A Critique of the 2010 Funding Formula

  1. The 2010 Formula’s “core instruction amount” of $8,922 is inadequate because it does not include, among other things, operating and “other” expense. These costs amount to approximately 20% of the typical school district’s budget. As a result, these costs must be paid for with 100% local funds, with none of the cost-sharing of Step 3 of the formula. In contrast, the 2007 Working Group report recommended a base amount of $10,600, which would be higher today after accounting for increases in the cost of living over the past eight years.
  1. The 2010 Formula’s single adjustment of 40% for children who qualify for free or reduced price lunch (FRPL) does not account for the extra needs of children learning the English language. The consultant justified this at the time by saying that the two populations (FRPL children and ELL children) are closely correlated. This is not the case in Rhode Island. For example, in 2012, the relative populations in selected communities was as follows:

 

Community FRPL % Hispanic ESL/Bilingual
Burrillville 25% 1% 0%
Central Falls 75% 70% 22%
Cranston 26% 13% 4%
East Providence 37% 5% 3%
Johnston 31% 9% 2%
Newport 50% 16% 3%
North Providence 29% 12% 2%
Pawtucket 67% 30% 10%
Providence 82% 59% 15%
West Warwick 40% 9% 2%
Woonsocket 64% 24% 4%

For this reason, the 2007 Task Force developed a formula with an additional 0.2 weight for ELL students based on its consultant’s research. This weight was additive to a poverty weight of 0.25 for reduced price lunch and .5 for free lunch.

As shown on the Quadratic Mean Table, the quadratic mean transfers state aid from some of the State’s poorest communities to its wealthiest ones.

The following table highlights some of those transfers.

Community Adjusted
EWAV
Share %
(SSRC)
FY 2015
Actual Share(Including Quadratic Mean)
Quadratic
Mean % Impact
FY 2015
Formula Aid
Quadratic
Mean $
Impact
Charlestown 0.0 18.7 18.7 1,708,666 1,708,666
Jamestown 0.0 8.6 8.6 399,684 399,684
Little Compton 0.0 13.7 13.7 401,928 401,928
Narragansett 0.0 16.9 16.9 1,987,115 1,987,115
Newport 0.0 46.7 46.7 10,368,288 10,368,288
New Shoreham 0.0 9.5 9.5 82,308 82,308
Westerly 0.0 28.7 28.7 7,620,088 7,620,088
Shore Communities 0.0 22,568,077 22,568,077
Pawtucket 85.8 83.3 -2.5 74,103,107 -2,223,983
Providence 85.5 88 2.5 213,028,339 6,051,941
West Warwick 70.9 62.7 -8.2 20,973,995 -2,743,011
Woonsocket 88.5 84.2 -4.3 50,568,580 -2,582,481

When it was proposed, the quadratic mean was presented as a way to help all communities afford the extra cost of educating children in poverty. In fact, however, the quadratic mean’s aid per student in poverty increases as the community’s wealth per student increases, as this chart shows:

A B C D E F G H I J
Community Adjusted
AEWAV Per Student
AEWAV
Base Ratio
Adjusted
EWAV Share %
FY 2015
State Share %
Quadratic
Mean % Impact
FY 2015
Formula Aid
Quadratic
Mean
$ Impact
FY2015
FRPL
Quadratic
Mean State Aid Per Child
Charlestown 2339.6 2.6 0.0 18.7 18.7 1,708,666 1,708,666 250 6835
Jamestown 3768.2 4.2 0.0 8.6 8.6 399,684 399,684 67 5965
Little Compton 6011.6 6.8 0.0 13.7 13.7 401,928 401,928 58 6930
Narragansett 4081.5 4.6 0.0 16.9 16.9 1,987,115 1,987,115 313 6349
Newport 2737.6 3.1 0.0 46.7 46.7 10,368,288 10,368,288 1212 8555
New Shoreham 22083.8 24.8 0.0 9.5 9.5 82,308 82,308 16 5144
Westerly 2018.4 2.3 0.0 28.7 28.7 7,620,088 7,620,088 1172 6502
Shore Communities 3122.5 3.5 0.0 22,568,077 22,568,077 3088 7308
State 888.9 1.0
Pawtucket 265.2 0.3 85.8 83.3 -2.5 74,103,107 -2,223,983 6555 -339
Providence 271.1 0.3 85.5 88 2.5 213,028,339 6,051,941 19791 306
West Warwick 544.3 0.6 70.9 62.7 -8.2 20,973,995 -2,743,011 1816 -1510
Woonsocket 214.5 0.2 88.5 84.2 -4.3 50,568,580 -2,582,481 4565 -566