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SB 2373

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

2026 Regular Session Introduced by Walter Felag and 5 co-sponsors

Expands state funding for targeted education costs (special ed excess costs, CTE, pre-K, transportation, SROs) and adds a regionalization bonus to encourage district regionalizatio

05/19/2026 Committee recommended measure be held for further study
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Bill Summary · SB 2373

Overview

SB 2373, introduced in the 2026 Rhode Island General Assembly, relates to education funding and property tax relief. The bill amends the Education Equity and Property Tax Relief Act to expand and adjust several targeted funding programs, establish a regionalization bonus (with updated terms), and continue state support for school resource officers (SROs). It takes effect July 1, 2026.

Main purpose and intent

  • Strengthen direct state funding for specific education costs beyond the core foundation aid.
  • Provide targeted support for regionalization efforts, special education, career and technical education (CTE), early childhood, transportation, and SROs.
  • Clarify and restructure how excess costs and regionalization bonuses are allocated when spending exceeds appropriations.
  • Ensure Central Falls and related entities have stable funding through a dedicated Stabilization Fund during transition.

Key provisions

  • Expanded categories of state-funded expenses (16-7.2-6):

    • (a) Excess costs for special education students beyond an established threshold (above four times the core foundation amount). Districts are prorated if costs exceed available funds; data collection on costs exceeding thresholds (2x, 3x, 5x) is required.
    • (b) CTE costs to support investments for new/expanded programs and facilities; eligibility and prorated distribution rules.
    • (c) Programs to expand access to high-quality, voluntary pre-kindergarten; criteria for funding allocation.
    • (d) Central Falls, Davies, and the Met Center Stabilization Fund to support these districts, with state and city contributions and a transition period. Funds may be reallocated from existing appropriations; ongoing municipal contribution post-transition.
    • (e) Excess transportation costs to out-of-district non-public schools; state funding assumed for districts in the statewide system; prorated if funds are insufficient.
    • (f) Excess transportation costs within regional school districts; state and districts share the costs equally net of federal revenue; prorated if funding is insufficient.
    • (g) Regionalization bonus for eligible regionalized districts (see details below).
    • (h) Deleted provision (previously removed by 2024 legislation).
    • (i) State support for school resource officers (SROs): reimbursement equals 50% of salaries/benefits for qualifying positions, beginning FY 2019 for three years, with specific staffing rules based on school size and limitations on eligibility for positions beyond requirements.
    • (j) Funding for the listed categorical programs remains subject to a transition plan.

  • Regionalization bonus (Section 1(g)):

    • Regionalized districts include traditional regional districts and Chariho.
    • For districts regionalized by July 1, 2010, bonus begins FY 2012; for those regionalizing after 2010, bonus begins in the first year after regionalization.
    • Beginning FY 2026, the regionalization bonus is 2% of the regionalized district’s share of the state’s foundation aid (per the standard formula) in the applicable fiscal year.
    • In the following year, the bonus is 1%.
    • The bonus ends in the third fiscal year.
    • Chariho’s bonus applies to the state share of permanent foundation aid for its member towns.
    • The Department will prorate the regionalization bonus if demand exceeds appropriations.

  • Implementation and transition:

    • Section 2: Act takes effect July 1, 2026.
    • Section 18 (j) notes continued funding under the transition plan.

Who/what is affected

  • School districts statewide, particularly those with:
    • Special education excess costs
    • Career and technical education programs needing initial investments
    • Access to pre-kindergarten programs
    • Transportation costs (out-of-district non-public and within regional districts)
    • Regionalized districts (including Chariho) eligible for the regionalization bonus
  • Central Falls, Davies, and the Met Center, through the Stabilization Fund
  • School resource officers and districts employing SROs, due to potential reimbursement
  • State Department of Elementary and Secondary Education (DESE), which administers and prorates funds and sets criteria

Procedural/timeline aspects

  • Effective date: July 1, 2026.
  • Regionalization bonus: 2% in FY 2026 onward, then 1% in the following year, ceasing in the third year.
  • Proration: Any category with costs exceeding available funds must be prorated among eligible districts.
  • Data collection: DESE must collect data on costs exceeding thresholds (2x, 3x, 5x) for special education.
  • Transition plan: Categorical programs (a–g, and i) continue funding per a transition plan referenced in § 16-7.2-7.

Summary of potential impact

  • Increased direct state funding for targeted educational costs beyond core aid, potentially reducing local property tax burdens in participating districts.
  • Clearer funding mechanisms and criteria for CTE, pre-K, and transportation-related costs, with annual proration when appropriations are insufficient.
  • Financial stability for Central Falls and related facilities through a dedicated Stabilization Fund, with a defined transition period.
  • Expanded support for SROs, potentially affecting safety staffing in middle/high schools and district budgets.
  • A newly updated regionalization bonus creates an ongoing incentive for regionalization, but with sunset after three years and subject to funding availability.

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

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