AN ACT RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX RELIEF ACT (Amends the determination of the state's share statute by amending the calculation for the poverty loss stabilization fund.)

H8157

2026 -- H 8157
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LC005710
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX
RELIEF ACT

Introduced By:
Representatives Caldwell, Knight, Boylan, and Shanley

Date Introduced:
February 27, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 16-7.2-4 of the General Laws in Chapter 16-7.2 entitled "The
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Education Equity and Property Tax Relief Act" is hereby amended to read as follows:
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16-7.2-4. Determination of state’s share.
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(a) For each district, the state’s share of the foundation education aid calculated pursuant
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to § 16-7.2-3(a) shall use a calculation that considers a district’s revenue-generating capacity and
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concentration of high-need students. The calculation is the square root of the sum of the state share
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ratio for the community calculation, pursuant to § 16-7-20, squared plus the district’s percentage
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of students in grades PK-6 in poverty status squared, divided by two.
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If this calculation results in a state share ratio that is less than the state share ratio for the
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community calculated pursuant to § 16-7-20(a) and that district’s poverty status percentage as
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defined in § 16-7.2-3(a)(2) is greater than fifty percent (50%), the state share ratio shall be equal to
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the state share ratio for the community calculated pursuant to § 16-7-20(a).
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(b) For purposes of determining the state’s share, school district student data used in this
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calculation shall include charter school and state school students. These ratios are used in the
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permanent foundation education aid formula calculation described in § 16-7.2-5.
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(c) There shall be a poverty loss stabilization fund for districts that experience a decline in
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the state share ratio calculated pursuant to subsection (a) of this section from the prior year of more
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than 2.0 percent (2%). The amount shall be equal to
fifty percent (50%)

seventy-five percent (75%)

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of the difference in the amount of permanent foundation education aid received pursuant to § 16-
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7.2-3 received in the prior year.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX
RELIEF ACT
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This act would amend the determination of the state's share statute by amending the
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calculation for the poverty loss stabilization fund from fifty percent (50%) to seventy five percent
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(75%).
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This act would take effect upon passage.
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