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HB 5399

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

2025 Regular Session Introduced by Jon Brien and 9 co-sponsors

Rhode Island districts can opt out of unfunded state mandates starting July 1, 2026, spending no local funds on them; no penalties, but must certify annual savings to DESE.

04/29/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5399

Summary — HB 5399: The Education Equity and Property Tax Relief Act

Status: Committee recommended measure be held for further study (04/29/2025)
Introduced: February 7, 2025 (bill text) / Filed March 14, 2025 (legislative record)
Sponsor(s): Reps. Hopkins, Paplauskas, Chippendale, Fascia, Cotter, Messier, Tanzi, J. Brien, Perez, Hull
Companion bill: HB 3541

Purpose

HB 5399 would add a new provision to Rhode Island law (R.I. Gen. Laws chapter 16-7.2) to allow school districts, beginning July 1, 2026, to decline to spend local funds to comply with state-imposed mandates that are not “fully funded” by the state through the foundation education-aid formula or other Department of Elementary and Secondary Education (DESE) funding. The stated intent is to provide districts relief from unfunded state mandates and protect local taxpayers.

Key provisions

  • Adds §16-7.2-11 permitting a school district (on or after July 1, 2026) to elect not to spend money on any “mandate” that is not fully funded by state education aid or other DESE funding.
  • Defines “mandate” as any department rule, regulation, or policy that requires an action (or prohibits an action) that causes a district to expend funds when no state funds are provided to cover that expense.
  • Requires affected districts to certify to DESE in writing by August 31 of the fiscal year in which they decline to spend: (1) the specific unfunded mandate being declined, and (2) the total dollar amount saved by not spending on that mandate. This notice must be submitted each year the district invokes the provision.
  • Prohibits penalties or reductions in state aid to a district that elects not to spend on an unfunded mandate.
  • Effective date: Act takes effect upon passage; the opt-out authority is expressly dated to begin July 1, 2026.

Who would be affected

  • School districts: gain statutory authority to opt out of spending for specified unfunded state mandates and must file annual certification with DESE.
  • Students, parents, and local taxpayers: potential changes in services or implementation of state policies in districts that opt out.
  • DESE and the State: would be required to receive and record district certifications but would be limited (by the bill) in imposing penalties or withholding aid for noncompliance with unfunded mandates.

Potential impacts and considerations

  • Could reduce local expenditures for districts that declare mandates unfunded, potentially limiting pressure on local property taxes.
  • Could create variability among districts in the implementation of state rules and in student services if some districts opt out and others do not.
  • Shifts questions about program compliance, enforcement, and equity to the interaction between districts and DESE; fiscal impacts for the state are uncertain since the bill prohibits state aid reductions tied to opting out.

Legislative status and next steps

  • Referred to House Finance; hearings scheduled in April 2025.
  • Committee recommended the measure be held for further study on 04/29/2025. If revived, it would return to committee or proceed to the House floor for further consideration.

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

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