The "Rhode Island Education Funding and Accountability Act" establishes a comprehensive and transparent funding formula for public education in Rhode Island, focusing on student-centered approaches and equitable resource distribution based on instructional needs. The act introduces a "core education amount" (CEA), which represents the regional average annual cost per student, adjusted for inflation, and incorporates student weights and instructional program factors to account for varying educational costs.

The act emphasizes shared fiscal responsibility between the state and municipalities, detailing the calculation of state aid based on local contributions. Municipalities are required to contribute at least their minimum local contribution toward the education of all resident students, with penalties for those that fail to meet this requirement, resulting in a reduction of state aid by double the shortfall. Municipalities have discretion over the allocation of any local funding beyond their minimum contributions.

The act mandates timely quarterly payments of state aid to local education agencies (LEAs) and prohibits any deductions against state or local aid for public charter schools. It establishes a strategic education reserve fund to address unforeseen financial challenges, overseen by a fiscal responsibility advisory board. This board will monitor fiscal responsibility, adjudicate hardship appeals, and provide technical assistance to LEAs.

Additionally, the act includes a tiered system of support and intervention for LEAs based on fiscal management and student outcomes, with provisions for corrective action plans and potential state intervention for persistent noncompliance. The act is set to take effect upon passage, with full implementation anticipated by fiscal year 2030.