Rhode IslandH83512026 Regular SessionHouse

AN ACT RELATING TO EDUCATION -- THE RHODE ISLAND EDUCATION FUNDING AND ACCOUNTABILITY ACT .

Sponsored By: Joseph M. McNamara (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 8 benefits, 1 costs, 2 mixed.

State covers high special‑ed and pensions

The state pays very high special education costs above four times the statewide average per‑pupil spending. It also pays out‑of‑district transportation and required early childhood screenings. The CEA includes the normal yearly cost of teacher pensions, while the state covers unfunded teacher pension liabilities that accrued before July 1, 2025 for teachers retired by that date.

State-paid screenings and more pre‑K

The state pays for developmental screening and special education services for children ages 3 to 5. RIDE runs a universal screening system and funds its costs. The General Assembly funds Rhode Island pre‑K, and districts can apply for pre‑K grants.

Student-based funding and weights

Rhode Island now uses a clear, student-based formula to fund schools. Each year RIDE sets a Core Education Amount (CEA) using the regional average per‑pupil cost in RI, MA, CT, and NH and adjusts it by CPI‑U. Schools get more per student when needs are higher: 50% extra for students from households at or below 185% of the federal poverty level, tiered amounts for multilingual learners (60%, 40%, 20%, and 10% for two years after exit), added weights for students with disabilities based on IEP service levels, and an add‑on when CTE program costs exceed the CEA. RIDE counts students using ADM, applies an annual adjustment factor, and publishes its methods and data by March 1. RIDE also uses linked data and direct certification to identify economically disadvantaged students.

How state aid and town shares work

Each year the legislature sets the statewide state‑share percentage. A district’s state aid equals its total foundation cost minus the required minimum local contribution. RIDE sets a single local share rate by dividing the statewide local contribution by the state’s certified property value, then applies it to each town’s certified property value. A town’s per‑pupil minimum equals its minimum local contribution divided by its student count (ADM). This ties local obligations to property wealth while keeping a clear formula for state aid.

On-time school payments; funds follow students

RIDE issues preliminary state‑aid estimates by March 1 and final amounts by July 1 after the budget. State and local payments are made quarterly in July, October, January, and April. Towns and districts cannot hold back or deduct money owed for students in public charter or state schools. Funding follows each student based on that student’s calculated foundation cost.

Fair school building aid for charters

Charter, mayoral academy, and state‑run schools get school housing aid at the same rate as the towns where their students live. Schools drawing students from many towns get a blended rate. The state cannot reduce any district’s current housing aid to fund others.

New fiscal oversight and help for districts

An 11‑member fiscal board in the Auditor General’s office oversees school finances. It manages a Strategic Education Reserve funded at 1% of the statewide foundation cost and hears one‑year hardship appeals for towns and districts facing extraordinary, unforeseeable events. The board places districts in tiers: Tier 1 gets help, Tier 2 makes a corrective plan approved by RIDE and the board, and Tier 3 can face directed fiscal management or conditional spending. Plans are public and reviewed each quarter.

No unfunded mandates on schools or towns

Any new law or rule that adds requirements for districts or towns must include a cost estimate from RIDE and the Department of Administration. It cannot take effect or remain in effect without a specific state appropriation to pay the estimated cost.

Transparent school spending and public dashboard

Each district must adopt a public plan tying spending to student goals, report finances using the universal chart of accounts, and get an independent audit. RIDE posts a yearly report by September 1 showing each town’s required and actual local contributions. A public dashboard shows spending, student weights, and outcomes by district and school. A transition fund helps districts move to the common accounting system. RIDE issues rules with the advisory board, and the chapter’s rules control when other laws conflict.

Penalties if towns underfund schools

If a town pays less than its minimum local contribution, the state cuts that town’s aid by twice the shortfall. The town may appeal under the hardship process, but relief lasts only one year without reapplication.

Phased rollout through FY2030

The law takes effect upon passage. Full implementation must occur by fiscal year 2030. RIDE can phase in changes over up to three fiscal years, with a transition plan that adjusts state and local shares. Existing aid continues during the transition to avoid funding shortfalls, and parts may start earlier if ready and funded.

Sponsors & Cosponsors

Sponsor

Joseph M. McNamara
Democratic • House

Cosponsors

Mia A. Ackerman
Democratic • House
Edith H. Ajello
Democratic • House
Terri Cortvriend
Democratic • House
Jenni A. Furtado
Democratic • House
Jon D. Brien
Independent • House
Rebecca M. Kislak
Democratic • House
Robert D. Phillips
Democratic • House
Enrique Sanchez
Democratic • House
Teresa A. Tanzi
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 127 • No: 7

House vote • 6/11/2026

COMM. EDUCATION FUNDING FORMULA PASSAGE AS AMENDED

Yes: 64 • No: 7