PROVIDENCE – The city will owe an additional $26.5 million to the Providence Public School District over the next three fiscal years, including $4 million more this current fiscal year, as part of
a settlement agreement the two sides reached back on Nov. 20, the city, district and the R.I. Department of Education announced Friday.
The details come more than two weeks after R.I. Superior Court Judge Jeffrey Lanphear ruled in favor of RIDE and R.I. Education Commissioner Angélica Infante-Green over claims from state education officials that the city violated the Crowley Act. The act requires that municipal funding for school districts currently under state control must be increased by the same percentage as the increase in statewide school aid.
According to the settlement agreement, $4 million more will be paid by the city in the current fiscal year, bringing the city’s funding total to PPSD to $134 million. In the 2025 fiscal year, the city will pay an additional $11 million to PPSD, putting the city’s contribution toward the schools at $146.5 million.
City officials say that the $15 million additional funding over the next two fiscal years to be paid to PPSD will be:
- $5 million from legal accrual
- $4 million in reallocated general revenue, which replaced funds with American Rescue Plan Act revenue recovery
- $3 million in energy credits
- $2 million in cuts, including reductions in hiring, overtime and essential spending
- $1 million from a payment in lieu of taxes agreement
For the 2026 fiscal year, the city will contribute $147 million to PPSD, which is an $11.5 million increase from the city’s original $135.5 million FY2025 allocation. In the 2027 fiscal year, the city will contribute at least $147 million toward PPSD, plus a percentage increase matching the increase in total state educational aid in that fiscal year.
Providence Superintendent Javier Montañez said Friday in a letter to the community that big cuts to school programing, including to winter and spring sports and RIPTA bus passes, will be avoided. The funding, he says, will also help PPSD secure essential special education teacher positions, continue English as a second language certificate reimbursements for educators, avoiding furloughs and preserve the district’s capital fund for any building needs.
“The agreement we have reached with the city of Providence for additional local funding for PPSD in the coming years has positioned PPSD for greater stability and future success,” Montañez said in a statement. “As superintendent and a Providence taxpayer, parent, and grandparent, my work is guided by what is in the best interest of students, and this agreement will ensure we avoid cuts to vital services and programs our children rely on. I am deeply appreciative of city leaders’ partnership to reach a compromise that will benefit students across the capital city. This is a step in a positive direction for our community and I am encouraged that the District is now in a better position than it was yesterday.”
Major cuts will be avoided on the city side as well. Josh Estrella, spokesperson for Mayor Brett P. Smiley, said in an email Friday to Providence Business News that the city does not expect to lay off employees as a result of this settlement. Also, other possible cuts to city programming, such as additional police patrol, PVDFest, the Fourth of July Celebration, New Year’s Eve festivities, libraries and recreation, are all off the table, Estrella said.
The city’s hiring and nonessential spending freezes, as well as reduced overtime, are still in effect through the end of this fiscal year, Estrella said. He also said any tax increase will be done in the next fiscal year.
“We [also] plan to seek General Assembly approval to raise the levy to allow Providence to go over the cap one-time for the purpose of funding our schools,” Estrella said.
(UPDATED throughout to include comment from both Josh Estrella, spokesperson for Mayor Brett P. Smiley, and Providence Superintendent Javier Montañez.)
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on X at @James_Bessette.