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Spending case goes to court

01:00 AM EST on Thursday, November 9, 2006

By Mark Reynolds

Journal Staff Writer

JOHNSTON — The Rhode Island Supreme Court waded into Johnston’s school-budget dispute yesterday.

Municipal lawyers are appealing a 2005 Superior Court ruling that forced the town to pay for an additional $2.3 million in unbudgeted school spending.

The School Department’s lawyers argue that the matter is not worthy of the Supreme Court’s attention because municipal officials have already paid the bills.

“We believe the case has been voluntarily resolved,” said the schools’ lawyer, Stephen M. Robinson.

However, Johnston’s municipal solicitor, John M. Verdecchia, argued that the Supreme Court needed to address the Superior Court’s flawed judgment in the case. Otherwise, Johnston, as well as other municipalities, will continue to be frustrated by school officials “who are free to spend as much as they want, with no accountability, no taxing authority…,” Verdecchia said.

Even though municipal officials contested the schools budget, they could not hold off on paying for the schools’ unbudgeted expenses in the fiscal year that ended June 30, 2005, according to Verdecchia.

Mayor William R. Macera had two choices, Verdecchia said. He could pay the bills as they came in. Or he could “go to the hardware store, buy padlocks and then lock the schools.”

“Not much of a choice,” said Verdecchia, who was accompanied by Macera.

For the most part, the five-justice panel yesterday focused on the School Department’s request for an early dismissal of the town’s appeal, gathering information on that motion but stopping short of any decision.

The justicess peppered the lawyers with questions.

Justice Maureen McKenna Goldberg asked Robinson whether the school officials would insist on a transfer of money to their accounts if the high court should review the case and rule in their favor. Robinson said that no such transfer would be necessary because the bills had already been paid.

For the moment, the schools’ preliminary dismissal motion has headed off a full-blown hearing on the appeal, which challenges the Superior Court’s enforcement of a law that lets local School Committees sue for larger budget allotments.

The potential for litigation based on the Caruolo Act – enacted 10 years ago – is often a factor in school budgeting decisions, not only in Johnston but throughout the state.

Supporters say the Caruolo Act serves as a much-needed mechanism for resolving budget disputes and ensuring that school districts receive sufficient financing. Some critics say the law gives school committees too much power.

Chief Justice Frank J. Williams wanted to know what Verdecchia and municipal officials want the court to do.

Verdecchia told him that the high court needed to address how the Superior Court handled the case.

The process put the burden of proof on municipal officials, forcing them to demonstrate that the money provided to the schools was sufficient, instead of the other way around, according to Verdecchia.

Williams ended the morning discussion by wishing the lawyers luck.

“We’ll let you know,” he said.