City Could Forgive $939,000 of School District Debt

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 .