Concerns remain about funding in new fiscal year

By DONNA KENNY KIRWAN

PAWTUCKET — The passage of the recent municipal operating budget, which included an increase of 8.2 percent in the tax levy, allowed the city to avoid a potentially costly Caruolo Action from the School Department to obtain additional school funding for the fiscal year which ended on Tuesday.

However, with a School Department deficit of over $8 million already being projected in the new fiscal year’s budget, which began Wednesday, both school and city officials are expressing grave concerns about where this funding will come from.
Stephen M. Robinson, attorney for the School Department, acknowledged he expects that the suit filed in April to be formally withdrawn within the next week or two. He said that the current budget provided “a resolution” which will allow the School Department to balance its budget for the fiscal year that just ended.
Robinson said that the resolution was one which came from discussions with the city’s administration, financial director, and school officials, as well as discussions with the state auditor general. He added, however, that he, along with countless other school officials and municipal leaders, is hoping for a dramatic change in the way education is funded in the state so there will be no need to put forth another Caruolo lawsuit for this year.
In April, the School Committee filed a lawsuit in Providence Superior Court, under the Caruolo Act, seeking an increase of up to $5.63 million in the school budget for the FY09 fiscal year. The complaint named the members of the Pawtucket City Council, Mayor James Doyle, and finance director Ronald Wunschel as defendants.
It was stated in the suit that the $5.63 million figure would cover a $5.13 million school budget deficit and another $500,000 in anticipated expenses to prosecute the legal action.
Since that time, city leaders crafted a budget for the fiscal year 2010 that used $2.1 million from the city’s reserve fund account to help pay for the $5.63 million school deficit and built $3 million into the new property tax rate increase. According to city Finance Director Ronald Wunshcel, 70 cents of the $1.65 residential property tax rate increase is to cover the school budget deficit.
The School Department reportedly made up the rest of the shortfall with cost-cutting and projected money saved through retirements and other measures.
Since the new budget went into effect, numerous city residents have complained bitterly about the spike in their tax bills. While the increase was projected as being 8.2 percent on the tax levy, it was calculated on a “current” rate of $16.30 that took into account the recent citywide property revaluation. However, when compared with the old, pre-revaluation rate of $12.39, the increase on people’s tax bills was substantially higher — as much as 20 percent in some cases.
Robinson, speaking on behalf of the Pawtucket School Department, acknowledged the financial pain that is being felt in Pawtucket, and the grim outlook for the months ahead. “All parties are looking at the coming fiscal year with a lot of dread,” he stated.
Yet, Robinson, like countless others involved in municipal affairs, also points to the all-important need to revamp the way the state allocates its education funding. “It’s a disgrace the way the state distributes its education funds,” Robinson stated. “Rhode Island is the only state without an education aid funding formula.”
Robinson also said that Pawtucket School Committee members have indicated a willingness to join other municipal leaders in whatever legislative efforts can be made to change the current funding method. He pointed to recent legislation filed by Woonsocket school officials calling for the state to provide adequate funding for every child, and said that Pawtucket school officials could potentially join in this or another such action to show their support for change.
As evidence of the painful school budget year that lies ahead, Mayor Doyle recently responded to a May 27 letter from Schools Supt. Hans Dellith in which Dellith had outlined the potential $8 million deficit and asked the mayor if the city is prepared to fully fund its schools.
In a letter dated June 19, Doyle wrote back reminding Dellith of the loss of state aid in 2009 and 2010 and said the city had to lay off workers, seek union concessions and institute 12 furlough days. He further said he was aware that the Pawtucket Teachers Alliance had indicated, in a letter to attorney Robinson, a willingness to discuss the possible renegotiation of their collective bargaining agreements, and told Dellith, “I urge you to pursue this matter.”
Doyle wrote that the city has used its reserve fund balance to address several past school deficits, but said that after funding the 2009 deficit, the reserve funds will be totally depleted. “The School Department must explore every option to cut expenses,” stated Doyle, in his letter. He further wrote, “I do not foresee the Pawtucket City Council approving the $1.86 tax increase necessary to support your projected $8,045,280 School Department deficit.”
Charlene Christy, president of the Pawtucket Teachers Alliance, acknowledged that she was fully aware of the city’s budget situation and said she had been upfront in her letter to Robinson. “We have always been sensitive to the financial position of the city,” said Christy. While stopping short of saying the teachers’ contract, which has a year remaining, might be re-opened, she did indicate the union’s willingness to engage in discussions about the issue. However, Christy said she has yet to be contacted about this by anyone.
Christy pointed out that Pawtucket teachers have traditionally been paid salaries that are among the lowest in the state. “I think that out of 36 communities, we’re at the 34 or 35th lowest salaries, she stated.
On Tuesday night, Christy was present at the School Committee meeting in which 24 teachers were recalled for the coming school year. Last spring, 78 teachers had been issued “pink slips” due to budget cuts. Since that time, there were two other rounds of employee recalls approved by the School Committee.
Following the latest rehiring, there are just six teachers left who are still without jobs for September. However, pending further retirements or other staffing changes, some or all of these six could  potentially be called back over the summer.
“Central Administration is doing all it can in getting teachers back, while still taking a conservative approach and trying to be responsible, said Christy. She said the administration has consolidated courses and programs and has pushed class sizes to the maximum in order to save money. The half dozen teachers who were not called back were largely those whose subject or service area was either being duplicated by someone else or was no longer needed, she said.