RI's Program for Rehabbing Public Schools Appears to Be Underfunded By Billions

RI's Program for Rehabbing Public Schools Appears to Be Underfunded By Billions

In 2017, a blue-ribbon commission issued a comprehensive study of the cost of rehabbing Rhode Island public schools and in some cases replace the existing structures.

The cost on the low side to update the schools to a standard of “clean, safe and comfortable” was in excess of $3 billion dollars. In 2018, then-Governor Gina Raimondo rallied Rhode Island voters to support her proposed $250 million bond question.

“Tonight I'm calling on all of us to take action. Let's make a once-in-a-generation investment in our schools. Together with our cities and towns, let's commit to investing $1 billion over the next five years to fix our public schools,” said Raimondo in her state of the state speech.

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But, Raimondo’s "billion" included $70 million that was already budgeted each year by the state and an additional $350 million in match from the cities and towns.

The Raimondo $1 billion plan is looking like a drop in the bucket.

Raimondo’s math and the state’s plan was based on the plan from the commission that estimated the replacement of East Providence High School would cost $90 million, but the actual cost was $189.5 million— more than twice the estimated cost.

"I am aware that commitments for school construction projects are running ahead of projections, but have not done an analysis or spent enough time with the data to have an opinion as to whether this is problematic. It is possible that the commitments are front-loaded," said Michael DiBiase, now the head of the Rhode Island Public Expenditure Council and formerly the Director of Administration under Raimondo and a key player in the development of the 2017 report.

And, since new East Providence High School was constructed, the prices for steel and lumber have exploded driving up the costs for other school rehab and construction projects.

The cost of lumber has jumped approximately 200% in the past year, according to the National Home Builders Association.

And, steel prices have increased about 75% over the past year, but the rate of increase has recently slowed.

 

“Every child deserves to go to school in buildings that are warm, safe, dry, and equipped for 21st-century learning,” said Treasurer Seth Magaziner in April about the program. “ A short three years into the implementation of the statewide School Construction program, over $1 billion has been allocated to modernize or replace 163 school buildings with more to come.”  

Gary Sasse, the former Director of Administration for the State of Rhode Island said that Rhode Island faces crucial decisions about the costs.

“There was a Fram [Oil] Filter commercial where the mechanic says 'pay me now or pay me later.' After decades of neglect, 50 percent of Rhode Island’s public schools were rated either in very poor condition or candidates for replacement,” said Sasse.

"Rhode Island’s taxpayers are going to face significant pressure to increase spending to provide students with appropriate 21st Century public schools. The primary issue is what can be done to ensure the biggest bang for the buck and the most equitable funding.  There is no easy answer to this question, but it will require additional funding, programs maximizing the efficient use of resources, inter-district cooperation, and reorganization," added Sasse.  

According to Sasse, some options the General Assembly, RIDE and school committees might wish to consider are the following:

1. The feasibility of establishing an independent school building authority with greater oversight of school construction projects and creative/alternative financial tools should be explored. The School Building Authority is currently part of RIDE.

2. A State-supported school construction bond issue to provide at least an additional $250 million in up front funding to support projects on a pay-go basis.

3. RIDE should be proactive in encouraging the use of shared facilities for high-cost programs and facilities.

4. School facility modernization should be given the highest priority when federal American Rescue Plan COVID funds are allocated. This type of use is what President Biden had in mind when he said “build back better.”

5. Reduce the reliance on property taxes to fund school construction by increasing the minimum share of the cost paid by the State from 35% to 50% over five years.

6. Given demographic and enrollment trends consider how to maximize the reuse and value of existing buildings.

7. With state policy focused on school site management explore community-based private-public capital partnerships.

 

With the increased cost of construction, the Rhode Island school budget may be facing more than a $3 billion shortfall.