Bill Sponsors
Casey, J. Brien, and Phillips
Committee
House Finance
Summary
Select
This bill amends the education funding laws regarding how much money local school districts must pay to charter public schools, the Davies Career and Technical High School, and the Met Center. Under current law, the amount of funding a local district can withhold from these schools was set to have a maximum limit (cap) of 14% starting in the 2026 fiscal year. This bill removes that 14% cap. As a result, the reduction to the local per-pupil funding paid to these charter and technical schools can exceed 14%.
Sponsor
Analysis
Pros for Progressives
- Allows traditional public school districts to retain more of their local tax dollars, ensuring better funding for neighborhood schools that serve all students.
- Prevents a future cap that could have disproportionately drained resources from struggling public school districts by forcing them to send more money to charter schools.
- Supports public education infrastructure and unionized educators by prioritizing funding for traditional municipal school systems over privately managed charter public schools.
Cons for Progressives
- May reduce financial resources for charter public schools that often serve low-income and minority students in urban areas seeking alternatives to underperforming districts.
- Could negatively impact the funding for career and technical schools like Davies and the Met Center, which provide valuable vocational training for disadvantaged youth.
- Might create funding instability for alternative public education models that some progressive families rely on for specialized educational approaches.
Pros for Conservatives
- Empowers local school districts by removing a state mandate that would have capped how much funding they can retain, enhancing local control over tax dollars.
- Protects municipal budgets by preventing local taxpayers from being forced to subsidize charter schools at higher rates if the 14% cap had gone into effect.
- Reduces state interference in local education funding formulas, allowing local governments to allocate property tax revenues more efficiently.
Cons for Conservatives
- Decreases funding for charter schools, which limits school choice and forces more families to rely on traditional, government-run public school monopolies.
- Financially penalizes alternative education models that often operate more efficiently and without the heavy influence of public sector teachers' unions.
- Could force some charter schools or technical centers to cut programs or close, restricting the free market of educational options available to parents.
Constitutional Concerns
None Likely. This bill simply modifies a statutory formula for allocating public education funds between traditional school districts and charter or technical schools. It does not implicate free speech, due process, or protections from unreasonable searches and seizures.
Impact Overview
Groups Affected
- Charter school students
- Traditional public school students
- Local school districts
- Charter school administrators
- Property taxpayers
Towns Affected
All
Cost to Taxpayers
None
Revenue Generated
None
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 05/22/2026 Introduced, referred to House Finance
• 05/22/2026 Scheduled for hearing (05/26/2026)
• 05/22/2026 Scheduled for hearing (05/26/2026)
Bill Text
SECTION 1. Section 16-7.2-5 of the General Laws in Chapter 16-7.2 entitled "The Education Equity and Property Tax Relief Act" is hereby amended to read as follows:
16-7.2-5. Charter public schools, the William M. Davies, Jr. Career and Technical High School, and the Metropolitan Regional Career and Technical Center.
(a) Charter public schools, as defined in chapter 77 of this title, the William M. Davies, Jr. Career and Technical High School (Davies), and the Metropolitan Regional Career and Technical Center (the Met Center) shall be funded pursuant to § 16-7.2-3. If the October 1 actual enrollment data for any charter public school shows a ten percent (10%) or greater change from the prior year enrollment that is used as the reference year average daily membership, the last six (6) monthly payments to the charter public school will be adjusted to reflect actual enrollment. The state share of the permanent foundation education aid shall be paid by the state directly to the charter public schools, Davies, and the Met Center pursuant to § 16-7.2-9 and shall be calculated using the state- share ratio of the district of residence of the student as set forth in § 16-7.2-4. The department of elementary and secondary education shall provide the general assembly with the calculation of the state share of permanent foundation education aid for charter public schools delineated by school district.
(b) The local share of education funding shall be paid to the charter public school, Davies, and the Met Center by the district of residence of the student and shall be the local, per-pupil cost calculated by dividing the local appropriation to education from property taxes, net of debt service, and capital projects, as defined in the uniform chart of accounts by the average daily membership for each city and town, pursuant to § 16-7-22, for the reference year.
(c) Beginning in FY 2017, there shall be a reduction to the local per-pupil funding paid by the district of residence to charter public schools, Davies, and the Met Center. This reduction shall be equal to the greater (i) Of seven percent (7%) of the local, per-pupil funding of the district of residence pursuant to subsection (b) or (ii) The per-pupil value of the district’s costs for non-public textbooks, transportation for non-public students, retiree health benefits, out-of-district special- education tuition and transportation, services for students age eighteen (18) to twenty-one (21) years old, pre-school screening and intervention, and career and technical education, tuition and transportation costs, debt service and rental costs minus the average expenses incurred by charter schools for those same categories of expenses as reported in the uniform chart of accounts for the prior preceding fiscal year pursuant to § 16-7-16(11) and verified by the department of elementary and secondary education. In the case where audited financials result in a change in the calculation after the first tuition payment is made, the remaining payments shall be based on the most recent audited data. For those districts whose greater reduction occurs under the calculation of (ii), there shall be an additional reduction to payments to mayoral academies with teachers who do not participate in the state teacher’s retirement system under chapter 8 of title 36 equal to the per-pupil value of teacher retirement costs attributable to unfunded liability as calculated by the state’s actuary for the prior preceding fiscal year.Notwithstanding the foregoing, beginning with FY 2026, the reduction to the local per-pupil funding shall not exceed fourteen percent (14%).
(d) Local district payments to charter public schools, Davies, and the Met Center for each district’s students enrolled in these schools shall be made on a quarterly basis in July, October, January, and April; however, the first local-district payment shall be made by August 15, instead of July. Failure of the community to make the local-district payment for its student(s) enrolled in a charter public school, Davies, and/or the Met Center may result in the withholding of state education aid pursuant to § 16-7-31.
(e) Beginning in FY 2017, school districts with charter public school, Davies, and the Met Center enrollment, that, combined, comprise five percent (5%) or more of the average daily membership as defined in § 16-7-22, shall receive additional aid for a period of three (3) years. Aid in FY 2017 shall be equal to the number of charter public school, open-enrollment schools, Davies, or the Met Center students as of the reference year as defined in § 16-7-16 times a per-pupil amount of one hundred seventy-five dollars ($175). Aid in FY 2018 shall be equal to the number of charter public school, open-enrollment schools, Davies, or the Met Center students as of the reference year LC006490 - Page 2 of 4 as defined in § 16-7-16 times a per-pupil amount of one hundred dollars ($100). Aid in FY 2019 shall be equal to the number of charter public school, open-enrollment schools, Davies, or the Met Center students as of the reference year as defined in § 16-7-16 times a per-pupil amount of fifty dollars ($50.00). The additional aid shall be used to offset the adjusted fixed costs retained by the districts of residence.
(f) [Deleted by P.L. 2023, ch. 79, art. 8, § 2.]
SECTION 2. This act shall take effect upon passage.
16-7.2-5. Charter public schools, the William M. Davies, Jr. Career and Technical High School, and the Metropolitan Regional Career and Technical Center.
(a) Charter public schools, as defined in chapter 77 of this title, the William M. Davies, Jr. Career and Technical High School (Davies), and the Metropolitan Regional Career and Technical Center (the Met Center) shall be funded pursuant to § 16-7.2-3. If the October 1 actual enrollment data for any charter public school shows a ten percent (10%) or greater change from the prior year enrollment that is used as the reference year average daily membership, the last six (6) monthly payments to the charter public school will be adjusted to reflect actual enrollment. The state share of the permanent foundation education aid shall be paid by the state directly to the charter public schools, Davies, and the Met Center pursuant to § 16-7.2-9 and shall be calculated using the state- share ratio of the district of residence of the student as set forth in § 16-7.2-4. The department of elementary and secondary education shall provide the general assembly with the calculation of the state share of permanent foundation education aid for charter public schools delineated by school district.
(b) The local share of education funding shall be paid to the charter public school, Davies, and the Met Center by the district of residence of the student and shall be the local, per-pupil cost calculated by dividing the local appropriation to education from property taxes, net of debt service, and capital projects, as defined in the uniform chart of accounts by the average daily membership for each city and town, pursuant to § 16-7-22, for the reference year.
(c) Beginning in FY 2017, there shall be a reduction to the local per-pupil funding paid by the district of residence to charter public schools, Davies, and the Met Center. This reduction shall be equal to the greater (i) Of seven percent (7%) of the local, per-pupil funding of the district of residence pursuant to subsection (b) or (ii) The per-pupil value of the district’s costs for non-public textbooks, transportation for non-public students, retiree health benefits, out-of-district special- education tuition and transportation, services for students age eighteen (18) to twenty-one (21) years old, pre-school screening and intervention, and career and technical education, tuition and transportation costs, debt service and rental costs minus the average expenses incurred by charter schools for those same categories of expenses as reported in the uniform chart of accounts for the prior preceding fiscal year pursuant to § 16-7-16(11) and verified by the department of elementary and secondary education. In the case where audited financials result in a change in the calculation after the first tuition payment is made, the remaining payments shall be based on the most recent audited data. For those districts whose greater reduction occurs under the calculation of (ii), there shall be an additional reduction to payments to mayoral academies with teachers who do not participate in the state teacher’s retirement system under chapter 8 of title 36 equal to the per-pupil value of teacher retirement costs attributable to unfunded liability as calculated by the state’s actuary for the prior preceding fiscal year.
(d) Local district payments to charter public schools, Davies, and the Met Center for each district’s students enrolled in these schools shall be made on a quarterly basis in July, October, January, and April; however, the first local-district payment shall be made by August 15, instead of July. Failure of the community to make the local-district payment for its student(s) enrolled in a charter public school, Davies, and/or the Met Center may result in the withholding of state education aid pursuant to § 16-7-31.
(e) Beginning in FY 2017, school districts with charter public school, Davies, and the Met Center enrollment, that, combined, comprise five percent (5%) or more of the average daily membership as defined in § 16-7-22, shall receive additional aid for a period of three (3) years. Aid in FY 2017 shall be equal to the number of charter public school, open-enrollment schools, Davies, or the Met Center students as of the reference year as defined in § 16-7-16 times a per-pupil amount of one hundred seventy-five dollars ($175). Aid in FY 2018 shall be equal to the number of charter public school, open-enrollment schools, Davies, or the Met Center students as of the reference year LC006490 - Page 2 of 4 as defined in § 16-7-16 times a per-pupil amount of one hundred dollars ($100). Aid in FY 2019 shall be equal to the number of charter public school, open-enrollment schools, Davies, or the Met Center students as of the reference year as defined in § 16-7-16 times a per-pupil amount of fifty dollars ($50.00). The additional aid shall be used to offset the adjusted fixed costs retained by the districts of residence.
(f) [Deleted by P.L. 2023, ch. 79, art. 8, § 2.]
SECTION 2. This act shall take effect upon passage.