PROVIDENCE, R.I. (WPRI) — Providence will pay $15 million as a result of a settlement reached between the city and the R.I. Department of Education over increased school funding this week. The settlement was signed Friday morning, just days after a judge announced both parties reached an agreement. The resolution followed a lengthy and tense court battle and days of closed-door negotiations. The two sides had been at odds over how much Providence should increase education funding to comply with the terms of the Crowley Act, the law that governs school districts under state takeover. Providence schools have been under state control since 2019. According to the agreement, the city owes the Providence Public School District $4 million for fiscal year 2024 and $11 million for fiscal year 2025. The $4 million payment has to be made within five days the agreement was fully executed, per the terms of the agreement. R.I. Education Commissioner Angélica Infante-Green said in a statement she was pleased the city was taking steps to "fund the schools in accordance with their legal obligation." "We are all committed to building a world-class school system that meets the needs and priorities of Providence students, families, and educators, and the city’s commitment to provide additional municipal funding will help ensure PPSD stays the course,” Infante-Green said. Estimates of how much more city taxpayers may need to spend on the schools had been in the range of $11 million to $55 million. During an appearance on WPRI 12's Newsmakers, Mayor Brett Smiley said he was satisfied both sides could come to a compromise. "This was a bruising process and a bruising negotiation," Smiley said. "But we now have certainty and most importantly the students, the families, the teachers of Providence can know that all of the cuts that were threatened aren't going to take place." The mayor said there will not be a mid-year tax increase, but he said next year's budget will require a tax increase that exceeds the 4% tax levy, which requires approval from the R.I. General Assembly. "We are going to have a series of cost-cutting measures that will go through the rest of this fiscal year in order to pay this $15 million," the mayor said. "And we're going to make it work, but it will be a sacrifice." Smiley said the city will apply unused energy credits and federal COVID-19 dollars to help with the $15 million shortfall, but there was still $2 million in cuts the city would have to make. The mayor said the city will still pause discretionary spending and keep a hiring freeze in place for the rest of the year, equating to about 100 positions. "It will slow down service response times on a variety of topics." Smiley said. "That will mean that the other employees in City Hall are going to have to work a little bit harder because they're not going to have a full complement of staff." He said while there will be smaller program cuts, grants to youth supporting agencies, like libraries, social service partners, and recreation programs, were safe. Smiley also said the police and fire academies planned next year would take place according to schedule. The agreement also requires that school funding would be increased in the city's annual budget. This year, the schools received $135.5 million from the city, a $5.5 million bump and the largest increase to the school system in 17 years, according to Smiley. The mayor said in 2026, Providence will earmark $147 million for schools, an $11.5 million increase. The schools would get $147 million in 2027, plus the percentage required by the Crowley Act, should the district still remain under state control. Earlier this year, the state takeover was extended for up to another three years. The mayor said last week he'd like to the city to regain control as soon as soon as possible. Smiley said he was happy the city, education department and school district could move forward. "We can now have a chance to reset the relationship with the school department and get back to focusing on how to improve outcomes for all of out students before we get to cuts and taxes," he said. Alexandra Leslie ([email protected]) is a Target 12 investigative reporter covering Providence and more for 12 News. Connect with her on Twitter and on Facebook. Ted Nesi and Tim White contributed to this report. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Daily Roundup SIGN UP NOW