AN ACT RELATING TO EDUCATION -- FOUNDATION LEVEL SCHOOL SUPPORT (Prohibits participation in federal school voucher tax credit for contributions to scholarship-granting organizations unless both the general assembly and the governor approve such participation.)

S2139

2026 -- S 2139
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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 -- FOUNDATION LEVEL SCHOOL SUPPORT

Introduced By:
Senators Bell, Ciccone, Gallo, Murray, Appollonio, Urso, Bissaillon,
Thompson, Burke, and Gu

Date Introduced:
January 16, 2026

Referred To:
Senate Judiciary
It is enacted by the General Assembly as follows:
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SECTION 1. Section 16-7-23 of the General Laws in Chapter 16-7 entitled "Foundation
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Level School Support [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]" is
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hereby amended to read as follows:
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16-7-23. Community requirements — Adequate minimum budget provision.
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(a) The school committee’s budget provisions of each community for current expenditures
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in each budget year shall provide for an amount from all sources sufficient to support the basic
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program and all other approved programs shared by the state. Each community shall contribute
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local funds to its school committee in an amount not less than its local contribution for schools in
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the previous fiscal year except to the extent permitted by §§ 16-7-23.1 and 16-7-23.2. Provided,
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that for the fiscal years 2010 and 2011 each community shall contribute to its school committee in
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an amount not less than ninety-five percent (95.0%) of its local contribution for schools for the
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fiscal year 2009. Calculation of the annual local contribution shall not include Medicaid revenues
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received by the municipality or district pursuant to chapter 8 of title 40. A community that has a
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decrease in enrollment may compute maintenance of effort on a per-pupil rather than on an
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aggregate basis when determining its local contribution; furthermore, a community that experiences
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a nonrecurring expenditure for its schools may deduct the nonrecurring expenditure in computing
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its maintenance of effort. The deduction of nonrecurring expenditures shall be with the approval of
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the commissioner. Provided, however, that notwithstanding any provision of this title to the
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contrary, debt service that is no longer carried on the books of any school district shall not be

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included in any school district’s annual budget, nor shall nonrecurring debt service be included in
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maintenance of effort as set forth in this chapter, nor shall any nonrecurring debt service be included
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in the operating budget of any school district. For the purposes set forth above, nonrecurring capital
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lease payments shall be considered nonrecurring debt service. The courts of this state shall enforce
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this section by means of injunctive relief.
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(b) Districts’ annual maintenance expenditures must meet the requirements of subsection
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(b)(1), (b)(2), or (b)(3) of this section.
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(1) A minimum of three percent (3%) of the operating budget shall be dedicated exclusively
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for maintenance expenditures as defined in § 16-7-36(7) provided that for FY 2019, that amount
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shall be one percent (1%), for FY 2020, that amount shall be one and one-half percent (1.5%), for
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FY 2021 that amount shall be two percent (2%), and for FY 2022 that amount shall be two and
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one-half percent (2.5%).
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(2) A minimum of three percent (3%) of the replacement value shall be dedicated
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exclusively for maintenance expenditures as defined in § 16-7-36(7) provided that for FY 2019,
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that amount shall be one percent (1%), for FY 2020 that amount shall be one and one-half percent
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(1.5%), for FY 2021 that amount shall be two percent (2%), and for FY 2022 that amount shall be
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two and one-half percent (2.5%).
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(3) A minimum of three dollars ($3.00), subject to inflation, per square foot of building
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space shall be dedicated exclusively for maintenance expenditures as defined in § 16-7-36(7).
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(c) The department of elementary and secondary education shall be responsible for
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establishing a reporting mechanism to ensure the intent of this section is being met. In the event
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that a district does not meet its minimum expenditure requirement in a given year, the state shall
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direct state housing aid paid pursuant to § 16-7-41 or § 16-105-5, in an amount equal to the shortfall,
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to a restricted fund created by the district and dedicated solely to meeting maintenance
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requirements.
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(d) Whenever any state funds are appropriated for educational purposes, the funds shall be
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used for educational purposes only and all state funds appropriated for educational purposes must
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be used to supplement any and all money allocated by a city or town for educational purposes and,
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in no event, shall state funds be used to supplant, directly or indirectly, any money allocated by a
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city or town for educational purposes. All state funds shall be appropriated by the municipality to
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the school committee for educational purposes in the same fiscal year in which they are
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appropriated at the state level even if the municipality has already adopted a school budget. All
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state and local funds unexpended by the end of the fiscal year of appropriation shall remain a
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surplus of the school committee and shall not revert to the municipality. Any surplus of state or

LC003448 - Page 2 of 4
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local funds appropriated for educational purposes shall not in any respect affect the requirement
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that each community contribute local funds in an amount not less than its local contribution for
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schools in the previous fiscal year, subject to subsection (a) of this section, and shall not in any
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event be deducted from the amount of the local appropriation required to meet the maintenance of
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effort provision in any given year.
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(e) The State of Rhode Island shall only opt in to the federal school voucher tax credit for
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contributions to scholarship-granting organizations established in Pub. L. 119-21, 139 Stat. 72, §
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70411 (2025) if the general assembly and the governor both approve such an opt in. The governor
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may not opt in nor transmit a list of scholarship granting organizations for this program unless the
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general assembly has passed a bill that has been signed by the governor which authorizes this
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participation.
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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 -- FOUNDATION LEVEL SCHOOL SUPPORT
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This act would prohibit participation in the federal school voucher tax credit for
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contributions to scholarship-granting organizations unless both the general assembly and the
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governor approve such participation.
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This act would take effect upon passage.
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