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HB 5981

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

2025 Regular Session Introduced by Nathan Biah and 4 co-sponsors

Expands state funding for high-cost education programs (special ed, CTE, early childhood, transportation, regionalization) to reduce local property tax burden.

05/15/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5981

Summary — HB 5981: The Education Equity and Property Tax Relief Act

Status: Committee recommended measure be held for further study (05/15/2025)
Introduced: February 28, 2025 (House); Primary sponsor: Rep. Speakman
Referred to: House Finance (scheduled hearing 05/09/2025; 05/15/2025 held for further study)

Note on source material: the provided bill text includes an unrelated Michigan food-law provision (dynamic pricing/WIC) at the top. This summary focuses on the substantive education provisions that amend Rhode Island General Laws § 16-7.2-6 under the Education Equity and Property Tax Relief Act.

Purpose
- To expand and clarify the list of categorical programs and state-funded expenses paid through the permanent foundation education-aid program, directing state support for specified high-cost or policy-priority areas to promote equity and to reduce local property tax burden.

Key provisions and changes
- Section amended: 16-7.2-6 — enumerates additional categories eligible for direct state funding beyond foundation aid.

  • Special education excess costs (subsection a)

    • Defines “extraordinary” special education costs for reimbursement when an individual student’s costs exceed a state-approved threshold set at more than four times the core foundation amount (core instruction + student success amounts).
    • Requires the Department of Elementary and Secondary Education (RIDE) to prorate reimbursements when total approved requests exceed available appropriations.
    • Directs RIDE to collect data on costs that exceed thresholds set at 2×, 3×, and 5× the core foundation amount.

  • Career and technical education (CTE) (subsection b)

    • Provides state funding for initial investments and higher-than-average ongoing costs (facilities, equipment, supplies) for comprehensive CTE programs in critical and emerging industries.
    • RIDE to develop allocation criteria and prorate funds if requests exceed available appropriations.

  • Early childhood / pre-kindergarten (subsection c)

    • Funds programs to increase access to voluntary, free, high-quality pre-K; RIDE to recommend allocation criteria.

  • Central Falls, Davies, and the Met Center Stabilization Fund (subsection d)

    • Establishes a stabilization fund to support Central Falls (recognizing local capacity concerns) and provide additional support for Davies and the Met Center (stand-alone high school with academic + CTE).
    • States that state and city shall share certain costs (transportation, facility maintenance, retiree health benefits); fund amounts to be annually reviewed and may be supported by reallocated state appropriations during transition.

  • Out-of-district non-public transportation (subsection e)

    • State funding for excess costs of transporting students to out-of-district non-public schools for districts participating in the statewide system; reimbursements prorated if requests exceed funding.

  • Regional school district transportation (subsection f)

    • State funding for excess costs of transporting students within regional districts; state and regional district share transportation costs equally, net federal sources; prorated if requests exceed funding.

  • Regionalization bonus (subsection g)

    • Establishes a short-term bonus for districts that regionalize:
    • Commencement rules based on regionalization date (e.g., districts regionalized by 7/1/2010 began in FY2012).
    • Bonus = 2% of the state’s share of foundation aid in the first fiscal year, 1% in the second year, and ceases in the third.
    • Chariho application and prorating rules if requests exceed appropriations.

  • School Resource Officers (subsection i — truncated)

    • Introduces state support for SROs, defines SRO as a sworn career law enforcement officer in a community-oriented policing assignment, and references a 40-hour specialized training requirement — full text beyond the truncation not included in provided excerpt.

Who is affected
- Public school districts (including regional districts), the cities/towns contributing to them (notably Central Falls), specialized institutions (Davies, the Met Center), students receiving special education services, students using out-of-district non-public transportation, CTE programs, early childhood programs, and local budgets (property taxpayers) to the extent state aid offsets local costs.

Budgetary and procedural notes
- Most categorical programs are contingent on annual appropriations and include explicit prorating when total approved costs exceed funds available — actual impact depends on General Assembly appropriations.
- The bill amends existing statute and thus would take effect according to standard legislative enactment procedures; as of 05/15/2025 the House Finance committee recommended holding the measure for further study.
- The provided text is incomplete in places (SRO subsection truncated) and mixed with an unrelated Michigan bill excerpt; final legislative language will determine precise obligations, thresholds, and implementation details.

Potential impacts
- Raises state responsibility for a broader set of high-cost educational expenses, potentially reducing local property tax pressure if adequately funded.
- Financial relief for districts with high special education, CTE, and transportation costs, but actual benefits will vary based on appropriations and proration rules.
- Requires additional data collection by RIDE to inform policy and future funding decisions.

Compiled from official sources — confirm details with the bill’s official record.

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