Dear Superintendent Royal:
This morning (3-18-24) we confirmed RI Department of Education (RIDE) has processed a payment through the Automated Clearing House (ACH) Network to Pawtucket in the amount of $3,277,337. The description and agency notation on the statement denotes the $3.2M is a Housing Aid distribution. Please be advised the funds are not designated for the School Department’s Capital Reserve Fund but are payments to the City’s General Fund. In addition, the Housing Funds are a normal distribution, and the City Treasurer has already calculated its inclusion as part of our cash flow analysis. Therefore the $3.2M cannot be considered as a new or unexpected funding source and will not help with our current cash flow issues.
I understand that we will have a scheduled meeting with officials from RIDE this week. We look forward to the meeting for further clarity and resolving some of these issues.
Best regards,
Mark Stankiewicz
Finance Director
City of Pawtucket
In what appears to be a cash grab born of desperation, the City of Pawtucket has reallocated? Stolen? A $3.2 million dollar reimbursement from the Rhode Island Department of Education originally destined for the Pawtucket Schools Capital Reserve Fund.
It is the standard practice of cities & municipalities across Rhode Island to act as a destination for received State Funding/Reimbursements. Upon receipt, monies are transferred internally, via General Ledger Accounting.
Curiously, this amount roughly mirrors the “request” from the Grebien Administration last year, from the Pawtucket School Department funds, a request denied by the School Committee. (The subsequent acrimony, and outright denunciation by the City Council led to an attempt by Mayor Grebien to attempt a back door change in the City Charter creating an appointed School Committee)
The funds received are established by State Law through a “foundation program for school housing (school buildings) and intended to: (1) Guarantee adequate school housing for all public school children in the state; and (2) Prevent the cost of school housing from interfering with the effective operation of the schools. See R.I.G.L 16-7-35 to 16-7-47
Diversion of these funds may be illegal (Seeking Attorney Confirmation)
The Coalition is reaching out to the Grebien Administration, as well as the Rhode Island Department of Education.
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