EAST GREENWICH, R.I. -- East Greenwich is a community known for its great schools, but it's a school system funded almost entirely by local property taxes.

Less than 3 percent of its budget comes from the state in the form of local aid.

"Even though $1.8 million out of a $30 million budget doesn't sound like a whole lot of money, believe me, it is," superintendent Charles Meyers said.

But that $1.8 million could be going away.

Two bills sitting in committee at the State House aim to re-allocate the way school aid is distributed.

Meyers said it doesn't look good for East Greenwich.

"I've seen the spreadsheet on what that would mean for individual districts, and that would result in East Greenwich not receiving any state aid at all," Meyers said.

Meyers said the district has six high-performing schools and that it works hard to maintain them.

"In doing so, it seems that our reward is that we get no state aid," Meyers said.

If a community were to lose its state aid, would it still be required to follow state education mandates?

"It wouldn't relieve them of any of the obligations," state Education Commissioner Peter McWalters said. "In state law, you have to have four years of (physical education). So, whether you thought you were independent or not, you'd have to do that. You'd have to transport kids."

So, even if the money goes, the state and federal mandates stay.

McWalters said a community without local aid could consider recreating itself as a charter district, operating in a manner similar to charter schools. But it has never been done in Rhode Island.

As for the bills, they are sitting in committee and no action has been taken. But it's a situation East Greenwich and several other communities are watching closely.