Attachment A

North Dakota Data Sources for Equalization Tests

Data Source:

Computer tape North Dakota school district Master Financial tape 1974-75

Rhode Island

Basic Funding System

Rhode Island uses an open-ended basic school aid program

which provides for equalized State support of local current

operations expenditures. The State guarantees at least 30 percent support of local current operations expenditure by a local

district and there is no upper limit on the State share of

support for a district's expenditures. Additional basic aid is given for school district consolidation.

A11 40 school districts share in the basic school aid

program with 11 units receiving 30 percent support of their basic current operating expenditures. This State support ratio

ranges up to 73 percent for the district of Burrillville in

Northwestern Rhode Island.

In 1974 - 75, over 95% of all State

school aid was channeled through the basic school aid formula.

Outside of the basic school aid formula, the State has

three categorical aid programs for special education, vocational

education, and disadvantaged children.

All three categorical

aid programs are distributed without local matching requirements.

The State does not count P.L. 874 as a deduction against

basic school aid.

In 1974 - 75 about 22 districts received P.L. 874

funds with the bulk of such monies being concentrated in Middletown,

North Kingston, and Newport school districts.

Sources of Equalization

The structure of Rhode Island's school support is highly

equalizing. School districts face no expenditure limits yet they are entitled to a State basic school aid entitlement at whatever

Rhode Island - 2

expenditure they choose to make for their schools.

State

categorical programs also cover 100 percent of approved cost

and therefore, no unequalized local levies are required for

participation in these programs.

Sources of Disequalization

The only major source of fiscal disequalization in the

State's school support system arises from the minimum State aid

payments that are made to wealthier districts to insure them a

30 percent State support level for their current school operations.

Eleven districts received such aid in 1974-75; this support

amounted to $4.0 million dollars in State support by 1976-77.

There are no other unequalized funds in the State school

support system although four of the State's school districts are

so wealthy that they would not qualify for any State support

under the basic school aid formula.

Comparative Equalization Standards

Rhode Island would qualify as a State with an equalized

school finance system under the fiscal neutrality but not the

expenditure disparity standard.

Only about 2 percent of all State-local revenues for current operating purposes are unequalized. These unequalized funds are in the category of State save-harmless aid. If the

local current revenues from the four school districts that are

out of the State aid formula are added to these outlays, the

percentage of unequalized State-local revenues would only increase

to a level of 2.5 percent.

Rhode Island - 3

When expenditure disparities are measured, there is a 58.6 percent disparity between the 5th and 95th percentile

district.

This disparity is increased slightly when impact