Tiverton officials approve OPEB withdrawal and hear FY25 spending and FY26 budget update

The Tiverton School Committee voted unanimously April 8 to approve a request to withdraw up to $153,041 from the district's Other Post-Employment Benefits (OPEB) investment account to help cover the FY25 deficit.

Daniel Andrade, the district's Director of Technology who presented the request, said the OPEB account (established in 2016) has not previously been tapped; as of March 31, 2025, the account balance was $637,008.92. Andrade told the committee district policy and the account rules allow withdrawals for the last two fiscal years' eligible expenses and that the requested amount is a "not to exceed" figure; actual withdrawal would occur after end-of-year final figures are clearer.

The committee followed with a broader financial update: Andrade reported FY25 year-to-date spending of $25.3 million through March (about 69% of projected budget) and identified several over-budget pressure points, including unemployment expense, certified substitutes (driven by multiple maternity leaves), and special-education personal care attendants and nursing invoices that arrived with a lag. The district's projection showed a shortfall in the range of about 2 to 2.3 percent of the budget, with staff still analyzing remaining line items.

The committee also received a FY26 budget update. The proposed budget total remained at $35,500,000 as previously presented; staff said the number assumes a 4 percent increase in town funding and that several line items are still pending (for example, property and liability insurance). Administrators noted savings from personnel adjustments (including a net reduction of 20.5 FTEs earlier in the process) and adjustments in transportation assumptions, but warned the bottom line could change as the town finalizes its allocation.

Committee members asked clarifying questions: one member asked whether OPEB covers retiree premiums until age 65 and whether there is a significant outstanding OPEB liability; staff replied that the trust covers retiree health insurance until age 65 and that the district does not have a significant additional liability beyond the current balance. Members also asked about operating freezes and whether necessary spending (special-education services, overtime for custodians and Unified Basketball TAs) continued; staff said mandated and necessary spending continued while discretionary spending was limited.

The committee approved the OPEB withdrawal motion by unanimous voice vote. The budget and spending updates were received for planning ahead of presentation to the town budget committee on April 14.