East Greenwich officials warn $842,000 cut in proposed state aid will force budget trade-offs

East Greenwich school and town officials told a joint pre‑budget meeting that a proposed reduction in state education aid of more than $842,000 in the governor’s fiscal‑year 2026 proposal would require significant trade‑offs to avoid staff layoffs and service reductions.

"The proposed budget calls for a reduction of more than $842,000 in state aid for East Greenwich," said Dr. Brian Ricca, superintendent of schools, during the presentation. He said the reduction is partly a result of East Greenwich’s relatively high median income under the state funding formula and that the town is being propped up this year by a one‑time poverty stabilization fund that would offset part of the loss.

The meeting, required by Rhode Island General Laws 16‑2‑21 to be a pre‑budget session between the town council and the school committee, was billed as an opportunity to review revenue estimates and projected expenditures for fiscal 2026. The school presentation, led by Ricca with finance director Maggie Baker, laid out current projections and identified salary and benefits as the largest expenditure category.

Why it matters

Town and school officials said the size of the state aid reduction — combined with the scheduled end of one‑time federal ESSER education grants and ongoing inflationary pressures — leaves limited options. Andy Nada, the town manager, told the meeting that even if the town votes to grant schools the statutory 4 percent transfer, that amount ‘‘is not going to be enough’’ to fully offset the cut.

What officials said and recommended

Dr. Ricca highlighted several items that will shape the FY26 budget, including enrollment trends, special education costs and negotiated contracts with teachers. He noted that "through all three rounds of ESSER, East Greenwich only received $846,705," a figure he contrasted with the $842,000 proposed state aid loss.

Maggie Baker, East Greenwich school finance director, explained projections for FY25 and addressed a typo that had appeared on the salary line of a slide (the salary line should read 27,771,734 rather than the 27,771,934 that appeared on one slide). Baker also said that positions left unfilled this year had reduced salary and benefit costs and that some expenses (for building maintenance and out‑of‑district tuition) are encumbered and therefore largely known.

Town manager Andy Nada and council members repeatedly urged collaboration while flagging limits on the town’s capacity. Nada summarized the fiscal reality in blunt terms: "No one is out there to help us," and noted the town must balance competing pressures including contracts and an upcoming school construction debt schedule.

Revenue and fund balance details

Officials said the district has used fund balance previously to smooth year‑to‑year revenue shortfalls. The school’s fund balance stood at roughly $1.4 million in the most recent audited year, officials said; if the proposed state aid cut holds, use of the fund balance is expected to decline that cushion.

Baker said Medicaid reimbursement is a volatile revenue source used in the budget, and the presentation carried a projected Medicaid reimbursement line of $385,000. Town council members pressed staff on the basis for that number, noting actual receipts have varied year to year and asking staff to consider more conservative revenue assumptions when they produce next year’s budget.

Program and cost drivers discussed

- Out‑of‑district placements: Dr. Ricca and high school principal Pat Page explained that the district pays full tuition for students placed in private special‑education or CTE programs and that transportation tied to those placements can be a significant additional cost. - Career and technical education (CTE): Pat Page said East Greenwich currently enrolls 13 out‑of‑district students in its CTE programs and that tuition rates for some programs can be high over a student’s full four‑year high school career. - Transportation: Officials noted a statewide commission is studying transportation costs; several speakers urged advocacy at the State House because transportation and charter/ private school busing can shift large costs to sending districts.

Budget process and priorities

Ricca said he will not entertain layoffs at this time and that the district’s priority is to "ensure that all the humans that are doing the work are able to do the work next year." Councilors emphasized the town’s parallel pressures: multiple municipal labor contracts are also due, the town faces its own inflationary and capital obligations, and a major school construction project will increase projected debt service in 2027–2028.

Votes at a glance

- Consent calendar (includes minutes, a reappointment to planning, an equipment bid of $65,300, appointment of a school committee representative to the school construction committee, and recommended tax abatements totaling $23,449): passed 4–0 by the town council. - Appointment of Kevin Simon to the Housing Authority (five‑year term): passed 4–0 by the town council. - Appointment of Lara Salamano to Quonset Development Corporation board (three‑year term): passed 4–0 by the town council.

Outlook and next steps

Officials said the next steps will include continued joint work between the school and town finance staff, more detailed budget drafts for FY26, and advocacy at the state level to limit or reverse reductions in state aid. Both sides said they will continue to exchange data and follow up on specific revenue lines (Medicaid reimbursements, rental income and encumbrances for out‑of‑district tuition and transportation) as the budget is finalized.

"We are all just as committed," Andy Nada said, adding that town staff and school staff are already collaborating on questions and that "we're going to work collaboratively" on the coming budget process.

Ending

The joint session closed after public comment from a local teacher urging sustained investment in classrooms; the council recessed and moved other town business later in the evening.