Results Education in Rhode Island 1999: Executive Summary

I. Executive Summary
Throughout the 1990s RIPEC has published the Rhode Island Education Results report, providing information on elementary and secondary education revenues, expenditures and select test scores at both the State and local school district levels. The following report, like the ones preceding it, reflects the Council's interest in and commitment to the Ocean State's public education system. RIPEC members believe there are few, if any, issues of greater importance to the economic and social wellbeing of Rhode Island communities than the education of its children.
 
Revenue
At both the State and local levels, public education is commonly recognized as one of the highest priorities. At the local level, over 52 cents of every dollar raised through property taxes goes to public schools, while State government devotes over 25 percent of all general revenues toward elementary and secondary education.

In 1997-98 Rhode Island governments - State and local - devoted over $1.1 billion to the operation of public schools. The majority of this revenue was derived from municipal property taxes, which accounted for most of the $669.4 million, or 60.6 percent, provided by local governments. State aid for elementary and secondary education exceeded $437.4 million (39.4%), although this figure does not include State assistance for housing aid, teacher retirement, and other special accounts. The Federal government provided approximately $47.6 million for elementary and secondary education in 1997-98.

State government's share of public education expenses used to be based on a two-year reference, meaning local education expenditures incurred in FY 1993 were reimbursed by the State in FY 1995. Using this method to measure the State's share increases the State's percentage to 43.5 percent in FY 1998, down from a high of 51.7 percent in FY 1990. Although the State no longer uses this formula to distribute education funds, it is still commonly used to estimate the State's share of education expenditures.

From fiscal year 1990 through fiscal year 1999 (budgeted), State assistance to local school districts (again, excluding housing assistance and teacher retirement payments) increased by over $167.0 million (53.4%), from $312.5 million to $479.5 million. When housing and retirement aid are included, State aid for education grew by $189.7 million, from $346.5 million in FY 1990 to a budgeted level of $535.7 million in FY 1999 (an increase of 54.6%). This appropriation represents over 26 percent of State general fund revenues appropriated in FY 1999.

Local property taxes devoted to public education increased $254.9 million (63.6%), from $401.1 million in FY 1990 to $656.1 million in FY 1998. The amount of local property taxes used for public education varies by community. In FY 1998, 14 communities appropriated over 65 percent of property taxes for education while four communities spent less than 40 percent of local property taxes on public schools.

Expenditures

Rhode Island remains ranked among the top states in the country based on per pupil expenditures. During the 1996-97 school year Rhode Island exceeded the national per pupil spending average by over $1,500 - spending $7,876 per student compared to the U.S. average of $6,327. States located in the northeastern region of the country, however, spend more per pupil than any other region. In New England the average per pupil expenditure was $7,760, while Mid-Atlantic states spent an average of $8,841 per student.

The State's 1996-97 expenditures per student were 25 percent above the national average, placing the Ocean State 5th in the nation. Rhode Island's national ranking in per pupil expenditures remained relatively unchanged from FY 1990, at which time the State placed 6th in the U.S.

From 1990 to 1998 statewide education expenditures increased by $400.5 million, from $756.5 million to $1,157.0 million, an increase of 52.9 percent. During this time expenses for special education programs and limited English proficiency (LEP) programs grew by over 100 percent. Special education expenditures increased from $96.6 million to $199.5 million, and LEP spending increased from $12.0 million to $26.2 million.

Enrollment

While expenditures have grown, the number of students attending Rhode Island's public schools has increased as well. From 1990-91 to 1997-98 enrollments climbed by 10.5 percent (14,470 students), from 137,907 to 152,377.

The change in Rhode Island's classrooms has not occurred evenly across the State. For example, while the Exeter-West Greenwich School System's student population grew by 47.5 percent (673 pupils) and Providence added over 4,700 students (22.5%), the Newport School System experienced a 15.8 percent reduction (556 students) and Middletown's enrollment dropped by 8.2 percent (256 students).

Along with the increase in enrollments has come a change in the demographic makeup of the student body. Today's classrooms have a greater percentage of students enrolled in special education and limited English proficiency (LEP) programs, and significantly more students eligible for free or reduced lunch (from 23.0% of all students in 1990-91 to 32.3% in 1997-98).

The demographics of each school district also varied considerably, with the more urbanized communities enrolling a greater percentage of students eligible for free or reduced lunch and enrolling a greater percentage of students in LEP programs.

In 1997-98 the Central Falls, Pawtucket, Providence and Woonsocket school districts enrolled 45,154 students (29.6% of the State's total). Two-thirds of these students were eligible to receive free or reduced lunch (30,613 students) and 16 percent (7,241 pupils) were enrolled in LEP programs. All other school districts in the State enrolled 107,223 students, of which 17.4 percent (18,605 students) were eligible to receive free or reduced lunch and less than two percent (2,007 students) were enrolled in LEP programs.

Educational Achievement

In terms of educational achievement, based on indicators used in this report (i.e., Scholastic Assessment Test and National Assessment of Educational Progress), Rhode Island continues to trail other New England states as well as the U.S. average. In 1998 the State's average SAT score was the lowest in New England, a trend that has continued unabated throughout the 1990s. The State's 1996 fourth grade and eighth grade NAEP mathematics assessments were also below other New England states and below the national average.

Between 1990 and 1998 SAT combined scores (verbal and math) in Rhode Island improved by ten points, although Rhode Island's average SAT combined score in 1998 was still at least ten points below every other New England state's average score. In 1996, 17 percent of Rhode Island's fourth graders received scores considered proficient in mathematics on the NAEP exam, compared to the U.S. average of 21 percent. Also in 1996, 20 percent of Rhode Island's eighth grade students received scores considered proficient on the NAEP mathematics assessment, while the U.S. average was 24 percent.

Despite these low rankings, there have been several positive trends during the past few years. From 1995 to 1998 the average SAT combined score improved in 16 school districts, and the State's overall average SAT combined score increased four points. Results from the fourth grade Metropolitan Achievement Test (MAT) math assessment from 1993 through 1998 show a 10 percent reduction in the percentage of students considered "at risk" (i.e., students scoring in the 39th percentile or below). Twenty-four of 34 districts reduced the percentage of students in the "at risk" category. During this same time the average math assessment test score improved in 21 school districts.

The State is moving away from the traditional multiple-choice tests and toward performance assessments designed to measure both basic and advanced skills. These new assessments were given to eighth and tenth graders in 1996-97 and 1997-98. While this RIPEC report provides information on the 1997-98 results, a review of the Rhode Island Department of Education's publication, "Information Works!," reveals an overall improvement in test scores over this two-year period.

Eighth grade test scores in the math concepts portion of the New Standards Reference Exam (NSRE) improved in 30 of 33 districts, and the State's average score improved by 13 percent. Results from the tenth grade math skills portion of the NSRE over the first two years also showed improvement, with 25 of 32 districts raising their average score. At the same time, the percentage of students with scores that fell below the standard declined by over 25 percent.

In addition, according to the recently released "Higher Education Report Card," data compiled in the fall of 1996 revealed that over 65 percent of the Ocean State's high school graduates enrolled in college. This placed Rhode Island 5th in the nation, above all other New England states but Massachusetts.

The recently released Education Week overview of the states, "Quality Counts," ranked Rhode Island 42nd in standards, assessments and accountability, 20th in efforts to improve teacher quality, eighth in school climate, 15th in adequacy of funding, 23rd in equity of funding and fourth in the allocation of funding. Rhode Island's funding equity rating, however, was based on 1994-95 data, and may have changed considering the recent targeting of additional State funds to less affluent communities.

RIPEC Comments

One of the issues identified in this report, as well as previous RIPEC education reports, is the difference between the State's most urban school districts and the rest of Rhode Island. As is true with enrollment trends, test scores among school districts show considerable variation. Table A at the end of this section ranks the State's 36 school districts based on ten indicators, such as general instruction expenditures per pupil, student performance and local tax capacity. The table reveals a dichotomy between the State's more urban districts and those school districts located in the less urban areas of Rhode Island.

The four urban school districts - Central Falls, Pawtucket, Providence and Woonsocket - are ranked below almost all of the less urban districts in average test scores, average attendance rates and the amount of general instruction expenditures per pupil. According to the Rhode Island Office of Municipal Affairs, all four districts are less able to raise local revenue to fund education and other municipal obligations (tax capacity and effort index).

These districts enroll a greater percentage of students from limited income families and limited English-speaking homes. In addition, these districts are faced with a continually changing student population, with students entering and exiting the school district at a faster pace than the rest of the State (mobility rate indicator).

State leaders have begun to focus on the myriad of issues facing Rhode Island's urban communities and the State's urban-based schools - including increased education aid targeted to urban school districts. The State is making strides to improve Rhode Island's elementary and secondary education system. Legislative initiatives calling for the establishment of statewide academic performance standards and improving school district's accountability are important and must be fully implemented.

To support and build on recent efforts to improve Rhode Island's public schools, RIPEC offers the following comments:

• To ensure a dependable and predictable source of financial assistance for local school districts, the State should reestablish a statutory education funding formula. This formula should take into consideration each district's ability and effort to raise revenue, the particular needs of the district's students, and be aligned with performance-based reforms. In addition, the State should establish clear policy targets regarding its role in funding various public education programs.
• The State should stay the course and fully implement Article 31, which links education funding to student performance and promotes greater accountability.
• The State and local school districts should ensure that the necessary resources are made available and efficiently utilized to allow the recent education reform measures to be fully implemented.
• The Board of Regents and the Commissioner of Education are to be commended for their ongoing efforts to establish performance standards and meaningful student assessments. These standards and assessments, along with the valuable school-specific information provided by the Department of Education, should continue to be widely publicized and used to influence policy that seeks to improve public education.
• The Department of Education should continue implementing the uniform financial reporting system to more accurately track educational expenditures in all school districts. Full implementation of this system should be useful in allowing schools, districts and the State to identify and apply resources in ways to meet goals and improve student performance.
• School districts should explore ways to work cooperatively and consider joint purchase agreements for supplies and services in order to reduce expenditures for non-instructional activities.