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HB 7681

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

2026 Regular Session Introduced by Mike Chippendale and 8 co-sponsors

The bill expands state funding beyond core foundation to support targeted education programs and transportation, including extraordinary special education costs, CTE, early childho

04/28/2026 Committee recommended measure be held for further study
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Bill Summary · HB 7681

Summary of HB 7681 (Rhode Island, 2026) – The Education Equity and Property Tax Relief Act

Purpose and intent

  • Establishes and expands state funding mechanisms to support education beyond the core foundation aid.
  • Aims to promote education equity while providing targeted property tax relief related to education costs.
  • Creates and adjusts several “categorical programs” funded by the state to help districts address special education, career/technical education, early childhood, regionalization, transportation, and safety-related costs (e.g., school resource officers).

Key provisions and changes

  1. Revised foundation and new categorical funding (16-7.2-6)
    • In addition to the core foundation aid, the bill authorizes direct state funding for several categories:
      • (a) Excess costs for special education (extraordinary costs):
      • Funds reimbursement for costs above a state-approved threshold (above four times the core foundation amount, defined as core instruction plus student success amount).
      • DES (Department of Elementary and Secondary Education) must prorate if total requests exceed appropriations.
      • Data collection on costs exceeding thresholds (2x, 3x, 5x) is required.
      • (b) Career and technical education (CTE):
      • Funds to support initial investment for transforming/creating CTE programs and pathways, including facilities, equipment, and supplies.
      • Criteria to allocate funds will be developed by the DOE; prorated if demand exceeds funding.
      • (c) Early childhood (pre-kindergarten):
      • Funds to increase access to voluntary, free, high-quality pre-K; DOE to recommend allocation criteria. Note: All three (a–c) are to be allocated subject to annual appropriations with proration if necessary.
  • (d) Central Falls, Davies, and the Met Center Stabilization Fund:

    • Creates a stabilization fund to support these districts, addressing local share concerns and capacity issues.
    • Covers components outside the permanent foundation (transportation, facility maintenance, retiree health benefits).
    • Funding split between state and city; transition period with an annual review. State share may be funded by reallocating current state appropriations to Central Falls.
  • (e) Transportation for out-of-district non-public schools:

    • State funds for transporting students to non-public schools (out-of-district) under ch. 21.1.
    • Beginning in FY 2027, fully funded transportation categorical funds to protect regional district interests. Proration if funding requests exceed available funds.
  • (f) Transportation within regional school districts:

    • State funds for excess costs of transporting students within regional districts.
    • States and regional districts share costs equally, net of federal revenue; prorated if funding is insufficient.
  • (g) Regionalization bonuses for public regionalized districts:

    • Applies to regional districts (including Chariho) established under ch. 3.
    • Bonus schedule:
      • 2% of the state’s share of foundation aid in the first year if regionalized by FY 2012; otherwise in the first year after regionalization.
      • 1% in the second year.
      • Ceases in the third year.
      • Chariho’s bonus is applied to the state share for member towns.
    • Proration if costs exceed appropriations.
  • (i) State support for School Resource Officers (SROs):

    • From FY 2019 for three years, districts/municipalities employing SROs receive state reimbursement equal to 50% of salaries/benefits for qualifying positions.
    • SRO allocation rules:
      • 1 officer for schools with <1,200 students; 2 officers for 1,200+ students.
      • No reimbursement for officers beyond required counts or for eliminating positions and creating new ones under this provision.
  • (h) Deleted subsection:

    • References a previously deleted subsection (no longer in effect).
  • (j) Transition funding for categorical programs:

    • Categorical programs in (a)–(g) continue to be funded according to a transition plan in § 16-7.2-7.
  1. Effective date

    • The act takes effect upon passage.
  2. Additional notes from EXPLANATION section

    • Highlights the commitment to fully fund transportation funds between the state and regional districts starting with the FY 2027 budget to protect regional district interests and support the regional mission.

Who is affected

  • School districts and regional districts (including Central Falls, Davies, Met Center, Chariho) that receive foundation aid or participate in regionalization.
  • Students with special education needs (through funding for extraordinary costs).
  • Students and districts participating in or expanding CTE programs.
  • Children eligible for or enrolled in pre-kindergarten programs.
  • Districts operating transportation for regular out-of-district and within-regional transportation (with potential changes in cost-sharing and funding adequacy).
  • Public schools employing School Resource Officers (SROs) and the municipalities/districts funding those positions.
  • Administrative bodies (DOE and related agencies) responsible for administering, prorating, and reporting on these funds and data.

Procedural and timeline aspects

  • Revisions apply to the FY 2027 budget for explicit funding adequacy in transportation within regional districts (full funding beginning then).
  • Annual prorating may occur if total approved costs exceed available funding.
  • Regionalization bonuses and stabilization funds have defined start points (based on regionalization timelines) and a three-year window for bonuses.
  • Transition plan governs how categorical program funds are allocated over time.

If you’d like, I can convert this into a one-page briefing for policymakers or provide a side-by-side comparison with current law to highlight the net effects.

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

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