Rhode Island’s reliance on local property taxes to pay for schools continues to grow, with the state ranking second nationally in 2007, moving up a spot from the previous year. Only Illinois depends more on property tax to finance education, according to an analysis released today by the Rhode Island Public Expenditure Council, a business-backed policy organization.

A decade ago, just over 54 percent of Rhode Island’s school costs were covered by local property taxes, and the state ranked 12th in the nation. By 2007, that share had swelled to more than 60 percent. The rest of school costs are covered by state — about $672 million this year — and federal money.

“The report illustrates the high level of the state’s commitment to fund public education while increasing the trend of municipalities’ taking a larger share of local public education,” said John C. Simmons, RIPEC’s executive director.

Other states rely more on state money to help finance schools. But Rhode Island, along with Pennsylvania, lacks a predictable school-financing formula. Lawmakers, educators and watch-dog groups including RIPEC have been working together to hammer out a formula they say would shift more of the burden of paying for schools to the state. Simmons said the ad hoc group plans to submit legislation on a financing formula next month.

A General Assembly subcommittee last year failed to pass a financing formula it had been working on, and it is doubtful that the state could finance one in the coming budget year, because of its fiscal crisis. Lawmakers have to bridge a $151-million deficit for the current fiscal year and an estimated $410-million deficit in the year that starts July 1.

The 2008 edition of the RIPEC report, “How Rhode Island School Finances Compare,” also found that while Rhode Island continues to rank among the top spending states in per-pupil expenses and teacher salaries, Ocean State residents are less able to afford the investment, when compared with their wealthier neighbors.

Rhode Island ranked ninth in per-pupil expenditures in 2007, a drop from seventh a decade ago. In 2006-07, Rhode Island spent $11,503 per student, or 20 percent more than the national average, $9,557.

Massachusetts and Connecticut both spent more per pupil than Rhode Island — $13,294 and $13,005 respectively. Both states also spent more than Rhode Island on average teacher salaries. Connecticut ranked second-highest nationally, with an average of $60,822 a year, and Massachusetts ranked fourth, at $58,624. Rhode Island’s average teacher salary ranked eighth, at $55,956.

But average per capita personal income is significantly lower in Rhode Island, meaning the state’s population is spending a larger chunk of income on schools.

Connecticut led the nation in personal income wealth, averaging $50,787 per capita, and Massachusetts ranked third, at $46,255. Rhode Island ranked 17th, at $37,261.

“While Rhode Island spends less than both Connecticut and Massachusetts on a per-pupil basis,” the report stated, “the state outspends both its neighbors when education expenditures are examined as a percentage of personal income.”

Rhode Islanders spent $46.92 per $1,000 of personal income on education, which is 10 percent higher than the national average of $42.61. Connecticut spent 1.6 percent less than the national average and Massachusetts spent just 1.4 percent more than the national average.

RIPEC used information provided by the National Education Association, U.S. Census Bureau and the Bureau of Economic Analysis, according to RIPEC analyst Susanne Greschner.

To see a copy of the report, visit: www.ripec.com

jjordan@projo.com