The bill amends Section 16-7.2-4 of the General Laws under "The Education Equity and Property Tax Relief Act" to update the calculation of the state's share of foundation education aid for school districts. The new language specifies that the calculation will consider both a district's revenue-generating capacity and the concentration of high-need students, using a formula that incorporates the square root of the sum of the state share ratio and the percentage of students in poverty. Additionally, it mandates that student data for this calculation must include charter and state school students.

Furthermore, the bill introduces a change to the poverty loss stabilization fund, which supports districts experiencing a significant decline in their state share ratio. The previous provision that set this fund at fifty percent (50%) of the difference in permanent foundation education aid received in the prior year has been increased to seventy-five percent (75%). This amendment aims to provide greater financial stability to districts facing challenges due to fluctuations in their state share ratios. The act will take effect upon passage.

Statutes affected:
5749: 16-7.2-4