R.I. League of Cities and Towns Convenes Municipal and School Leaders to Tackle School Funding Issues

Providence, R.I. – The Rhode Island League of Cities and Towns (The League) convened over 100 municipal and school leaders for an in depth discussion on all aspects of the state’s school funding formula, including understanding funding in the upcoming budget cycle,and continued discussions on improvements to the formula, on Friday, February 7.

"Education spending represents the single largest budget item in most communities, ensuring that our schools receive stable, adequate, and equitable funding is essential for the success of our students and communities," said Randy Rossi, Executive Director of the League. "The League has recently offered two opportunities for elected officials and municipal and school staff to reset baseline knowledge and foster a collaborative approach to budgeting. Our goal is to work with state leaders to enhance budget certainty and work towards providing the best possible education for our students, while also not overburdening local taxpayers."

Funding and financial experts presented to attendees, including Rhode Island Auditor General David Bergantino, Stephen Coleman Jr., Chief of the Division of Municipal Finance at the R.I. Department of Revenue, and Mark Dunham, Chief Finance Officer at the R.I. Department of Education.

In November, the League convened a forum to discuss education funding in Rhode Island to begin a conversation to understand what elements of the education funding formula are working and what challenges municipalities and schools face while prioritizing the children of Rhode Island and our state’s future workforce. Municipal CEOs, superintendents, finance officers, and council and school committee members participated in sessions on the education funding formula and reporting of RIDE survey data, and shared issues and practical solutions from both the municipal and school sides.

Municipalities have identified several areas that have serious impacts on communities, includinglarge year to year swings in funding through the formula; out of district transportation including private school transportation funded by local communities ; funding limitations in the budget, like high-cost special education, which is not funded based upon student need, but rather by budget appropriation.

Rossi added, "The League is committed to working alongside school leaders to advance proactive solutions that ensure equitable and sustainable education funding this legislative session.”

League’s Legislative Priorities – Education Funding

With the education funding formula phase-in complete, we support the state’s continued commitment to schools. As the state considers the next phase of the formula, we ask the following:

Improve Budget Certainty – School districts can experience significant fluctuations in their state education aid from one year to the next. A smoothing approach needs to be considered to spread the decreases over a longer period. Public school enrollment has continued to decline since 2019, further highlighting the need to evaluate the overall structure of public education in Rhode Island.

Increase the State Share of Teacher Pension Contributions – Rhode Island currently covers 40% of the required contribution with the local government covering 60%. Rhode Island is one of only two states in New England where the state does not contribute 100% of the required pension contributions for teachers. Increasing the state share would provide greater parity with New England and provide local budget relief.

Fully Support Categorical Program Funding – Some education costs, such as high-cost special education, career and technical education, and transportation, are not included in the education formula and are subject to appropriation each year adding to further uncertainty. Cities and towns continue to struggle with escalating expenditures for high-cost special education and transportation. While the League appreciates the efforts of Governor McKee and the General Assembly to address the challenges around education, especially in the aftermath of the pandemic, our members are still concerned about the integrity of the state’s Education Funding Formula. We plan to work closely with the Blue Ribbon Commission to develop recommendations for a fair, equitable, and adequate funding formula for Rhode Island Schools.

Additional details about the League's legislative priorities are available in this year's priorities booklet.