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HB 8157

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

2026 Regular Session Introduced by Jennifer Boylan and 3 co-sponsors

The bill refines how Rhode Island calculates the state share of education aid by weighting district wealth and high-need student concentration, includes charter data, and creates a

04/28/2026 Committee recommended measure be held for further study
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Bill Summary · HB 8157

Summary of HB 8157 (Rhode Island, 2026) – The Education Equity and Property Tax Relief Act

Purpose and intent

  • This bill amends the state’s method for determining the “state’s share” of foundation education aid to school districts.
  • The goal is to more closely align state aid with district revenue-generating capacity and the concentration of high-need students, while providing a mechanism to stabilize districts facing declines in state aid.

Key provisions

  1. New formula for the state’s share (Section 16-7.2-4)

    • For each district, the state share is calculated using a composite metric that weighs:
      • The district’s revenue-generating capacity, and
      • The district’s concentration of high-need students (poverty status).
    • Specifically, the calculation is:
      • Take the square root of the sum of:
      • The community state share ratio squared (per § 16-7-20), plus
      • The district’s PK-6 poverty percentage squared,
      • Then divide by two.
    • If the resulting state share ratio is less than the district’s community state share ratio, and the district’s poverty percentage exceeds 50%, then the district’s state share ratio is set to the community state share ratio.
    • The calculation also uses district student data that includes charter school and state school students.
  2. Inclusion of charter/state school data (Section 16-7.2-4(b))

    • For determining the state share, district student data used in the calculation must include charter school and state school students.
  3. Poverty loss stabilization fund (Section 16-7.2-4(c))

    • Establishes a fund to stabilize districts experiencing a decline in the state share ratio.
    • Trigger: A year-over-year decline in the state share ratio of more than 2.0%.
    • Benefit: The fund provides an amount equal to 75% (currently proposed as 75%; previous text mentions 50% then 75%) of the difference in the district’s permanent foundation education aid received in the prior year.
    • Note: TheExplanation text indicates an upgrade from 50% to 75%.
  4. Effective date (Section 2)

    • The act takes effect upon passage.

Affected entities

  • Rhode Island school districts (including those with charter and state schools).
  • Students in PK-6 poverty status (used as a factor in the formula).
  • Districts experiencing declines in state share, which may receive stabilization support from the new fund.

Procedural and timeline details

  • Introduced and referred to the House Finance Committee on February 27, 2026.
  • Committee action: In late April 2026, the committee recommended the measure be held for further study.
  • The act would take effect immediately upon passage.

Potential impact and considerations

  • The revised state-share calculation more prominently factors in a district’s poverty level, potentially increasing aid to districts with higher concentrations of high-need students, and possibly reducing aid for others depending on the composite outcome.
  • The poverty loss stabilization fund provides a cushion for districts that experience a notable drop in state support, reducing volatility in annual funding.
  • By including charter and state school data in the state-share determination, the bill broadens the data pool for aid calculations, which can affect districts differently based on charter enrollments.
  • The policy choice to adjust stabilization from 50% to 75% of the prior-year difference aims to provide stronger stabilization for affected districts.

If you’d like, I can provide a side-by-side comparison with the current law to illustrate specific numerical effects on particular districts.

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

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