CPS Mayoral Academy Fiscal Impact Rebuttal
Comprehensive Fiscal Impact Analysis
Fiscal impact statement as prepared by the Mayor is seriously misleading,utilizing a flawed budgeting methodology.
The Mayor has presented a distorted view of the District’s finances, only looking at theadditional revenue that is to be received under the RI Education fair funding formulato make his case that the Mayoral Academy will not have a fiscal impact on the SchoolDistrict.
What matters is not how much additional money the School District will be receivingfrom the State (an uncertain proposition, since the state could change its mind insubsequent years), but how does the receipt of that additional money affect theoverall finances of the School District.
By analogy, take a Rhode Island family with both husband and wife working,who are considering the affordability of purchasing a new car. While makingthe showroom rounds, the husband is laid off and the wife receives a raise.How would you make the decision? Would you make it solely based upon thewife’s raise, or would you take a look at the big picture? More importantly,does the wife’s raise exceed the loss in income from the husband’s layoff?