NEW: Bill Would Provide Relief to Towns Supporting Regional School Districts
Wednesday, May 30, 2012
Taxpayers in towns that belong to regional school districts could get a break under legislation sponsored by Sen. Paul W. Fogarty.
The bill (2012-S 2757) would exclude debt service that has been paid off to be excluded from regional school districts’ towns’ “maintenance of effort” requirement that determines what municipalities must pay toward their students’ educational costs.
Under the school funding formula law, cities’ and towns’ annual local contribution to their schools’ funding cannot dip below 95 percent of what it was in 2009.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTHowever, that system does not take into account non-recurring capital expenses or building project bonds that have since been paid off. For example, the Foster-Glocester Regional School District is currently paying debt for construction of its middle school and improvements to its high school and was doing so in 2009, so its maintenance of effort requirement would include that funding. Years from now, when the district has finished paying for those projects, it would still be banned from contributing any less toward its schools than 95 percent of what it was paying in 2009, when it was paying that debt. Currently, a district can ask the Commissioner of Education for an exemption from the requirements in those situations, but the district cannot count on approval.
Senator Fogarty’s bill would allow towns that send students to regional school districts to calculate their local contribution based on 95 percent of the 2009 figure, minus their share of debt service that has been paid off since then, or other non-recurring capital project expense that it no longer has.
The bill would free up town money otherwise locked into maintenance-of-effort funding requirements for regional school districts. This money could be used for other town needs or potentially to reduce property taxes. Additionally, this proposed change allows town budget committees and councils to actually count on specific savings that may or may not be approved by the Commissioner of Education in the same budget year.
“Cities and towns are under enough financial pressure without being required to continue paying for capital projects that have been completely paid off. It’s usually a squeeze for cities and towns to fund building projects, and when the project is paid for, they should be allowed to stop squeezing,” said Senator Fogarty (D-Dist. 23, Glocester, Burrillville, North Smithfield.)
The legislation passed the Senate on May 2 and has been transmitted to the House, where it was assigned to the Finance Committee.
