The Westerly School Committee on June 18 approved a FY2026 operating budget that increases overall spending 1.74% from the district's adopted 2025 budget and approved multiple budget transfers to cover settlements, legal costs and transportation shortfalls.

The budget vote followed a presentation by finance staff member Cindy, who said revenue increases included $160,987 in Medicaid reimbursements and $144,349 in state grant dollars. Cindy also explained that categorical aid for multilingual learners has been folded into the operating budget under the updated formula.

The nut of the change, Cindy said, included staffing adjustments — adding an internship coordinator and an MLL (multilingual learner) after-school program, reducing one social-studies position through retirement, a 0.6 full-time-equivalent increase in math staffing and a reconfiguration of transportation and safety coordinator roles. The district also recorded a $161,567 electricity budget increase tied to prior-year solar accounting and energy catch-up.

In separate approved transfers, the committee moved funds to cover: $144,000 for special-education claims and settlements; an estimated $204,646 for legal costs; an increase in out-of-district special-education transportation of $56,631 and $92,192 to general transportation lines because of vacancies and service needs; and smaller transfers for CTE instructional materials and subscriptions. The committee approved the package by voice vote; the motion passed with members present voting aye and no opposition.

Committee members discussed the Parents as Teachers program, which shifted from a fully reimbursable grant model to a fee-for-service arrangement. Cindy reported that in fiscal year 2024 the district transferred $121,000 from the general operating fund to keep the program running and that, as of June 13, the program showed a $41,701 deficit. Medicaid reimbursements were reported to be about six weeks behind schedule. The Rhode Island Department of Health has agreed to pay a portion of coordinator salary and fringe from April through September and added some reimbursable outreach visits; the contract for that funding runs through Sept. 30, and staff said they expect to return to the committee in August with an updated report and next steps.

Committee members also approved routine consent items and a slate of smaller transfers that the finance presenter said were covered by underruns in CTE tuition lines.

The committee did not identify any additional budget actions at the meeting; officials said ongoing revenue timing (Medicaid reimbursements) and negotiations could affect final outturns later in the year.