Independent Analysis Details Providence School Finances

Published on Friday, December 13, 2019

PROVIDENCE, R.I. - The Rhode Island Department of Education (RIDE) today released the results of a financial analysis of the Providence Public School District (PPSD). This 10-week deep dive, conducted by the globally-respected firm Ernst & Young LLP, paints a picture of a district where the status quo has kept investments from reflecting student needs.     

“Students need to be at the center of every conversation and every decision, and our district budget is no exception. The needs of our school community have continued to evolve, but the PPSD budget has clearly not kept pace,” said Angélica Infante-Green, Commissioner of Elementary and Secondary Education. “We’re pleased to see that the district is in a better financial position than previous estimates, and this analysis gives us a tool to ensure that funding is being used more efficiently and effectively in the best interest of all students.”   

Through extensive analysis of budget and personnel data, as well as in-person interviews, Ernst & Young observed a pervasive belief that the vast majority of district spending is fixed, and that the district has very little flexibility to make meaningful change.    

RIDE will work with PPSD to change that mindset and shift funding closer to the students, enhancing the ability of school leaders to create and implement budgets that empower them to be effective instructional leaders. Currently, less than 4 percent of funds allocated to schools are in the control of school leaders.   

“At the same time that the state is shifting closer to a school-based management model, it is critical that we use this opportunity to build a PPSD budget that empowers educators on the ground. Funding must be used in a way that delivers for students and families,” said Barbara S. Cottam, Chair of the Board of Education. “We need to seize upon opportunities for efficiencies identified in the Ernst & Young report and use the additional flexibility to reimagine what is possible in the district. Our investments must reflect student needs.”   

To help reframe the fixed way of thinking, Ernst and Young created a fresh approach to the PPSD budget framework. This framework would increase transparency and map every line of the $450 million budget to six major categories: central office, school supports, schools, facilities management, non-public student costs, and retiree benefits. 

“The team from Ernst & Young has created a clear and compelling picture of the district’s financial condition and its areas of needed investment. I am confident that this report will help us improve the district’s budget process and inform budgetary decisions moving forward,” said Dr. Fran Gallo, interim superintendent for PPSD.  

Another key finding of the 67-page report, which was paid for by The Partnership for Rhode Island, is that schools have varying degrees of student need, but not enough flexibility to meet their particular needs. By all accounts – including the Johns Hopkins and Great City Schools reports earlier this year – the district continues to struggle to meet the needs of its growing population of multilingual learners, in particular. 

Teacher vacancies, for example, are far higher for English Learners (EL) and special education positions than for general education.  In particular, the recommendations included in the analysis suggest that PPSD may need to significantly increase the number of certified ESL teachers.  

“We need a deeper bench of world-class talent; it’s as simple as that,” said Infante-Green. “We have some wonderful teachers in the district, but they can’t do this work alone. We need to attract people into the profession, recruit highly effective teachers into the district, prepare more existing teachers in priority areas like EL and special education, and consider teacher diversity in all of these avenues and beyond.”  

In addition to a lack of flexibility and a need for reinvestment in growing student populations, the report highlights several other key findings:  

• The district’s financial position is more positive than previous estimates. In 2018, the City of Providence projected a $22 million deficit in PPSD by 2021. Ernst & Young estimate a significantly lower figure of $3 million to $5 million.   
• The needs of PPSD school facilities are tremendous, due in part to many years of deferred maintenance, as well as a more-expensive-than-average custodial contract.   
• Central office and transportation costs are the fastest growing components of the budget, outpacing facility investments and school budgets. Providence spends 40 percent more per pupil on student transportation than benchmarked Rhode Island districts.  
• Benefits are also out of line with benchmark communities, with Providence leading the relevant state benchmark districts in pension and retiree medical.  

Ernst & Young will be available for a technical call with reporters, on background only, on Friday at 9:30 a.m. Please note that this call is for background purposes and the individuals joining the call should not be quoted. Reporters interested in joining that call should e-mail Megan.Geoghegan@ride.ri.gov for details. Commissioner Infante-Green will also be available to the media for additional comment on Friday at 11 a.m. at RIDE, 255 Westminster Street in Providence.  

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