City Could Forgive $939,000 of School District Debt

The City Council votes on the matter tonight. The tentative agreement is based on the district's loss of state aid in fiscal 2010.

The School District could owe the city nearly $1 million less in deficit reduction payments after an agreement between the mayor's office and School Committee.

The City Council will vote tonight on a measure that would forgive $930,000 in district debt, spread over the next three years, reducing each year's deficit reduction payment from $1.5 to $1.2 million.

The agreement is based on the fact that the Cranston Public School district lost $930,000 in state aid in the 2009-2010 school year. The city had appropriated $124.7 million to the school district that year based on the assumption that the district would get $31 million in state aid.

But as the state budget careened into deficit, then-Governor Donald Carcieri opted to withhold the final installment of state aid to schools as part of several measures to balance the state budget. The hit to Cranston schools was $939,544.

According to the agreement, both sides agree that the plan does not violate a consent order that set up the deficit reduction plan after the school district lost its Caroulo suit.

The district made its $1.5 million deficit reduction payment to the city this past year.

The district .

Janice Ruggieri August 28, 2012 at 12:43 AM
John... just so you understand what happened this is not a forgiveness of debt. The State promised a certain amount of funding to the Schools through the City and based on that figure the City appropriated funding to the schools. When the State reneged on the full amount the City still owed that full amount to the schools. In an effort to save the City from having to now come up with the full $939,544 this year the City and School Dept. agreed to reduce the amount the Schools do owe the City from the Caruolo action by 1/3 each year for the remaining three payments of the debt.
Steven r August 28, 2012 at 04:51 PM
The bums have nothing to fear, they will get re elected.
mcam August 28, 2012 at 06:23 PM
I sure hope not!!! It is time to clean house!!!
Ross Glengarry August 29, 2012 at 03:07 PM
The taxpayers AKA residents of Cranston don't want to make a commitment in real money to Public Education. Most don't care if their children go on to higher education. Comments from people like John are so common in Cranston.John probably doesn't make more than $50,000.00 a year so how could he ever afford to live in Cranston or any city that makes a commitment to Public Education.
Steven r October 12, 2012 at 12:27 AM
Incumbents always win(Lombardi), due to name recognition. Don't be disappointed when all of them get re elected, again


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