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Cicilline seeks to block Carcieri's use of stimulus money

9:35 AM Fri, Mar 13, 2009 |
News staff    Email

By Steve Peoples and Cynthia Needham
Journal State House Bureau

PROVIDENCE, RI -- Mayor David N. Cicilline has asked the federal government to block what he considers Governor Carcieri's plans to shift millions of federal stimulus dollars away from local education to help close state budget deficits.

The governor released a state budget proposal this week that gives local communities far less new funding than they could have received under the $787-billion package approved by Congress last month.

"Unfortunately, I fear the potential transformative impact of [the federal stimulus] is undermined by the spending proposals in the budget recently submitted by Rhode Island Governor Donald Carcieri," Cicilline wrote to U.S. Secretary of Education Arne Duncan in a March 11 letter. "Rather than seizing an opportunity for strategic, increased funding, his budget substitutes [federal stimulus] funds to restore reductions in state aid to schools. Increased investment intended to move us forward, is instead only maintaining the status quo."

Carcieri's $7.6 billion budget would send tens of millions of stimulus-related dollars to local schools. But in some cases, his spending plan simply cuts funding the state would have given school districts and replaces the cut with stimulus funds.

The practice, known as supplanting, has been questioned by House Finance Committee chairman Steven Costantino, the General Assembly's top budget official. The governor's budget officer, Rosemary Booth Gallogly, said this week she wasn't sure if the practice is allowed under rules being developed by the federal government.

Cicilline argues to Secretary Duncan that the practice denies new funding to local education, which violates the intent of the stimulus package.

Extra: Read Read Mayor Cicilline's letter to Governor Carcieri
http://www.projo.com/news/2009/pdf/cicilline_carcieri_stimulus.pdf

"I write to you today, to bring this matter to your attention and to urge you to use the authority of your office to prohibit this proposal by denying any waiver request to authorize this action," Cicilline wrote. "By doing so, you can ensure the funds committed to education in [the stimulus package] are instead expended consistent with the goals set forth by you and the President."

Supplanting is demonstrated in Article 3 of Carcieri's budget for the coming fiscal year: "This section further reduces school districts' FY 2010 aid by $35,059,374. However, this decrease is offset by a distribution of the same amount in stabilization funds per the [stimulus package]," reads the explanation from Carolyn Dias, the Rhode Island Department of Education director of finance and administration.

The Carcieri administration acknowledges there isn't specific federal guidance on the use of all stimulus funds, which are divided into multiple categories, each with different rules, some of which haven't yet been written. The governor sent members of his staff to Washington this week for further clarification.

Peter N. McWalters, state commissioner of elementary and secondary education, was among various state leaders from around the country who attended a lively meeting on the subject in Washington on Tuesday.

"We had people sitting at the table saying, 'I'm on my BlackBerry with the budget office [in my state] trying to figure what they can use the money for,'" he said. "Every state is being forced to make some assumptions and begin to budget it."

The governor's spokeswoman, Amy Kempe, said Wednesday that the administration received verbal approval from the president's Office of Management and Budget that "we are following the law as it was intended."

"Recognizing that the Department of Education has not written the rules and regulations, based on the opinion of the OMB, the state is following the intent of the law as it has written today," Kempe said. "Now if something changes in the rules and regs, we will of course address those. But as it stands, we have received verbal communication from the OMB that we are using the funds as allowed under the act."

Rhode Island is expected to receive approximately $1.1 billion in federal stimulus dollars over a period of slightly more than two years, but state leaders have flexibility in using only a relatively small portion as they wish. Approximately $93 million is designated for special education and "Title 1," the federal aid for impoverished schools, for example.

Cicilline accuses Carcieri of misusing a specific pool of money dubbed the "state fiscal stabilization fund," which totals around $167 million for Rhode Island.

"The majority of the stabilization fund must be used for education," reads a PowerPoint demonstration provided by the governor's budget office this week. More specifically, 81.8 percent of the fund, or approximately $130 million, "must be spent on education," according to a statement issued last month by U.S. Sen. Jack Reed's office.

Cicilline appealed to the governor to reconsider his use of stimulus funds in his budget -- which sought to close state budget deficits exceeding $860 million over two years -- in a March 11 letter, the same day the mayor wrote to the U.S. Secretary of Education.

"This proposal represents a tragic, lost opportunity to realize meaningful reform and improvement in the Providence schools," Cicilline wrote the governor. "While I understand the unique budget demands currently faced by the state, I hope you will agree with me that we must make decisions that will have an enduring positive impact. Today's crisis must not prevent from investing in tomorrow."

Warwick Mayor Scott Avedisian was also disappointed by Carcieri's use of the stimulus funds.

"We were led to believe for a long time that the money was going to flow down from on high through the stimulus money through the state to us," Avedisian said.

But the Carcieri administration has instead decided how to distribute the money on its own.

Rhode Island's congressional delegation has been hesitant to answer specific questions on the dispute, but issued a general statement Thursday night:

"We believe preserving jobs and modernizing our schools for the 21st Century are critically important to the recovery of our state's economy, and we worked hard to ensure that Rhode Island can receive this $167 million in federal funding for that purpose," reads the statement released jointly by Rhode Island's four members of Congress. "This federal aid offers a unique opportunity to improve Rhode Island's public schools. In order for the state to receive this aid it must meet federal guidelines that will be issued by the Secretary of Education, and we will closely monitor this process."

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Comments

dennis said:

Politicians fighting over how to spend taxpayers money - funny really.

Has everyone forgotten that RI spending per student is in the top 10% and our results are in the bottom 10%?

By all means, give the educator more money for their pensions out of the stimulus package.

until the school systems reform themselves, cut back on spending and show some results they should have to tighten their belts just like the rest of us.



Noxidereus said:

I support what Cicilline is doing. I am very disappointed in Carcieri, as am I with the entire Republican party for playing politics rather than being part of the solution.



Dave said:

Cicilline is on the right track, in my opinion. The state budget needs to be brought under control NOW, without using stimulus money. Carcieri wants a 10% increase next year, which is completely reckless and uncalled for. Expenses need to be cut NOW. Payrolls need to be cut NOW. Staffing levels need to be cut NOW.



JackMcC said:

Cicilline got it right -- way to go !!! We can not let this Governor blow another opporuntity to plan for our future - just like he blew the tobacco money pluging a budget hole in the past. Federal recovery money was meant to IMPROVE and ADVANCE public education, not fill a Carcieri budget hole.



RT said:

In our lifetime, to devote all we can to improve education should be our goal. What could be more important than spending money in education?



E said:

This is exactly the problem with RI and why I moved out of RI. These funds are supposed to be used to give extra money to the schools on top of state aid, not replace it. I can tell you that, as a former RI educator myself, the RI school system has been suffering for years with budget cuts (ever since I can remember). It's not the teachers.....I haven't seen any administrators giving up anything with their health copay or salary while teachers are being laid off to reduce the costs of the health and salary step increases of current teachers. Also, how is it that administrators keep getting hired in place of cutting teachers in the classroom? It seems like if RI is going to cut on education, it's true that all districts have to institute a 20% maximum copay on health and not make maximum pay $68,000 in any district for 10th step teachers all around the state (a fair but rewarding salary). Also, regionalization of the schools rather than individual towns and cities would be better. Where I work now, I have to pay 50% copay for health and get paid about $6000 less but at least I can say it's a little better job security here seeing that I was laid off twice in RI and there are no jobs for me there. The problem is not the current teachers, it's about the state stretching their muscles before they even try to work with teachers and denying the towns and cities the money needed to keep the educational system high. Bottom line, towns and cities need to be held to the same standards for pay and copay on health which is the two main things a teacher looks for when staying in a district and once that is done, there can be no more cutting. It's out of control only because the towns and cities offered teachers good pay and benefits and now it is time to reconcile and still make teachers receive fair benefits and pay for what we do. You can't just do this in one year, you have to phase it in like when they cut retirement benefits from 80% to 65% for teachers in the 2005-2006 school year who worked less than 10 years (again.....teachers taking another cut). I don't think most of the public knows that teachers (newer ones especially) have taken cuts in benefits and also the number of jobs that are available to apply for in the recent past. This reason forced me out of RI as an educator.



TomBadger said:

do not give the Prov. Mayor a dime....he has ruined our schools in Providence by allowing illegal aliens to invade our once lovely city...which is not the pits....I agree with the Governor.....do not pour gasoline on a raging fire.....



John said:

The republicans voted against the stimulus package and some republican governors are refusing to accept the money even though their states are in dire need of it, Mark Sanford being one such governor. Now it will be the republicans who abuse it. Carcieri is another republican who just doesn't get it. He's on his way out so why should he care.



1Sunbum said:

Man, this state van't get anything done... Rhode Island, where it's forever 1910....



zman07 said:

With stimulus money plans such as a polar bear exhibit and rail trolleys, Cicilline has never been on the right track. He changes with the wind. Just more grandstanding for the voters.



dr.rick said:

The bundle of stimulus money coming into RI is like putting a huge mound of cocaine on a table surrounded by cokeheads.

Headbutting each other out of the way to bury their noses in it.

It is pathetic to watch.



sue said:

Hasn't anyone been in a Prov.school lately ? They are populated by non-English speaking students needing ESL and IEPs .Does anyone not know the cost of these requirements ? Mayor Cicilline needs to go to Court and get limitations on the mandates that are in place .I don't mind paying for a legal immigrant's education,but we Prov.residents are paying for others who should not be allowed to misuse our generosity any longer.Unfortunately,that becomes the reality of the situation when funds are taken away from the elderly,the poor,our roads,and public services and directed to a population which is essentially stealing from us.



JD said:

Gov Carcieri did not have tovbacco settlement money in his budget. That was put in by Constantino and friends. If the Gov tries to cut the budget the way it needs to be cut then people complain he is screwing everyone over. If he cuts it and makes it easier to swallow by using stimulus money to replace some of the cuts then people cmplein he is mis-using the stimulus money. What is he supposed to do. Should he just submit a budget that has full funding for all plus all of the stimulus money and a tax increase of 50% for everyone?



Conservative Voice said:

This stimulus money if it goes to the towns would only go to the salaries of teachers who have not produced the results expected for their salary levels. It will not go to the students to give them the tools needed to foster hands on learning. Most schools are 98% fixed costs on salaries, benefits, utilities, and debt service. The remaining scraps are for tools. In seven years my child has come home with only 1 new text and because the teacher was not trained or give the book in advance has rarely used it. This whole system is a disgrace. I don't buy anything Mayor Cheat throughs out as reteric for re-election.



bill said:

Carceri didnt want to use the stimulus to shore up the budget and everyone complained. Now he is using it and everyone is complaining. Cicille is an oportunistic whiny little man that just wants the spotlight for political gain. he need to crawl back under the rock he came from.



Steve W said:

The only reason Cicillini is not a happy mayor today is because he thinks it's his money to squander on the teachers union in Providence...... Madoff's got nothing on Cicilini with his ponzi scam..... The phraze use to be tax and spend but now with the Democrats in control they have convieniently turned that around to "Spend and Tax"..... And if Cicilini didn't cater to the illegal population and unlawfully harbor and abeit them all to his fair city for free education, free medical, free public assistance then maybe he and his fair city wouldn't be in the situation they're in right now..... And by the way if he didn't know it none of the above mentioned free-bees are free...... He's got his own little "Robin Hood" shake down scam going on with his hand in the Rhode Island Taxpayer's pocket.....



Doug said:

IT,S TIME FOR TEACHERS AND STATE, MUNICIPAL EMPLOYEES TO WAKE FROM THEIR DEEP SLEEP AND SEE THE REAL WORLD. I WORK FOR $420 PER WEEK GROSS PAY. AND OUT OF THAT I COPAY $125 WEEKLY FOR BLUE CROSS.NOT MUCH LEFT AFTER TAXES. I HAVENT HAD A PAY RAISE IN 5 YRS.BUT MY LOCAL TAXES KEEP GOING UP . WELCOME TO REALITY.




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