AN ACT RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX RELIEF ACT

2026 Regular Session Introduced by Bob Britto and 9 co-sponsors

Rhode Island districts may opt out, starting 2027, of funding unfunded state mandates, with no penalty or aid loss, by filing notice of saved amounts with DESE.

05/19/2026 Committee recommended measure be held for further study

Summary of SB 2239 (Session 2026) – Education Equity and Property Tax Relief Act (Rhode Island)

Purpose and intent

Create a framework that allows school districts to opt out of spending on state-mandated requirements that are not fully funded by state aid.

The overarching goal is to protect local budgets from unfunded mandates and provide property tax relief by limiting district expenditures required by mandates lacking full funding.

Key provisions and changes

Eligibility to opt out

Effective July 1, 2027, each school district may elect to not spend money on any mandate that is not fully funded by state funding (including the foundation education aid formula) or other state funds distributed through the Department of Elementary and Secondary Education (DESE).

Definition of mandate

“Mandate” means any rule, regulation, or policy imposed by DESE that requires a district to take or refrain from an action and for which the district must expend funds, with no corresponding funded source provided by the state.

Administrative process for opting out

A district that chooses not to fund a mandate must file a written notice with DESE certifying:
The specific mandate being not funded.
The total dollar amount saved by not funding the mandate.
The notice must be filed on or before August 31 of the fiscal year in which the district plans to act under this section.
The policy requires the district to provide such notice in any year in which the district contemplates acting under this section.

Protections for districts

Districts that elect to opt out of funding unfunded mandates shall not be penalized or have state aid reduced as a consequence of this action.

Effective date

The act is effective upon passage.

Legislative references

Amends Chapter 16-7.2 of the Rhode Island General Laws (The Education Equity and Property Tax Relief Act).

Who/what is affected

Affected entities: Rhode Island public school districts.

Impacted area: Mandates imposed by DESE that are unfunded or not fully funded by state resources through the DESE funding framework.

Implications for taxpayers: Potential reduction in ongoing district expenditures tied to unfunded mandates could translate into property tax relief or reallocation of funds within districts (subject to local budgeting decisions and state aid rules).

Procedural and timeline aspects

Availability to opt out: Beginning July 1, 2027.

Notice deadline: August 31 of the fiscal year in which a district intends to opt out.

Post-notice consequence: No penalty or reduction in state aid for choosing not to fund unfunded mandates.

Interim status: The act provides a discrete mechanism, via written notice, to opt out; otherwise, districts continue to operate under existing mandates and funding structures.

Observations

The bill emphasizes fiscal relief by allowing districts to avoid spending on unfunded mandates, potentially freeing funds for other district priorities and reducing pressure on local property taxes.

It sets a formal notification requirement to ensure DESE is aware of which mandates are being unfunded and the financial impact.

The policy does not create new unfunded mandates; rather, it permits districts to opt out of spending on mandates that lack full funding. It also includes a protection against penalties or reductions in state aid for those opting out.

If you’d like, I can provide a side-by-side comparison with current law or a plain-language briefing for school committee members.