The bill amends Section 16-7.2-6 of the General Laws under "The Education Equity and Property Tax Relief Act" to introduce a new section titled "Categorical programs, state funded expenses." This section outlines direct state funding for excess costs related to special education, career and technical education, pre-kindergarten programs, and transportation for students to out-of-district non-public schools. Additionally, it establishes a Stabilization Fund for Central Falls, Davies, and the Met Center to ensure adequate support for their students, and mandates the Department of Elementary and Secondary Education to collect data on educational costs exceeding certain thresholds.

A significant change in the bill is the increase of the regionalization bonus to six percent (6%) of the state's share of foundation education aid for regionalized school districts. This bonus will be ongoing and continuing for districts that remain regionalized, replacing the previous structure where the bonus would cease after the second fiscal year. The bill specifies that for districts that regionalize or are regionalized before July 1, 2026, the bonus will be calculated based on the state's share of foundation education aid for the fiscal year 2026-2027. For districts that regionalize after July 1, 2026, the first bonus will be awarded in the first fiscal year following the establishment of a regionalized school district. The act is set to take effect upon passage.

Statutes affected:
7318: 16-7.2-6