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HB 7245

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

2026 Regular Session Introduced by Jennifer Boylan and 9 co-sponsors

Rhode Island HB 7245 expands education funding by redefining extraordinary special education costs, adding funds for CTE, early childhood, regionalization, and transport, plus a st

04/28/2026 Committee recommended measure be held for further study
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Bill Summary · HB 7245

Summary of HB 7245 (Rhode Island) – Education Equity and Property Tax Relief Act

Session: 2026

Purpose and Overall Intent

HB 7245 seeks to modify the state’s education funding framework to expand and refine funding for excess costs, career and technical education, early childhood programs, regionalization, transportation to non-public and regional districts, and school safety staffing (SROs). It is designed to promote education equity by adjusting the foundation aid formula and establishing targeted funds to support districts with special needs, regionalization, and other burdens, while also linking some funding to property tax relief objectives.

Key changes focus on:
- Recalibrating what constitutes “extraordinary” costs for special education and how they are funded.
- Providing additional state support for various categorical programs beyond the core foundation aid.
- Creating stabilization and regionalization-related funds to support districts facing unique financial pressures.
- Continuing state support for School Resource Officers (SROs) with defined enrollment-based allocations.

Main Provisions

1) Categorical Programs and State-Funded Expenses (Section 16-7.2-6)

HB 7245 adds or clarifies several state-funded categories in addition to base foundation aid:

  • (a) Special Education Excess Costs (Extraordinary Costs)

    • Defines extraordinary costs as those exceeding thresholds tied to multiples of the core foundation amount (which includes core instruction plus student success amount).
    • Thresholds:
    • FY 2028: costs exceeding 3.5 times the core foundation amount.
    • FY 2029 onward: costs exceeding 3 times the core foundation amount.
    • Pro rata distribution if costs exceed available funding; carryover for students moving into a district after a budget is adopted.
    • DESE shall collect data on costs exceeding 2x, 3x, and 5x the core foundation amount.

  • (b) Career and Technical Education (CTE) Costs

    • Supports initial investment for transforming or creating CTE programs and pathways.
    • Addresses higher ongoing costs for facilities, maintenance, equipment, and supplies.
    • DESE shall develop criteria to allocate these funds; funds prorated if demand exceeds supply.

  • (c) Early Childhood / Pre-K Access

    • Funds to expand access to voluntary, free, high-quality pre-kindergarten.
    • DESE to recommend criteria for allocating early childhood funds.

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

    • Establishes a dedicated stabilization fund to support these districts due to capacity concerns.
    • Requires sharing of certain costs (education aid under §16-7.2-3 and outside-the-foundation costs like transportation, facility maintenance, retiree health benefits) between the state and Central Falls.
    • Transition plan with potential state reallocation and ongoing local contributions; end-state involves continued municipal contribution under §16-7-24.
    • Additional stabilization considerations for Davies and Met Center for running stand-alone high schools with both academic and CTE coursework.
    • DESE to set criteria for allocating stabilization funds.

  • (e) Excess Costs for Transport to Out-of-District Non-Public Schools

    • State funding to cover transportation costs for students attending out-of-district non-public schools.
    • Pro rata distribution if funding is insufficient.

  • (f) Excess Costs for Transport Within Regional Districts

    • State funding to cover excess costs of transporting students within regional districts.
    • Costs shared equally between the state and the regional district (net federal revenue considered); funds prorated if insufficient.

  • (g) Regionalization Bonus for Regionalized Districts

    • Applies to regionalized districts (including Chariho) with a two-year ramp: 2% of the state’s share in year 1, then 1% in year 2, ceasing in year 3.
    • Chariho’s bonus allocated to the state share of permanent foundation aid for member towns.
    • Funds prorated if demand exceeds funds.

  • (i) State Support for School Resource Officers (SROs)

    • From FY 2019 for three years, districts or municipalities employing SROs receive state reimbursement totaling 50% of salaries/benefits for qualifying positions.
    • Eligibility rules:
    • SROs assigned to one school; enrollment-based officer requirements (<1,200 students = 1 officer; ≥1,200 = 2 officers).
    • Additional SROs above minimum not reimbursed.
    • Replacing existing SROs with new ones funded under this provision not reimbursed.

  • (h) Deleted Section

    • Subsection (h) is omitted (previously existed in older iterations).

  • (j) Funding of Categorical Programs

    • Categorical programs (a–g) are funded pursuant to a transition plan in § 16-7.2-7.

2) Effective Date

  • The act takes effect upon passage.

Affected Entities and Impacts

  • School Districts and Regions: Increased funding for special education excess costs, CTE, early childhood, transportation to non-public and regional districts, and regionalization bonuses; potential shifts in funding for Central Falls, Davies, and Met Center operations.
  • Central Falls, Davies, Met Center: Special stabilization funding to address financial pressures and local capacity constraints; ongoing state/district cost-sharing arrangements.
  • SRO Programs: Partial reimbursement for districts that have or hire SROs; clarifies enrollment-based staffing requirements and eligibility.
  • DESE (Department of Elementary and Secondary Education): Responsible for developing criteria, prorating funds, and collecting data on costs exceeding thresholds.

Procedural and Timeline Notes

  • Provisions specify thresholds for FY 2028 and FY 2029 onward, indicating a gradual ramp in extraordinary cost funding.
  • Funding calculations include prorating when total requested costs exceed appropriated funds, with potential carryover or reallocation in subsequent years.
  • The act references a transition plan in § 16-7.2-7 for funding of categorical programs, suggesting phased implementation and potential adjustments during the transition.

Summary

HB 7245 expands and refines Rhode Island’s Education Equity and Property Tax Relief framework by:
- Redefining extraordinary special education costs and phasing new thresholds (3.5x in 2028, 3x in 2029+).
- Establishing targeted funds for CTE, early childhood, regionalization, and transportation-related exceptional costs.
- Creating a stabilization fund mechanism for Central Falls, Davies, and the Met Center, with specific cost-sharing and transition considerations.
- Maintaining or introducing SRO funding to support school safety in collaboration with local police.
- Providing a framework for prorating funds when demand exceeds available resources and requiring data collection to inform ongoing adjustments.

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

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