AN ACT RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX RELIEF ACT (Ensures that transportation categorical funds between the state and regional school districts would be fully funded.)

H7681

2026 -- H 7681
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LC005135
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX
RELIEF ACT

Introduced By:
Representatives Cotter, Spears, Chippendale, Speakman, McGaw,
Kennedy, Kazarian, Roberts, and Tanzi

Date Introduced:
February 11, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 16-7.2-6 of the General Laws in Chapter 16-7.2 entitled "The
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Education Equity and Property Tax Relief Act" is hereby amended to read as follows:
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16-7.2-6. Categorical programs, state funded expenses.
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In addition to the foundation education aid provided pursuant to § 16-7.2-3, the permanent
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foundation education-aid program shall provide direct state funding for:
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(a) Excess costs associated with special education students. Excess costs are defined when
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an individual special education student’s cost shall be deemed to be “extraordinary.” Extraordinary
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costs are those educational costs that exceed the state-approved threshold based on an amount
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above four times the core foundation amount (total of core instruction amount plus student success
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amount). The department of elementary and secondary education shall prorate the funds available
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for distribution among those eligible school districts if the total approved costs for which school
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districts are seeking reimbursement exceed the amount of funding appropriated in any fiscal year;
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and the department of elementary and secondary education shall also collect data on those
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educational costs that exceed the state-approved threshold based on an amount above two (2), three
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(3), and five (5) times the core foundation amount;
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(b) Career and technical education costs to help meet initial investment requirements
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needed to transform existing, or create new, comprehensive, career and technical education
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programs and career pathways in critical and emerging industries and to help offset the higher-

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than-average costs associated with facilities, equipment maintenance and repair, and supplies
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necessary for maintaining the quality of highly specialized programs that are a priority for the state.
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The department shall develop criteria for the purpose of allocating any and all career and technical
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education funds as may be determined by the general assembly on an annual basis. The department
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of elementary and secondary education shall prorate the funds available for distribution among
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those eligible school districts if the total approved costs for which school districts are seeking
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reimbursement exceed the amount of funding available in any fiscal year;
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(c) Programs to increase access to voluntary, free, high-quality pre-kindergarten programs.
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The department shall recommend criteria for the purpose of allocating any and all early childhood
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program funds as may be determined by the general assembly;
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(d) Central Falls, Davies, and the Met Center Stabilization Fund is established to ensure
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that appropriate funding is available to support their students. Additional support for Central Falls
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is needed due to concerns regarding the city’s capacity to meet the local share of education costs.
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This fund requires that education aid calculated pursuant to § 16-7.2-3 and funding for costs outside
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the permanent foundation education-aid formula, including, but not limited to, transportation,
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facility maintenance, and retiree health benefits shall be shared between the state and the city of
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Central Falls. The fund shall be annually reviewed to determine the amount of the state and city
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appropriation. The state’s share of this fund may be supported through a reallocation of current
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state appropriations to the Central Falls school district. At the end of the transition period defined
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in § 16-7.2-7, the municipality will continue its contribution pursuant to § 16-7-24. Additional
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support for the Davies and the Met Center is needed due to the costs associated with running a
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stand-alone high school offering both academic and career and technical coursework. The
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department shall recommend criteria for the purpose of allocating any and all stabilization funds as
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may be determined by the general assembly;
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(e) Excess costs associated with transporting students to out-of-district non-public schools.
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This fund will provide state funding for the costs associated with transporting students to out-of-
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district non-public schools, pursuant to chapter 21.1 of this title. The state will assume the costs of
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non-public out-of-district transportation for those districts participating in the statewide system.
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The department of elementary and secondary education shall prorate the funds available for
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distribution among those eligible school districts if the total approved costs for which school
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districts are seeking reimbursement exceed the amount of funding available in any fiscal year
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provided, effective with the fiscal year 2027 budget, the general assembly shall ensure that
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transportation categorical funds between the state and regional school districts shall be fully funded
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in an amount equal to what is both intended and provided for under this subsection, in order to

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ensure that the interests of regional school districts are protected and also to advance the education
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mission of regional school districts
;
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(f) Excess costs associated with transporting students within regional school districts. This
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fund will provide direct state funding for the excess costs associated with transporting students
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within regional school districts, established pursuant to chapter 3 of this title. This fund requires
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that the state and regional school district share equally the student transportation costs net any
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federal sources of revenue for these expenditures. The department of elementary and secondary
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education shall prorate the funds available for distribution among those eligible school districts if
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the total approved costs for which school districts are seeking reimbursement exceed the amount
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of funding available in any fiscal year;
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(g) Public school districts that are regionalized shall be eligible for a regionalization bonus
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as set forth below:
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(1) As used herein, the term “regionalized” shall be deemed to refer to a regional school
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district established under the provisions of chapter 3 of this title, including the Chariho Regional
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School district;
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(2) For those districts that are regionalized as of July 1, 2010, the regionalization bonus
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shall commence in FY 2012. For those districts that regionalize after July 1, 2010, the
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regionalization bonus shall commence in the first fiscal year following the establishment of a
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regionalized school district as set forth in chapter 3 of this title, including the Chariho Regional
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School District;
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(3) The regionalization bonus in the first fiscal year shall be two percent (2.0%) of the
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state’s share of the foundation education aid for the regionalized district as calculated pursuant to
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§§ 16-7.2-3 and 16-7.2-4 in that fiscal year;
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(4) The regionalization bonus in the second fiscal year shall be one percent (1.0%) of the
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state’s share of the foundation education aid for the regionalized district as calculated pursuant to
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§§ 16-7.2-3 and 16-7.2-4 in that fiscal year;
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(5) The regionalization bonus shall cease in the third fiscal year;
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(6) The regionalization bonus for the Chariho regional school district shall be applied to
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the state share of the permanent foundation education aid for the member towns; and
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(7) The department of elementary and secondary education shall prorate the funds available
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for distribution among those eligible regionalized school districts if the total, approved costs for
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which regionalized school districts are seeking a regionalization bonus exceed the amount of
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funding appropriated in any fiscal year;
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(h) [Deleted by P.L. 2024, ch. 117, art. 8, § 1.]

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(i) State support for school resource officers. For purposes of this subsection, a school
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resource officer (SRO) shall be defined as a career law enforcement officer with sworn authority
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who is deployed by an employing police department or agency in a community-oriented policing
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assignment to work in collaboration with one or more schools. School resource officers should have
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completed at least forty (40) hours of specialized training in school policing, administered by an
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accredited agency, before being assigned. Beginning in FY 2019, for a period of three (3) years,
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school districts or municipalities that choose to employ school resource officers shall receive direct
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state support for costs associated with employing such officers at public middle and high schools.
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Districts or municipalities shall be reimbursed an amount equal to one-half (½) of the cost of
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salaries and benefits for the qualifying positions. Funding will be provided for school resource
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officer positions established on or after July 1, 2018, provided that:
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(1) Each school resource officer shall be assigned to one school:
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(i) Schools with enrollments below one thousand two hundred (1,200) students shall
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require one school resource officer;
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(ii) Schools with enrollments of one thousand two hundred (1,200) or more students shall
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require two school resource officers;
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(2) School resource officers hired in excess of the requirement noted above shall not be
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eligible for reimbursement; and
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(3) Schools that eliminate existing school resource officer positions and create new
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positions under this provision shall not be eligible for reimbursement; and
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(j) Categorical programs defined in subsections (a) through (g) shall be funded pursuant to
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the transition plan in § 16-7.2-7.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX
RELIEF ACT
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This act would provide that, effective with the fiscal year 2027 budget, the general
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assembly would ensure that transportation categorical funds between the state and regional school
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districts would be fully funded in order to ensure that the interests of regional school districts are
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protected and also to advance the education mission of regional school districts.
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This act would take effect upon passage.
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