Providence’s Finances at “Serious Risk” After Court Ruling on School Funding

Providence’s Finances at “Serious Risk” After Court Ruling on School Funding

A decision by Superior Court Judge Jeffrey Lanphear on Friday to withhold potentially millions in state funds from the city of Providence is setting up a potential budget meltdown for the city. The case before Lanphear centers on Providence providing the necessary funding to the schools as required under state law, specifically the so-called Crowley Act.

The Crowley Act is the state law that governs during a school takeover and dictates the funding requirements. The state took over the Providence schools in 2019.

City Council President Rachel Miller said in a statement after the decision, “This is a striking decision from the court that puts city finances at serious risk. The City Council is dedicated to righting historic wrongs and funding our schools – as demonstrated by this year’s historic single-year increase to school funding in at least 15 years.”

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But while Miller was issuing a warning on the decision, Rhode Island Department of Education Commissioner Angélica Infante-Green and Providence Superintendent Dr. Javier Montañez applauded the decision. 

“Today’s Court ruling is a win for our kids. Our priority throughout this legal dispute has been clear: making sure Providence students, teachers, and school communities have the proper resources they need and deserve. The Rhode Island Department of Education and Providence Public School District are grateful that the Court ruled in the favor of ensuring the District has access to municipal aid which will help lessen the impact of projected cuts to critical student services, programs, and staff support that would have a devastating impact on the education of Providence students,” the two said.

Providence schools have performed poorly under the management of the Rhode Island Department of Education and Montañez.

Miller challenged the state’s actions. “The Council has opened the door and invited a true partnership – we’ve asked to get the full understanding we need of PPSD’s budget and spending in order to responsibly continue a conversation about allocating further funding. Rather than embracing this demonstrated commitment, the state has repeatedly chosen an adversarial route, including taking drastic court action that threatens the financial stability of our city.”

It is unclear where Governor Dan McKee is on the issue and the potential economic impact on the City of Providence. He has not issued any press releases on the conflict between RIDE and the City.    

“While RIDE does not have to consider the impacts of cuts to critical city services or tax increases on a struggling community, we do, and the families of PPSD students do as well. It is shortsighted to ignore devastating cuts – whether they be in our school communities or in our neighborhoods – affecting our kids, public safety, and basic programs. The City Council has offered a hand to move us forward together, instead we’re facing what comes next with deep disappointment, knowing there were better collaborative ways,” added Miller.   

“Meanwhile, PPSD continues to budget public money in secret, and now threatens to cut sports and bus passes and deprioritize special education and multilingual learners despite Department of Justice mandates. Last year, PPSD irresponsibly ended the year with a $20 million deficit, recklessly threatening current and future city funding for PPSD and for city services.  Now, the state is reaching into the city’s pockets to finance their missteps, not based on a mutual understanding of what PPSD needs for students to succeed but on a zero sum aim to win a political fight. We have an obligation to safeguard taxpayer dollars with transparency. We have a goal to fund our schools and city services, to move us forward on a path to prosperity for all students and families. The actions taken by RIDE move us further away from those aims. Why should Providence taxpayers be forced to bankroll an opaque and irresponsible budgeting process that treats students and families as collateral damage?” Miller concluded. 

Per the rulings, the Court will hold another hearing next Wednesday to determine the amount the City of Providence will need to fund PPSD for Fiscal Years 2024 and 2025.