RELATING TO EDUCATION -- THE EDUCATION EQUITY AND PROPERTY TAX, RELIEF ACT
Impact
The implications of HB 7245 on state law are significant, particularly as it revises existing funding formulas and creates new financial obligations for the state regarding special education. By setting specific thresholds and mechanisms for funding excess costs, the bill aims to enhance financial support for districts facing higher-than-average expenses. This legislative change is expected to improve the capacity of local education agencies to cater to diverse student needs and promote equity in educational opportunities across the state.
Summary
House Bill 7245, known as the Education Equity and Property Tax Relief Act, seeks to amend the existing funding framework for special education services within the state. This bill specifically addresses the calculation of extraordinary costs associated with special education students, revising the thresholds for what constitutes extraordinary expenses over the fiscal years 2028 and 2029. Additionally, it provides for increased funding to cover excess costs for special education students who enroll in a district after the budget has been finalized. This is aimed at ensuring that districts are not financially strained when accommodating new students with special needs.
Contention
Despite its objectives, the bill has sparked discussions regarding its funding mechanisms and the adequacy of state support. Critics of the bill may raise concerns about its reliance on state appropriations, questioning whether the anticipated funding levels will indeed be sufficient to cover the projected extraordinary costs in the following fiscal years. Moreover, there is apprehension about how these changes would affect districts like Central Falls, which already face challenges in meeting local funding shares. The balance between state support and local contributions will likely be a pivotal point of contention as discussions around the bill progress.
Amends the Education Equity and Property Tax Relief Act to set the regionalization bonus at 2% of the state's share of foundation education aid for the fiscal year starting July 1, 2025, and for each year thereafter.
Amends the term "extraordinary costs" for the purposes of excess costs associated with special education students. The new definition of extraordinary costs would be educational costs that are over 3 times the average statewide special education cost.
Amends State funding calculations for special education, revising extraordinary cost calculations for FY 2027-2028, and providing additional funds for excess costs when special education students move into a district after the budget is approved.
Removes language that requires the department of elementary and secondary education to prorate funds to school districts in certain situations and eliminate funding for certain programs.
Increases the state’s regionalization bonus to six percent (6%) of the state’s fiscal year share of foundation education aid. This bonus would be ongoing and continuing so long as the district remains a regional school district.