Foundation formulas are used by states for two purposes: to calculate how much the education of children costs and to determine how to share those costs between state and local governments. These formulas can have different calculations for determining the local share. The state supplements the local share to reach the total cost of the foundation program. This paper looks at the local share calculation of the current Rhode Island formula and at the calculations of two other types of foundation formulas. Which formula is easiest to understand? Which one is fairest to the taxpayer?
The complete paper together with six tables