, school districts’ resident average daily membership shall exclude charter 2 school and state-operated school students. 3 (2) The amount to support high-need students beyond the core instruction amount shall be 4 determined by: 5 (i) Multiplying a student success factor of forty percent (40%) by the core instruction per-6 pupil amount described in subsection (a)(1) of this section and applying that amount for each 7 resident child whose family income is at or below one hundred eighty-five percent (185%) of 8 federal poverty guidelines, hereinafter referred to as “poverty status.” By October 1, 2022, as part 9 of its budget submission pursuant to § 35-3-4 relative to state fiscal year 2024 and thereafter, the 10 department of elementary and secondary education shall develop and utilize a poverty measure that 11 in the department’s assessment most accurately serves as a proxy for the poverty status referenced 12 in this subsection and does not rely on the administration of school nutrition programs. The 13 department shall utilize this measure in calculations pursuant to this subsection related to the 14 application of the student success factor, in calculations pursuant to § 16-7.2-4 related to the 15 calculation of the state share ratio, and in the formulation of estimates pursuant to subsection (b) 16 below. The department may also include any recommendations which seek to mitigate any 17 disruptions associated with the implementation of this new poverty measure or improve the 18 accuracy of its calculation. Beginning with the FY 2024 calculation, students whose family income 19 is at or below one hundred eighty-five percent (185%) of federal poverty guidelines will be 20 determined by participation in the supplemental nutrition assistance program (SNAP). The number 21 of students directly certified through the department of human services shall be multiplied by a 22 factor of 1.6;. Beginning with the FY 2026 calculation, a student's enrollment in Medicaid shall 23 also be included in the student success factor. The department of elementary and secondary 24 education shall utilize a student's enrollment in Medicaid in calculations pursuant to this subsection 25 related to the application of the student success factor, in calculations pursuant to § 16-7.2-4 related 26 to the calculation of the state share ratio, and in the formulation of estimates pursuant to subsection 27 (b) of this section; and 28 (ii) Multiplying a multilingual learner (MLL) factor of twenty percent (20%) by the core 29 instruction per-pupil amount described in subsection (a)(1) of this section, applying that amount 30 for each resident child identified in the three lowest proficiency categories using widely adopted, 31 independent standards and assessments in accordance with subsection (f)(1) of this section and as 32 identified by the commissioner and defined by regulations of the council on elementary and 33 secondary education. Local education agencies shall report annually to the department of 34 LC000722 - Page 3 of 5 elementary and secondary education by September 1, outlining the planned and prior year use of 1 all funding pursuant to this subsection to provide services to MLL students in accordance with 2 requirements set forth by the commissioner of elementary and secondary education. The 3 department shall review the use of funds to ensure consistency with established best practices. 4 (b) The department of elementary and secondary education shall provide an estimate of the 5 foundation education aid cost as part of its budget submission pursuant to § 35-3-4. The estimate 6 shall include the most recent data available as well as an adjustment for average daily membership 7 growth or decline based on the prior year experience. 8 (c) In addition, the department shall report updated figures based on the average daily 9 membership as of October 1 by December 1. 10 (d) Local education agencies may set aside a portion of funds received under subsection 11 (a) to expand learning opportunities such as after school and summer programs, full-day 12 kindergarten and/or multiple pathway programs, provided that the basic education program and all 13 other approved programs required in law are funded. 14 (e) The department of elementary and secondary education shall promulgate such 15 regulations as are necessary to implement fully the purposes of this chapter. 16 (f)(1) By October 1, 2023, as part of its budget submission pursuant to § 35-3-4 relative to 17 state fiscal year 2025, the department of elementary and secondary education shall evaluate the 18 number of students by district who qualify as multilingual learner (MLL) students and MLL 19 students whose family income is at or below one hundred eighty-five percent (185%) of federal 20 poverty guidelines. The submission shall also include segmentation of these populations by levels 21 as dictated by the WIDA multilingual learner assessment tool used as an objective benchmark for 22 English proficiency. The department shall also prepare and produce expense data sourced from the 23 uniform chart of accounts to recommend funding levels required to support students at the various 24 levels of proficiency as determined by the WIDA assessment tool. Utilizing this information, the 25 department shall recommend a funding solution to meet the needs of multilingual learners; this may 26 include but not be limited to inclusion of MLL needs within the core foundation formula amount 27 through one or multiple weights to distinguish different students of need or through categorical 28 means. 29 (2) By October 1, 2024, as part of its budget submission pursuant to § 35-3-4 relative to 30 state fiscal year 2026, the department of elementary and secondary education shall develop 31 alternatives to identify students whose family income is at or below one hundred eighty-five percent 32 (185%) of federal poverty guidelines through participation in state-administered programs, 33 including, but not limited to, the supplemental nutrition assistance program (SNAP), and RIteCare 34 LC000722 - Page 4 of 5 and other programs that include the collection of required supporting documentation, and beginning 1 with the FY 2026 calculations, a student's enrollment in Medicaid. The department may also 2 include any recommendations that seek to mitigate any disruptions associated with implementation 3 of this new poverty measure or improve the accuracy of its calculation. 4 (3) The department shall also report with its annual budget request information regarding 5 local contributions to education aid and compliance with §§ 16-7-23 and 16-7-24. The report shall 6 also compare these local contributions to state foundation education aid by community. The 7 department shall also report compliance to each city or town school committee and city or town 8 council. 9 SECTION 2. This act shall take effect upon passage. 10 ======== LC000722 ======== LC000722 - Page 5 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 provide that a student's enrollment in Medicaid would be included in 1 calculating and determining the student success factor utilized to support high-need students 2 beyond the core instructional amount, for purposes of the foundation education-aid formula. This 3 would begin and be applied starting with the FY 2026 calculation. 4 This act would take effect upon passage. 5 ======== LC000722 ========