Rhode Island family struggles with budget despite $120K income and high expenses

The Chariho School Committee convened on February 11, 2025, to discuss various financial implications affecting local families and the school district's budget. A significant portion of the meeting focused on the economic challenges faced by families in the region, particularly those with an annual income of $120,000.

One committee member highlighted a report from Visual Capitalist, which indicated that the livable income for a family of four in Rhode Island is approximately $123,000. This prompted a deeper examination of the financial burdens on such families, especially in relation to property taxes and overall living expenses.

The discussion included a breakdown of monthly expenses for a typical family earning $120,000. The member detailed that after taxes, the family's take-home pay is about $9,200 per month. However, when accounting for housing costs, property taxes, insurance, food, childcare, transportation, healthcare, and other expenses, the total monthly outlay reaches nearly $10,000. This results in a monthly deficit of approximately $800, leading to increased reliance on credit cards as families struggle to make ends meet.

The committee acknowledged the painful impact of budget adjustments on both families and school programs. The discussions underscored the need for careful consideration of financial policies that affect the community, as any changes could have significant repercussions for local educational initiatives.

As the meeting concluded, the committee emphasized the importance of understanding these economic realities while planning for the future, ensuring that the needs of families and the sustainability of school programs remain a priority.