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. All 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. |