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Bill

SB 2821

AN ACT RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX RELIEF ACT

2026 Regular Session Introduced by Jonathon Acosta and 7 co-sponsors

Rhode Island would review and potentially revise the permanent foundation education aid formula to better fund high-need students, including poverty and multilingual learners.

05/15/2026 Scheduled for hearing and/or consideration (05/19/2026)
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Bill Summary · SB 2821

Overview

  • Bill: SB 2821 (Education Equity and Property Tax Relief Act)
  • Jurisdiction: Rhode Island
  • Session Introduced: 2026 (Introduced March 4, 2026)
  • Committee: Senate Finance
  • Sponsors: Senators Murray, Thompson, Ciccone, Urso, Acosta, Pearson, Gallo, Zurier (with multiple co-sponsors)

  • Effective date: Upon passage

  • Purpose: To review and potentially adjust the components of Rhode Island’s permanent foundation education aid formula, with emphasis on high-need student funding and clarity around poverty and multilingual learner (MLL) considerations. The bill directs the Department of Elementary and Secondary Education (DESE) to evaluate whether current weights and measures adequately fund instructional needs and to develop alternative approaches for identifying and funding high-need students, including those who are multilingual learners or living in poverty.

Main Purpose and Intent

  • To ensure the foundation education aid formula fairly and effectively funds districts’ instructional needs, particularly for high-need students.
  • To require DESE to conduct a formal review of the high-need student portion of the formula and report findings and recommendations to the General Assembly.
  • To explore potential changes in how poverty and multilingual learner status are identified and incorporated into funding calculations.

Key Provisions and Changes

  • Section 16-7.2-3 (Permanent foundation education aid established) remains the framework for calculating foundation aid, but several elements are subject to review and potential modification:

    • Core instruction amount (a)(1): Based on a per-pupil amount derived from regional expenditure data and NCES datasets; updated annually. Excludes charter/state-operated school pupil counts for resident ADM.
    • High-need student funding (a)(2): 40% “student success factor” applied to the core per-pupil amount for residents whose family income is at or below 185% of the federal poverty guidelines.
    • DESE must develop and use a poverty measure that better proxies poverty status (not relying on school nutrition program participation). Beginning with FY2024 calculations, income status will be determined via SNAP participation with a multiplier of 1.6 for directly certified students.
    • Multilingual learners (MLL) factor: 20% of the core per-pupil amount applied to resident students identified in the three lowest proficiency levels per WIDA standards. Local districts must report annually on MLL funding usage by September 1.
    • Additional requirements and reporting:
    • DESE must provide annual foundation aid cost estimates with latest data and enrollment growth/decline adjustments.
    • October 1 ADM data: DESE must update figures by December 1.
    • Allow district set-asides: Districts may reserve part of funds to expand learning opportunities (after-school, summer programs, full-day kindergarten, etc.) while ensuring core and required programs are funded.
    • Regulatory authority: DESE to promulgate necessary regulations to implement the act.
  • Subsections (f) outline a phased, multi-year set of DESE reporting and analysis tasks:

    • 2023-2025: Evaluate MLL counts by district and poverty-based eligibility, with segmentation by proficiency levels using WIDA; develop expense data to inform funding levels; consider including MLL needs within the core formula via weights or categorical funding.
    • 2024-2026: Develop alternative poverty identification methods using state-administered programs (e.g., SNAP, RIteCare) and prepare recommendations.
    • 2025-2027: Report on local contributions versus state aid; coordinate with the longitudinal data system to improve data matching for funding calculations; assess Medicaid direct certification expansion and its integration into poverty determinations.
    • 2025-12-31: DESE to report on processes to ensure consistency and validity of high-cost special education data.
    • 2026: DESE to review whether the 40% student success factor adequately funds instructional needs and report findings to the Governor and General Assembly.
  • Section 2: Act takes effect upon passage.

Who Would Be Affected

  • Local education agencies (LEAs) and school districts:

    • Funding calculations for foundation aid could change based on revised poverty and MLL measures.
    • Potentially greater or redistributed aid to districts serving higher concentrations of low-income or MLL students.
    • Ability to set aside a portion of aid for enrichment and expanded learning opportunities (e.g., after-school, summer programs, full-day kindergarten) while maintaining mandated program funding.
  • DESE:

    • Responsible for implementing, evaluating, and reporting on the foundation aid formula, poverty measures, MLL weighting, and data-matching processes.
    • Must develop regulations and provide regular budget and impact analyses.
  • Students:

    • Those in poverty and/or identified as multilingual learners may see different proportions of funding directed toward services and supports.
    • The aim is to better align resources with instructional needs to improve outcomes.

Procedural and Timeline Highlights

  • Ongoing: Core formula components established and annually updated (core instruction amount; MLL and poverty-related adjustments).
  • 2023-2025: DESE to evaluate MLL and poverty measures; report by October 1, 2026 on whether the 40% student success factor remains appropriate.
  • 2024-2026: Develop alternative poverty identification methods and expand direct certification considerations; report on local contributions and data-matching improvements.
  • 2025-12-31: Report on high-cost special education data processes.
  • 2026: Final assessment of the adequacy of the 40% student success factor.
  • Effective date: Upon passage (retroactive immediacy to adjust ongoing budgeting processes as needed).

Potential Impacts

  • Accountability and transparency: Requires regular reporting and data improvements to ensure funding reflects student needs.
  • Policy flexibility: Allows adjustments to how poverty and MLL status are identified and funded, potentially leading to changes in district-level allocations.
  • Resource optimization: Encourages using set-asides for enrichment while preserving core program funding.
  • Data integration: Promotes better alignment of state human-service participation data with educational funding data to improve accuracy.

Compiled from official sources — confirm details with the bill’s official record.

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