Bill
HB 7318
HB 7318 expands state aid for high-cost needs (special ed, transport, CTE, pre-K) and regionalization, plus a stabilization fund for key districts and SRO reimbursements.
Policy objective
- The bill amends The Education Equity and Property Tax Relief Act to expand and modify state Funding mechanisms for education, with a focus on:
- Supporting districts with high costs (special education, transportation, regionalization, etc.)
- Advancing pre-K access
- Stabilizing financially stressed districts (notably Central Falls, Davies, and the Met Center)
- Enhancing state support for school resource officers (SROs)
- Increasing the regionalization (regional district) bonus to 6% of the state share of foundation aid (ongoing)
Key provisions and changes
1) Expanded categorical (state-funded) programs under the permanent foundation aid
- Beyond core foundation aid, the act authorizes direct state funding for:
a) Excess costs for special education
- Defines “extraordinary costs” as those exceeding a threshold above four times the core foundation amount (core instruction plus student success amount).
- DESE must prorate funding if total approved costs exceed appropriation.
- The department shall also collect data on costs exceeding thresholds of 2x, 3x, and 5x the core foundation amount.
b) Career and technical education (CTE) costs
- Funds to support initial investments for transforming/creating comprehensive CTE programs and pathways.
- Criteria for allocating CTE funds to be developed by DESE; funding prorated if costs exceed available funds.
c) Early childhood (pre-kindergarten) access
- Funds aimed at expanding access to voluntary, high-quality, free pre-K programs.
- DESE to recommend allocation criteria.
d) Central Falls, Davies, and the Met Center Stabilization Fund
- Establishes a stabilization fund to ensure funding for these districts’ student needs.
- Addresses local share concerns and outlines how aid and non-formula costs (transportation, facility maintenance, retiree health benefits) are shared between the state and Central Falls.
- Transition plan through which funding shares are reviewed annually; state share may be funded via reallocation.
- After transition, the municipality continues its contribution per statute; additional support for Davies/Met Center for stand-alone high schools is addressed; DESE to set criteria for allocating stabilization funds.
e) Transportation costs for out-of-district non-public schools
- State funding to reimburse excess costs for transporting students to out-of-district non-public schools (per Chapter 21.1).
- Proration applies if costs exceed available funding.
f) Transportation costs within regional districts
- State funding to cover excess costs for transporting within regional school districts.
- Cost-sharing: state and regional district split costs equally net of any federal revenue; funding prorated if costs exceed appropriation.
g) Regionalization bonus for public school districts
- Defines “regionalized” districts (including Chariho) and timelines for when bonuses begin.
- Phased bonus structure:
- For districts regionalized by July 1, 2010: bonus starts FY2012.
- For districts regionalizing after July 1, 2010: first payout in the first fiscal year after regionalization.
- Initial bonus rate and schedule:
- First year: 2% of the state’s share of foundation aid (increased to 6% for certain timelines).
- 2nd year: 1%.
- 3rd year onward: ongoing at 6% (for districts that remain regionalized, or regionalize by 2026; special treatment for Chariho).
- 7) The Chariho district’s regionalization bonus applies to the state share of the permanent foundation aid for its member towns.
- Proration if regionalization costs exceed appropriations.
h) Deleted subsection (per prior version)
i) State support for School Resource Officers (SROs)
- From FY2019 onward, districts/municipalities that hire SROs receive state reimbursement for 50% of salaries and benefits for qualifying positions, for three years.
- Eligibility rules:
- SROs assigned to one school (or two for larger schools).
- No reimbursement for SROs beyond required staffing or replacement of existing positions without creating new positions eligible for funding.
- Training requirements: SROs must have at least 40 hours of school policing training.
- Reimbursements apply to positions established on/after July 1, 2018.
j) Funding for other categorical programs (a–g)
- Funded according to the statute’s transition plan in § 16-7.2-7.
2) Procedural and timeline notes
- Effective date: The act takes effect upon passage.
- Transition and proration: Several programs require prorating funds if total applicant costs exceed available appropriations in any fiscal year.
- Ongoing regionalization bonus: The act clarifies continuing status of the regionalization bonus as long as districts remain regionalized.
Impact and beneficiaries
Public school districts and students:
Tax and local fiscal implications:
Overall, HB 7318 aims to increase targeted state funding for high-cost education needs, expand access to early education, stabilize financially stressed districts, and reinforce regionalization incentives, while maintaining existing formula-based core funding and transition planning.
Compiled from official sources — confirm details with the bill’s official record.
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