Rhode Island Gets School Funding Formula

Last Updated: June 25, 2010

This article appeared in the June 2010 Rural Policy Matters.

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State legislators have passed a school funding formula for Rhode Island, which had been the only state without one. The formula is partially based on a district’s ability to raise taxes, and it includes an additional 40% weight for each child in poverty. Because of shortfalls, this year’s budget must be revenue-neutral, but the new formula will phase in over a 10-year period.

As a result of the plan, Rhode Island’s state share of school funding will increase from its current low 37% to 52.5% over the ten-year period. The formula also eliminates financial incentives for district consolidation.

Under the formula, 70% of Rhode Island students will receive more state aid.

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Read more from the June 2010 Rural Policy Matters.