Caruolo Law: Clarifying What it Does and Does Not

Rhode Island General Law Title 16, Chapter 16-2, Section 16-2-21.4

Does

> Permits school committees to sue their city/town for failing to fully fund their budget.

the school committee shall have the right to seek additional appropriations by bringing an action in the superior court

> Requires a financial and performance audit in the event the school committee brings a suit in Superior Court.

Upon the bringing of an action in the superior court by the school committee to increase appropriations, the chief executive officer of the municipality, or in the case of a regional school district the chief elected officials from each of the member municipalities, shall cause to have a financial and performance audit in compliance with the generally acceptable governmental auditing standards of the school department

Does Not

> Caruolo does not allow a school committee to sue their city/town for failing to fund an overspent budget. In fact, two other chapters of R.I. Law Title 16 specifically state that a school committee shall not overspend its budget.

16-2-9(25)(d) The school committee of each school district shall be responsible for maintaining a school budget which does not result in a debt.

16-9-1 ... provided, however, that school expenditures, encumbrances, and accruals shall not, in any fiscal year, exceed the total revenue appropriated for public schools in the town.

> Caruolo does not oblige a school committee bring a lawsuit.

the school committee shall have the right to seek additional appropriations by bringing an action in the superior court

So. How compliant is your school committee with the Caruolo law and the balance of Title 16? Are they compliant even as they file a lawsuit under Caruolo?