The Providence City Council took a key step in addressing the school system’s funding gap by approving the reallocation of ARPA funds to support the state-controlled school district.
Providence’s City Council has voted to approve a series of changes that would direct approximately $4.4 million in federal American Rescue Plan Act (ARPA) funds toward helping bridge a significant budget gap for the city’s schools. The decision comes as the city scrambles to meet a $15 million financial obligation to the Providence Public School Department (PPSD), a settlement that was reached last month with the Rhode Island Department of Education (RIDE). The council’s vote on Monday was a first step, with a second vote scheduled for Thursday, Dec. 5, to finalize the reallocation.
The funds will cover almost one-third of the settlement, which requires Providence to contribute $4 million to cover the fiscal 2024 deficit and $11 million for the fiscal 2025 deficit. The move follows months of negotiation and financial planning, as the city faces pressure to address the chronic underfunding of the state’s largest school system.
Reallocation of COVID Relief Funds to Schools
The $4.4 million reallocation plan involves redirecting funds that were initially set aside for other projects, including a program designed to address racial inequities, as well as unspent allocations from other initiatives. The most substantial portion of the redirected funds—$3 million—comes from the COVID-19 Equities Program, which was originally allocated $10 million in 2022 under former Mayor Jorge Elorza’s administration. This program aimed to address racial disparities but faced criticism for not being directly tied to payments or services for residents.
Providence Mayor Brett Smiley’s office explained that this shift in funding was a difficult but necessary decision. “While this was not the original plan for the remaining COVID-19 Equities Program funding, the City has already committed $7 million to initiatives in that program, and the remaining funds will be redirected to the general fund to support additional school funding,” said Anthony Vega, a spokesperson for the mayor. “This change will help the District improve outcomes for students and support a school system that fully meets the needs of our community.”
Despite the criticism that some of the funding will no longer be used for reparations-related efforts, the mayor’s office maintains that the overall goal is still aligned with addressing inequities and investing in the future of the city’s youth.
A Swift Approval, But Questions Remain
Monday’s meeting, which lasted only five minutes, included little debate. Councilor Helen Anthony, chair of the Committee on Finance, emphasized the urgency of the reallocation, noting that the funds must be allocated by the end of December to meet the required deadlines. “These funds have to be covered by the end of December, this month… So we cannot hesitate. We need to take the action,” she said.
The motion passed unanimously, with only a few councilors absent from the meeting. The reallocation plan had already been approved by the Finance Committee on Nov. 26, and the special session was called to expedite the process, ensuring that no federal dollars would go unused.
The decision to divert funds from other city projects has not been without its concerns. For example, $1 million that had been set aside for the redevelopment of the Cranston Street Armory is now being redirected toward the school settlement. In total, funds from other underfunded projects and leftover allocations are being restructured to meet the city’s immediate obligations to the school system.
The Big Picture: A Deal with RIDE and School Funding
Providence’s financial obligations to its public schools come from the settlement with RIDE after a state court ruling in early November. Judge Jeffrey A. Lanphear had ruled that the city was legally required to contribute more funding to the schools under the Crowley Act, which authorized the state takeover of Providence’s schools in 2019. The court’s ruling could have led to a much larger financial burden on the city, with estimates as high as $55 million. However, the negotiated settlement capped the city’s contribution at $15 million, a figure still challenging for the city to meet.
The settlement is part of ongoing efforts to address the long-standing financial difficulties of the Providence Public School District. While the city hopes that the ARPA funds will cover a significant portion of the shortfall, the question remains whether further measures will be needed to fully stabilize the district’s finances. The second vote on the reallocation of the ARPA funds on Dec. 5 will be a crucial step in ensuring that Providence can meet its obligations.
Looking Ahead: How Will Providence Handle Its Budget Shortfall?
The future of Providence’s education system depends on the success of this reallocation and any further steps taken by the city to address its fiscal challenges. The settlement with RIDE, while a significant step, may not be the final word on how the city handles its school funding issues. Advocates for Providence’s public schools are already calling for additional financial support and continued oversight of the district’s operations to ensure that the needs of students are met.
The City Council’s quick action and the decision to repurpose ARPA funds for education demonstrate the city’s commitment to its schools, but the pressure will remain high in the coming months to ensure that Providence’s school system remains fully funded and able to serve its diverse student population.
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