The "Rhode Island Education Funding and Accountability Act" establishes a comprehensive and transparent funding formula for public education in Rhode Island, aimed at ensuring equitable distribution of state and local resources based on instructional needs. The act outlines several key purposes, including the establishment of a student-centered funding formula, equitable resource distribution, proportional municipal contributions based on fiscal capacity, and the requirement for fiscal responsibility and strategic management of education funds to enhance student outcomes statewide.

The act introduces a core education amount (CEA) as the baseline annual cost per student, calculated using regional average educational expenditures from Rhode Island and neighboring states, adjusted annually for inflation. Municipalities are required to contribute a minimum local contribution based on their ability to pay, with penalties for those that fail to meet this requirement. The act allows municipalities to allocate additional local funding beyond their minimum contributions and establishes a strategic education reserve fund to address unforeseen revenue shortfalls.

Furthermore, the legislation ensures that funds follow students to public charter schools and state-operated schools without deductions against state or local aid. It creates a fiscal responsibility advisory board to monitor compliance, provide technical assistance, and adjudicate hardship appeals. Each local education agency (LEA) is mandated to adopt a public plan linking spending to student outcome goals and report revenues and expenditures through a universal chart of accounts system.

The act emphasizes the importance of early childhood education by funding screening and special education services for children ages three to five and ensuring equitable access to housing aid for all LEAs. The provisions of this chapter will be phased in over a period not to exceed three fiscal years from the effective date, with full implementation required by fiscal year 2030. The act will take effect upon passage.