The bill amends Section 16-7.2-3 of the General Laws under "The Education Equity and Property Tax Relief Act" to establish a permanent foundation education aid formula. This formula will calculate foundation education aid for each district based on a core instructional amount and additional support for high-need students. The core instructional amount will be derived from regional expenditure data and updated annually.

A significant provision of the bill is the inclusion of a student's enrollment in Medicaid in the calculations for the student success factor, which will begin with the FY 2026 calculation. The Department of Elementary and Secondary Education is required to utilize a student's enrollment in Medicaid in calculations related to the student success factor, the state share ratio, and the formulation of estimates.

The bill also mandates the Department of Elementary and Secondary Education to develop a poverty measure that accurately reflects the needs of students, without relying solely on school nutrition program participation. Additionally, the department is tasked with evaluating the number of multilingual learners and their funding needs, as well as reporting on local contributions to education aid. The act is set to take effect upon passage, aiming to enhance educational equity and support for high-need students in the state.

Statutes affected:
5751: 16-7.2-3