Table RI-3

Fiscal Neutrality Analysis for Rhode Island State-Local Revenues

*State Minimum aid as of 1976-77.
**Current Operating Revenues for 4 Districts that are completely out of

formula minus P.L. 874 funds and State aid.

Source:

See Attachment A; also correspondence from Cynthia Ward,

Coordinator of Research and Evaluation, Rhode Island
Department of Education.

Attachment A

1974-75 Rhode Island Data Sources
for Comparative Equalization Standards

Data Source:

1974-1975 · Statistical Tables State of Rhode Island Department of Education

Virginia

Basic Funding Program

Virginia uses a basic foundation aid program for

disbursement of the bulk of its state school support.

It also

relies on several other categorical aid programs for support

of specific local current operating expenditures. Major categorical programs occur in the areas of special education, vocational education, and transportation. Smaller aid programs support gifted and talented programs, superintendents salaries, and

expenditures in districts which have above average spending

levels.

A small amount of "save - harmless" monies are also

appropriated in the states basic aid program.

Local school districts are required to raise local revenues in support of the foundation program, set at $687 per pupil in 1974-75. Local districts also may raise additional unequalized

local revenues above foundation program levels for regular

day school programs.

They also may raise additional monies

for local support of particular categorical programs.

The state received $41.9 million in P.L. 874 funds in 1974-75. The state does not count impact aid as part of its basic aid

formula.

Sources of Equalization
There are three types of equalizing school funds in Virginia.

The first is that part of the state's basic aid program which

supports local current expenditures in local school districts

that cannot raise $687 per pupil from local resources.

The

second type of equalizing fund is the local revenue that is applied to the foundation program in the aforementioned districts. Finally, Virginia-2

most state categorical aid programs pay all or a high uniform share of selected program costs. These categorical aids, then,

are classified as equalized in character.

Sources of Disequalization

There are also three types of disequalizing funds in the

state's school support system.

The first is "save - harmless" aid

which amounted to $13.9 million budgeted for 1974-75.* This aid is provided so that no district will receive less basic aid than

it did in the 1971-72 school year.

The second type of disequalizing

state aid occurs in the inventive payment program which simply pays

districts that spend above state average expenditure levels five percent of such excess expenditures. This aid amounted to $6.0 million in 1974-75. The final type of disequalizing monies occurs at the local level. This money is raised locally for support of

regular day programs above the $687 foundation level and for local

enrichment of special categorical programs.

These minies were

approximately $330 million in 1974 - 75.

Comparative Equalization Standards

Virginia does not qualify as an equalizing school support state under either the fiscal disparity or the fiscal neutrality

standard.

Expenditure disparities between the 5th and 95th

percentile districts were 67.3 percent in 1974 - 75.

However,

these disparities were increased with the addition of P.L. 874

funds to 74.4 percent.

This reflects the fact that P.L. 874

funds in Virginia flow to relatively high spending districts.

On the fiscal neutrality standard, it appears that about

$332 million is raised in unequalized funds at the state and local

*$9.6 million was eventually appropriated for this purpose in 1974 - 75.