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S 2819Special Education

Education - The Education Equity and Property Tax Relief Act

This bill ensures school districts receive full state reimbursement for special education and transportation costs, even if the state budget runs low.

Held for study
Population
Affected
35
Email Legislator
Introduced Mar 4, 2026Committee Senate Finance

Plain-English Summary

This legislation amends the "Education Equity and Property Tax Relief Act" regarding how the state reimburses school districts for specific high-cost items. Currently, if the total requests for reimbursement from school districts for high-cost special education, transportation to non-public schools, and regional district transportation exceed the state's budget, the state reduces (prorates) the payments to everyone. This bill deletes the language allowing for that reduction. Consequently, the state would be required to fully fund these specific costs for school districts, regardless of whether the total exceeds the initial appropriated amount.

For younger readers

Imagine you and your friends did chores to earn allowance money, but your parents only set aside a small jar of coins to pay you. If you all did a lot of chores and the jar ran out, your parents might pay you less than they promised. This bill changes the rules for schools. Before, if schools spent more money than the state expected on buses or helping students who need extra care, the state would pay them back less. Now, the state promises to pay the schools the full amount they are owed, no matter what.

Who & Where It Applies

Impacted groups
School DistrictsSpecial Education StudentsPrivate School StudentsTaxpayersRegional School Districts
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Ensures that school districts serving students with high-cost special education needs receive full financial support, preventing budget shortfalls that could harm vulnerable students and their families.
  • Strengthens the social safety net by guaranteeing state funding for essential transportation services, ensuring equitable access to education regardless of a specific district's wealth or tax base.
  • Stabilizes municipal budgets by removing the uncertainty of prorated payments, allowing communities to better allocate resources toward public services and community welfare without fear of sudden deficits.
  • Guarantees full state funding for transportation to private and parochial schools, which directs public tax dollars to support non-public educational institutions rather than investing solely in public schools.
  • Mandating full reimbursement for specific categories without a dedicated new revenue source could force cuts to other essential social services or general education aid if the state faces a deficit.
  • While it secures funding, the bill does not address the underlying systemic inequality of property-tax-based school funding, merely patching specific high-cost areas.
For Conservatives
  • Protects funding for transportation to non-public schools, thereby supporting school choice and the ability of families to select private or religious education options without bearing the full transportation burden.
  • Provides financial certainty to municipalities and regional districts, potentially reducing the pressure to raise local property taxes to cover budget gaps left by the state.
  • Enforces the principle that the government should honor its financial commitments to local districts rather than using administrative mechanisms to pay less than what was promised.
  • Removes a critical cost-control mechanism (proration), effectively creating an uncapped spending mandate that could lead to significant and unpredictable increases in state spending.
  • Increases the burden on state taxpayers by guaranteeing payments for high-cost programs without requiring offsetting cuts, efficiency improvements, or accountability in school districts.
  • Reduces the incentive for local school districts to manage special education and transportation costs efficiently, as they are guaranteed full reimbursement from the state regardless of the cost.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 1 addition · 13 deletions

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;

(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.