Providence and State Release Details on School Funding Settlement

Providence and State Release Details on School Funding Settlement

Providence Mayor Brett Smiley and the Rhode Island Department of Education (RIDE) issued a joint press release on Friday regarding the settlement resolving the city's failure to make its mandated payment to the Providence Schools.

The increased contribution equates to more than $30 million for Providence taxpayers.

The settlement agreement, which spans four fiscal years, was reached after the parties engaged in months of mediation and close negotiations over the last week after a ruling from Rhode Island Superior Court Associate Justice Jeffrey A. Lanphear. As part of the agreement, the City of Providence will provide PPSD: 

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An additional $4 million for Fiscal Year 2024, bringing the City’s total contribution for that fiscal year to $134 million; 
An additional $11 million for Fiscal Year 2025, bringing the City’s total contribution for that fiscal year to $146.5 million; 
A $147 million total contribution for Fiscal Year 2026 (which equates to an $11.5 million increase from the City’s initial allocation for Fiscal Year 2025 of $135.5 million); and 
A $147 million base contribution for Fiscal Year 2027, plus a percentage increase matching the percentage increase in total State educational aid in that fiscal year. 

Tax Increase

On Wednesday, Smiley announced that a deal had been agreed to in principle but refused to disclose the details.

Smiley faces a budget crisis and admits that the city may have to implement a mid-year tax increase to address the financial shortfall.

This would be the first mid-year tax hike since the late Vincent “Buddy” Cianci, Jr. was Mayor of Providence — the first time before he was convicted of his first felony — since 1981.