Middletown school leaders and town officials warn of tighter 2025–26 budget after state aid drop

Middletown school and town officials told the joint pre‑budget consultation Monday that the district faces a “lean year” for fiscal 2025–26 after the governor’s proposed budget revised down local school aid and federal pandemic grants wind down.

At a meeting required by Rhode Island General Law 16‑2‑21, Town Finance Director Mark (Patrick) and School Finance Director Patrick (surname not specified in transcript) presented revenue estimates that incorporated the governor’s recommended state budget and showed the school department projecting a $556,000 reduction in state education aid compared with the adopted 2024–25 budget. Finance staff said the falloff is driven largely by lower enrollment and the state’s share ratio in the education funding formula; RIDE (the Rhode Island Department of Education) continues to revise aid figures.

The revenue presentation listed a municipal estimated general fund of $88,364,614, down $519,000 (0.58%) from the current year. Town officials said municipal tax revenues are projected to increase overall by about $1.9 million (3.3%) because of growth in the tax base, but school revenues specifically are expected to decrease by roughly $5.3 million in the town summary (details in the revenue manual). The school department noted a projected $150,000 drop in federal grants as ESSER funds sunset, a $76,000 reduction in enterprise funds tied to cell‑tower negotiations related to the new middle‑high school, and decreases in some restricted state categorical funds.

Superintendent Billy Niemeyer told the council and school committee the district would need to balance student success with likely fewer resources next year and asked the town for a 4% increase in municipal support to maintain services. Niemeyer said his team is prioritizing requests and looking for efficiencies—shared business‑office services with the town, a shared facilities director, program changes to attract students (including expanded CTE offerings) and redefined or repurposed positions—but cautioned that several large variables remain, including three collective‑bargaining contracts (teachers, teacher assistants and custodial staff), unpredictable special‑education placements and rising transportation costs.

Niemeyer said special‑education out‑of‑district placements and transportation have increased sharply: out‑of‑district tuition was budgeted at about $2.7 million and has already risen; special‑education transportation rose about 61% and homeless transportation rose about 74% this year. He called special education a “wild card” that is difficult to budget for because a single new placement can substantially affect costs.

Committee members and councilors pressed staff on enrollment, which the school projected to decline by about 98 students year‑to‑year. School officials said arrival of additional ships and military families (NOAA and Coast Guard) may boost enrollment over the next two years but could not be counted yet. The superintendent said federal impact aid tied to military enrollment will be submitted imminently and could affect revenues. Councilors also asked about multilingual‑learner (MLL) students; Niemeyer said the district has pursued staff endorsements and coaching to expand ELD capacity and expects to have roughly 50% of teachers with MLL endorsements by the end of the school year.

Town and school finance staff noted some one‑time revenue and expense shifts: use of ARPA funds for prior deficit reduction was ending (the current year was the final ARPA year in the plan), restricted federal HVAC grant funding had declined, and investment income was expected to rise. The town’s preliminary net tax base was presented at about $5.349 billion (a 0.65% increase), with motor‑vehicle tax already eliminated in FY24 and no direct effect expected from that elimination going forward.

Council President and other members emphasized the need to prevent a school deficit and to plan conservatively. Councilors and the superintendent discussed state funding formula limitations and unfunded RIDE mandates; the school committee chair and councilors said they will continue discussions and demanded more detailed numbers as the state revises aid estimates.

The district will present more detailed budget specifics in the spring. The superintendent and finance staff said they expect more secure figures by March and will submit revised projections and specific budget requests to the council then.

Ending: The joint pre‑budget consultation satisfied the procedural requirements under R.I. Gen. Law 16‑2‑21; town and school officials left the meeting with a plan to continue developing a balanced operating budget, and the superintendent formally requested a 4% increase in municipal support pending clearer state aid figures.