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SD 1751

An Act relative to a regional school assessment reserve fund

194th Legislature (2025-2026) Introduced by Jake Oliveira

Creates a regional school assessment reserve fund to smooth large year-over-year increases; taps when increases exceed 3.5%, up to 10% of the annual regional assessment.

House concurred
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Bill Summary · SD 1751

Summary: An Act relative to a regional school assessment reserve fund (Senate Docket No. 1751)

Purpose and intent

This bill creates a mechanism for municipalities to smooth spikes in regional school assessments (the cost municipalities pay for regional school districts). By authorizing the creation of a regional school assessment reserve fund, municipalities can set aside money in advance to be used in future fiscal years when regional assessments rise more than 3.5% from the prior year, reducing volatility and helping budgets absorb large increases.

Key provisions

  • New authority and fund creation: Adds Section 13F to Chapter 40, allowing any municipality to establish and appropriate or transfer money into a Regional School Assessment Reserve Fund. The fund is intended for use in upcoming fiscal years to support regional assessments.

  • Trigger for use: The reserve fund may be tapped in years when the Regional Assessment increase exceeds 3.5% over the previous year. Distributions are subject to a majority vote of the municipality’s legislative body.

  • Funding cap: The balance of the reserve fund may not exceed 10% of the municipality’s annual Regional Assessment.

  • Purpose of distributions: Funds from the reserve may be distributed in years when the Regional Assessment is more than 3.5% to bring the increase down to no less than a 2.5% increase.

  • Investment and earnings: The municipal treasurer may invest the funds as authorized in section 54 of chapter 44, and any interest earned must be credited to and become part of the reserve fund.

Who is affected

  • Municipalities participating in regional school arrangements: Cities and towns may opt in by a majority vote of their legislative body.
  • Municipal fiscal officers and legislative bodies: Responsible for establishing the fund, contributing funds, and approving distributions.

Implementation and timeline

  • Adoption process: Municipal acceptance is by a majority vote of the municipality’s legislative body.
  • Use of funds: Applies to future (upcoming) fiscal years; distributions occur in years with more than a 3.5% increase to moderate growth to at least a 2.5% increase.
  • Status and actions:
    • Introduced: February 27, 2025
    • Referred to the Committee on Municipalities and Regional Government (2025)
    • House concurred (same date as the committee action)

Additional context

  • The bill mirrors a similar measure previously filed in the prior session (House No. 2076, 2023-2024), indicating continued interest in stabilization tools for regional school funding.

This act would provide a structured, actuarial-style mechanism to stabilize annual regional school costs for municipalities that choose to participate, with explicit funding caps and defined triggers for use.

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

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