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H 7681Funding & Budget

Education - The Education Equity and Property Tax Relief Act

Starting in FY 2027, the state must fully fund transportation costs for regional school districts sending students to non-public schools.

Held for study
Population
Affected
15
Email Legislator
Introduced Feb 11, 2026Committee House Finance

Plain-English Summary

This legislation amends the "Education Equity and Property Tax Relief Act" regarding state funding for school transportation. Specifically, it mandates that starting with the fiscal year 2027 budget, the state must fully fund the transportation costs for regional school districts that transport students to out-of-district non-public schools. Currently, if the state receives more requests for reimbursement than it has money for, it pays a reduced (prorated) amount. This bill ensures that regional school districts will receive 100% of the intended funding for these specific transportation costs, protecting them from funding shortfalls.

For younger readers

In Rhode Island, the state helps pay for school buses. Sometimes, students who live in a group of towns called a "regional school district" go to private schools outside of their neighborhood. The state is supposed to help pay for their bus rides. Right now, if the state runs low on money, they pay less than they promised. This new law says that starting in the year 2027, the state promises to pay the full cost for these specific bus rides so the local schools don't lose money.

Who & Where It Applies

Impacted groups
Regional school districts, Students attending non-public schools, Taxpayers, Department of Elementary and Secondary Education, School Committees
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Protects local public school budgets in regional districts from being depleted by the cost of underfunded state mandates regarding non-public school transportation.
  • Ensures that the state government takes financial responsibility for its own requirements rather than shifting the fiscal burden onto local communities and property taxes.
  • Provides financial stability and predictability for regional school districts, allowing them to better plan their budgets for public education services.
  • Guarantees the use of public tax dollars to support the infrastructure and accessibility of private and religious schools, diverting potential resources from public classrooms.
  • Creates an inequity by prioritizing full funding for non-public transportation in regional districts while other critical public school needs may remain underfunded or prorated.
  • Entrenches a system that facilitates opting out of the public education system rather than focusing all fiscal efforts on strengthening public schools for all children.
For Conservatives
  • Supports school choice by ensuring that the transportation logistics required for students to attend non-public schools are fully funded and reliable.
  • Protects local property owners in regional districts from tax hikes that would otherwise be needed to cover the gap left by the state's underfunding.
  • Enforces government accountability by requiring the state to fully pay for the mandates it imposes on local districts, rather than passing the buck.
  • Increases mandatory state government spending, potentially leading to a larger overall state budget and higher tax burdens for residents.
  • Removes fiscal flexibility from future legislatures by locking in mandatory funding levels regardless of the state's economic condition or revenue revenue.
  • Expands the state's financial involvement in local affairs rather than encouraging local districts to find cost-effective, market-based solutions for transportation.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 6 additions

SECTION 1. Section 16-7.2-6 of the General Laws in Chapter 16-7.2 entitled "The Education Equity and Property Tax Relief Act" is hereby amended to read as follows: 16-7.2-6. Categorical programs, state funded expenses. In addition to the foundation education aid provided pursuant to § 16-7.2-3, the permanent foundation education-aid program shall provide direct state funding for:

(a) Excess costs associated with special education students. Excess costs are defined when an individual special education student’s cost shall be deemed to be “extraordinary.” Extraordinary costs are those educational costs that exceed the state-approved threshold based on an amount above four times the core foundation amount (total of core instruction amount plus student success amount). The department of elementary and secondary education shall prorate the funds available for distribution among those eligible school districts if the total approved costs for which school districts are seeking reimbursement exceed the amount of funding appropriated in any fiscal year; and the department of elementary and secondary education shall also collect data on those educational costs that exceed the state-approved threshold based on an amount above two (2), three (3), and five (5) times the core foundation amount;

(b) Career and technical education costs to help meet initial investment requirements needed to transform existing, or create new, comprehensive, career and technical education programs and career pathways in critical and emerging industries and to help offset the higher- than-average costs associated with facilities, equipment maintenance and repair, and supplies necessary for maintaining the quality of highly specialized programs that are a priority for the state. The department shall develop criteria for the purpose of allocating any and all career and technical education funds as may be determined by the general assembly on an annual basis. The department of elementary and secondary education shall prorate the funds available for distribution among those eligible school districts if the total approved costs for which school districts are seeking reimbursement exceed the amount of funding available in any fiscal year;

(c) Programs to increase access to voluntary, free, high-quality pre-kindergarten programs. The department shall recommend criteria for the purpose of allocating any and all early childhood program funds as may be determined by the general assembly;

(d) Central Falls, Davies, and the Met Center Stabilization Fund is established to ensure that appropriate funding is available to support their students. Additional support for Central Falls is needed due to concerns regarding the city’s capacity to meet the local share of education costs. This fund requires that education aid calculated pursuant to § 16-7.2-3 and funding for costs outside the permanent foundation education-aid formula, including, but not limited to, transportation, facility maintenance, and retiree health benefits shall be shared between the state and the city of Central Falls. The fund shall be annually reviewed to determine the amount of the state and city appropriation. The state’s share of this fund may be supported through a reallocation of current state appropriations to the Central Falls school district. At the end of the transition period defined in § 16-7.2-7, the municipality will continue its contribution pursuant to § 16-7-24. Additional support for the Davies and the Met Center is needed due to the costs associated with running a stand-alone high school offering both academic and career and technical coursework. The department shall recommend criteria for the purpose of allocating any and all stabilization funds as may be determined by the general assembly;

(e) Excess costs associated with transporting students to out-of-district non-public schools. This fund will provide state funding for the costs associated with transporting students to out-of- district non-public schools, pursuant to chapter 21.1 of this title. The state will assume the costs of non-public out-of-district transportation for those districts participating in the statewide system. The department of elementary and secondary education shall prorate the funds available for distribution among those eligible school districts if the total approved costs for which school districts are seeking reimbursement exceed the amount of funding available in any fiscal year provided, effective with the fiscal year 2027 budget, the general assembly shall ensure that transportation categorical funds between the state and regional school districts shall be fully funded in an amount equal to what is both intended and provided for under this subsection, in order to ensure that the interests of regional school districts are protected and also to advance the education mission of regional school districts;

(f) Excess costs associated with transporting students within regional school districts. This fund will provide direct state funding for the excess costs associated with transporting students within regional school districts, established pursuant to chapter 3 of this title. This fund requires that the state and regional school district share equally the student transportation costs net any federal sources of revenue for these expenditures. The department of elementary and secondary education shall prorate the funds available for distribution among those eligible school districts if the total approved costs for which school districts are seeking reimbursement exceed the amount of funding available in any fiscal year;

(g) Public school districts that are regionalized shall be eligible for a regionalization bonus as set forth below:

(1) As used herein, the term “regionalized” shall be deemed to refer to a regional school district established under the provisions of chapter 3 of this title, including the Chariho Regional School district;

(2) For those districts that are regionalized as of July 1, 2010, the regionalization bonus shall commence in FY 2012. For those districts that regionalize after July 1, 2010, the regionalization bonus shall commence in the first fiscal year following the establishment of a regionalized school district as set forth in chapter 3 of this title, including the Chariho Regional School District;

(3) The regionalization bonus in the first fiscal year shall be two percent (2.0%) of the state’s share of the foundation education aid for the regionalized district as calculated pursuant to §§ 16-7.2-3 and 16-7.2-4 in that fiscal year;

(4) The regionalization bonus in the second fiscal year shall be one percent (1.0%) of the state’s share of the foundation education aid for the regionalized district as calculated pursuant to §§ 16-7.2-3 and 16-7.2-4 in that fiscal year;

(5) The regionalization bonus shall cease in the third fiscal year;

(6) The regionalization bonus for the Chariho regional school district shall be applied to the state share of the permanent foundation education aid for the member towns; and

(7) The department of elementary and secondary education shall prorate the funds available for distribution among those eligible regionalized school districts if the total, approved costs for which regionalized school districts are seeking a regionalization bonus exceed the amount of funding appropriated in any fiscal year;

(h) [Deleted by P.L. 2024, ch. 117, art. 8, § 1.]

(i) State support for school resource officers. For purposes of this subsection, a school resource officer (SRO) shall be defined as a career law enforcement officer with sworn authority who is deployed by an employing police department or agency in a community-oriented policing assignment to work in collaboration with one or more schools. School resource officers should have completed at least forty (40) hours of specialized training in school policing, administered by an accredited agency, before being assigned. Beginning in FY 2019, for a period of three (3) years, school districts or municipalities that choose to employ school resource officers shall receive direct state support for costs associated with employing such officers at public middle and high schools. Districts or municipalities shall be reimbursed an amount equal to one-half (½) of the cost of salaries and benefits for the qualifying positions. Funding will be provided for school resource officer positions established on or after July 1, 2018, provided that:

(1) Each school resource officer shall be assigned to one school:

(i) Schools with enrollments below one thousand two hundred (1,200) students shall require one school resource officer;

(ii) Schools with enrollments of one thousand two hundred (1,200) or more students shall require two school resource officers;

(2) School resource officers hired in excess of the requirement noted above shall not be eligible for reimbursement; and

(3) Schools that eliminate existing school resource officer positions and create new positions under this provision shall not be eligible for reimbursement; and

(j) Categorical programs defined in subsections (a) through (g) shall be funded pursuant to the transition plan in § 16-7.2-7.

SECTION 2. This act shall take effect upon passage.