Bill Would Overhaul State Education Funding System

February 5, 2026 - 07:28

A significant proposal to restructure how the state funds its public schools took center stage at the State House this week. Lawmakers on a key House committee heard testimony that a major shift in property tax policy could generate an additional $1.4 billion for education.

The core of the bill involves fundamentally changing the Statewide Education Property Tax (SWEPT). Currently, the tax functions with substantial local variations, allowing towns to keep revenue raised above a certain threshold. The proposed overhaul would transform it into a true, uniform statewide levy. This change would mean all revenue collected would flow directly into the state's Education Trust Fund, rather than a portion being retained by property-wealthy communities.

Proponents argue this is a critical step toward equity, ensuring more consistent and adequate funding for school districts across the state, particularly those in communities with lower property values. The substantial $1.4 billion figure presented to the committee underscores the potential financial impact. The proposal is expected to spark considerable debate, as it would alter long-standing local funding dynamics and represents one of the most substantial education finance reforms considered in recent years. Committee deliberations on the bill are ongoing.