Newport School Department
Newport, Rhode Island

02840

IMPACT AID - SUMMARY

The following are pertinent points of information concerning the Impact Aid Tables enclosed.

1.

Impact Aid has relieved some of the burden of local taxpayers over the years in which it has been received.

2. While the amount of money received for the (a)'s in 1966-67 was 64.52 percent of the per pupil cost and the (b)'s was 32.26 percent of the per pupil cost, both those percentage contributions dropped when compared with 1975-76 figures of 44.30 percent and 20.26 percent respectively.

3. A comparison of the percentages of local, state, and Impact Aid share of the per pupil cost in the ten year period starting 1966-67 indicates the continued downward trend of the percentage of cost that has been provided in an economy which has continued to inflate.

4. Using 1975-76 figures the burden of the 1,674 eligible children represented by 36.40 percent of the total enrollment in Grades K-12 has been shouldered disproportionately by the local taxpayer.

5. In Newport, Category (a) pupils average payment per student was $771.15 while the cost of education was $1,740.72 per student per year. Rhode Island provided $405.28 of the per pupil cost, meaning that local sources had to provide $564.29 per student.

Category (b) average payment provided $352.64 while the cost of education was $1740.72 per student per year. Rhode Island provided $580.22 of the per pupil cost meaning that local sources had to provide $807.86 per student.

6. To replace 1975-76 Impact Aid with local funds would mean an increase of about $3.32 per $1000 valuation of the local taxpayers.

7.

For Fiscal Year 1975-76 income from all sources for education was as

follows:

Approximately 52% of the available property in Newport is not taxable being owned by federal and non-profit organizations.

8.

9. The total taxable property in the City of Newport was valued at $200,000,000 in 1974. This represents 2,860 acres of land with buildings. The U.S. Government occupies approximately 400 additional acres of land which have been estimated to be valued at $28,000,000 (this is land only without structures). Based on the most recent data available, this 400 acres if taxed on land alone would yield approximately $100,000 in additional taxes. The 400 acres in question are primarily water-front property which, if developed by local interests, could easily yield over $1,000,000 in additional tax revenue.

10. The increase in numbers of (b)'s from 700 in 1974-75 to 1156.12 in 1975-76 is deceptive. In prior years, Newport has not received the full amount of its allocation. It has averaged somewhere around 80 to 90 percent on (a)'s and 50 to 75 percent on (b)'s. Starting with the 1975-76 school year and the addition of the lowrent housing (b)'s, the percentage of allocation for (a) students dropped 5 to 10 percent and for the (b)'s (without the hold-harmless provision) dropped between 30 and 40 percent. In other words numbers of children were increased but percentages of allocations has decreased.

NEWPORT SCHOOL DEPARTMENT
NEWPORT, RHODE ISLAND

Percentage of "A" and "B" contribution to actual cost of education per child by year.

LEA
Cost/Child

Fed Rate
for (a)'s

Fed Rate
for (b)'s

(a)'s
Percentage
Fed. Contribution

(b)'s Percentage Fed. Contribution

NEWPORT 'SCHOOL DEPARTMENT
NEWPORT, RHODE ISLAND

Comparison of Local, State, PL874 Share of Per Pupil Cost

1966-67 to

1976-77

School Year

66/67 67/68 68/69 69/70 70/71 71/72 72/73 73/74 74/75 75/76 76/77 (Est.)

(C)

LZA per

Year

NEVLORT, RHODE ISLAND
FEDERAL IMPACT AID TO NEWPORT CITY SCHOOLS, 1966-67 to 1976-77

Amt. Received
(B)

Should have in F.Y.(includes pupil cos
Fed ADA
Fed. ADA

Total District % of Dis- District Gross % of District received at adjustments for on Gross
for 3 (a)'s for 3(b)'s Proration Rate Receipts ADA trict ADA Budget Expense G.B. Expenses full funding prior year Budget
299
1815 3(a)'s @ 100% $410.69 $122,796.31 5089 41.54 $3,238,937.74 15.30

$510,483.00 $636.46
3(b)'s @ 50% 410.69 372,701.17

T 495,497.48

1966-67

NEWPORT SCHOOL DEPARTMENT
NEWPORT, RHODE ISLAND

Notes:

(A) In 1975-76 & 1976-77 LRH students were included in computations and monies

were received for them. Notice that the percentage paid on "b"'s dropped by almost half in 75-76 from what it had been the previous years and below half in 1976–77. What the feds gave us in one hand they took away with the other.

(B) These figures reflect monies received credited to the appropriate fiscal

year. Monies creditable to other fiscal years were received in later years as follows:

These monies are counted as having been received by feds in the Fiscal Year in which it is received. It does not help us for the year in which we expected to receive it.

(D) These monies reflect actual receipts to date starting with 1 July

1976 to present