The Providence Journal (Rhode Island) June 11, 2010

HEADLINE: R.I. Assembly approves new school aid formula

By Jennifer D. Jordan

PROVIDENCE - Calling it a "historic day," lawmakers Thursday passed a school-financing formula they say will more fairly distribute $850 million in state education aid to school districts and provide communities a predictable funding stream - something they have lacked for 15 years.

The formula passed after hours of spirited debate, particularly by lawmakers representing the communities that will lose state money. The bill will now go to the governor for his signature.

Supporters of the formula point out that more than 70 percent of the state's 140,000 public school students will receive more state aid under the new method, which takes into account changes in student enrollment, student need based on income and the community's ability to pay for schools. But that is cold comfort to the districts losing, in some cases, millions of dollars over a 10-year period. Charter schools also lose out under the new formula.

The formula addresses years of inequities, supporters say, and dedicates more education funding to the state's neediest students, many of whom live in urban communities and attend low-performing schools.

But to Sen. Walter S. Felag Jr. and Rep. Raymond E. Gallison Jr., who represent communities in the Bristol-Warren regional school district that will lose $8.58 million, the formula represents "the annihilation" of the district and jeopardizes high-performing Mt. Hope High School.

The formula goes into effect in fiscal year 2012 and will be phased in over 10 years. With its passage, Rhode Island is no longer the only state lacking a school-funding formula.

"The passing of this formula will transform the state, and put it on strong footing to be competitive nationally," said Rep. Steven M. Costantino, D-Providence, who submitted mirror bills with Sen. Hanna M. Gallo, D-Cranston.

"It's not a perfect formula," Gallo said. "But for the first time in a long time, school committees will be able to know how much state aid they are getting as they prepare their budgets."

Chief among the changes was an 11th-hour decision to steadily increase the state's average share of core education costs up to 52.5 percent by fiscal year 2013. On average, Rhode Island covers just 37 percent of school costs, far below the national average of 50 percent, and the proportion varies based on a community's wealth.

"I've been embarrassed that Rhode Island ranked so low in the proportion of education aid that the state paid for," said Rep. Edith H. Ajello, D-Providence, who pushed for the change.

The state assuming a greater portion of education costs adds about $15 million to the original formula proposal, which was developed by the state Department of Education. Nearly every district gets a boost, with the exception of six: Charlestown, Jamestown, Little Compton, Narragansett, Newport and New Shoreham.

Increasing the state's share persuaded more than one lawmaker to support the formula. Rep. Laurence W. Ehrhardt, R-North Kingstown, said earlier Thursday he would vote against the House bill, in part because initial projections showed his town would lose $820,000 over 10 years.

After the changes, the town will lose just $83,000, or $8,300 a year for a decade. In the end, Ehrhardt voted for the formula.

"I know there are winners and losers but I don't like to use those words," said Rep. Nicholas A. Mattiello, D-Cranston. "…If you are considered a winner, what that really means is that your district has not been receiving enough money over the past 15 years. And if you're a loser, you've been getting too much."

Other changes made to the proposal include having the state assume high-cost transportation, including busing in regional districts and for some students attending non-public schools, for $10.8 million, and offering regional districts a small "bonus" for the first two years the formula goes into effect, for a total of $1.3 million.

Lawmakers also decided to increase the proportion the state pays for school construction projects from a 30-percent minimum share up to 40 percent, a change that will yield many well-off communities millions of dollars.

Education Commissioner Deborah A. Gist said she supported the changes.

"What has happened here is that the bill has been improved by the process," she said.

Correction: An earlier version of this story incorrectly included Lincoln as one of the six towns that would not receive additional state education aid because of some last-minute changes to the formula by the General Assembly. Little Compton is one of the six communities. And the law would increase the average state share of core education costs up to 52.5 percent starting in fiscal year 2013.