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HB 7388

AN ACT RELATING TO EDUCATION -- THE PAUL W. CROWLEY RHODE ISLAND STUDENT INVESTMENT INITIATIVE

2026 Regular Session Introduced by Terri Cortvriend and 1 co-sponsor

Creates a voluntary fund where municipalities pool resources to cover extraordinary high-cost special education expenses, with awards determined by DESE.

04/28/2026 Committee recommended measure be held for further study
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Bill Summary · HB 7388

Summary of HB 7388 (Rhode Island, 2026) — The Paul W. Crowley Rhode Island Student Investment Initiative

Purpose and Intent

  • Establishes a new mechanism to support high-cost special education (special needs) expenditures by pooling resources from participating municipalities.
  • Creates a dedicated High-Cost Special Education Fund to help school districts manage extraordinary costs beyond ordinary special education spending.

Key Provisions

1) Creation of the High-Cost Special Education Fund

  • A new fund (the “fund”) is established to enable voluntary contributions from municipalities to pool resources.
  • The fund is intended to provide awards to municipalities when they face unanticipated high-cost special education expenses.

2) Administration and Investment

  • The fund will be housed and managed by the Rhode Island Office of the General Treasurer.
  • The treasurer is responsible for investing and managing the fund to maximize deposits from municipalities and generate income to defray excess costs.

3) Award Determination and Criteria

  • Awards to municipalities are determined by the Rhode Island Department of Elementary and Secondary Education (DESE).
  • Criteria will focus on extraordinary costs and needs within a district, and will consider:
    • Specific needs of the district.
    • The department’s criteria designed to assist with extraordinary costs.
    • The total amount contributed by the municipality to the fund up to the date of the award request (as a factor).

4) Participation and Eligibility

  • Participation in the fund is voluntary.
  • A municipality must have contributed to the fund in the fiscal year prior to applying for an award.
  • The initial contribution from a municipality equals that municipality’s high-cost special education expenses for the prior fiscal year.

5) Definitions

  • “Extraordinary costs” aligns with the definition in § 16-7.2-6(a).
  • “High-cost special education” refers to financial support for districts with extraordinary needs and includes excess costs associated with special education.

6) Effective Date

  • This act takes effect upon passage.

Who Is Affected

  • Rhode Island municipalities (districts) that choose to participate by contributing to the fund.
  • Students with high-cost special education needs who generate extraordinary costs at participating districts.
  • The Department of Elementary and Secondary Education (DESE) and the Office of the General Treasurer (OGR) as administering bodies.

Procedural and Timeline Aspects

  • Introduced January 28, 2026; referred to House Finance.
  • As of the latest action: Committee recommended the measure be held for further study (April 28, 2026).
  • The act takes effect upon passage if enacted.

Potential Impact

  • Provides a formal mechanism for districts to pool and share funding related to extraordinary special education costs.
  • Encourages voluntary participation with initial funding tied to the district’s prior year high-cost expenses.
  • Aims to stabilize funding for districts facing unpredictable and high special education costs, potentially reducing budget volatility.
  • Could influence budgeting decisions for districts planning for special education needs by creating an additional funding stream managed by the state treasurer and DESE.

If you’d like, I can provide a plain-language quick-read version or a side-by-side comparison with existing Rhode Island special education funding mechanisms.

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

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