School officials present revised FY2026 budget; committee adopts update with $130,000 contingency

The South Kingstown School Committee approved an administrative recommendation to adopt a revised FY2026 general fund budget after the district’s finance team reconciled changes since the March adopted budget.

Tony Ferrucci, the district finance officer, told the committee that the town enacted a level municipal appropriation that left the district about $500,000 short of what it had expected. That shortfall was largely offset this year by one-time funds from the district’s departure from a self-insurance cooperative and by somewhat higher state aid totals. “You went to a new style program where you're paying premiums to the trust...the funds that were remaining in the cooperative…are now available,” Ferrucci said, explaining the one-time $608,000 transfer the district expects. Ferrucci also said recent state aid calculations increased the district’s revenue by a little over $100,000.

On the expenditure side, Ferrucci reported salary increases of about $93,000 compared with the adopted budget and a reduction in fringe-benefit costs of roughly $87,000. Taken together with other adjustments, Ferrucci said the district shows about $130,000 available as an undesignated contingency for FY2026. He cautioned the committee that the $608,000 cooperative payment is one-time and will not be available in future years, so long-term balance will require either revenue increases or cost reductions.

Committee members thanked Ferrucci and administration for the detailed reconciliation and asked that the contingency be tracked in the district’s accounting system. A motion to accept the budget update carried by voice vote; the minutes note that member Brad Shear had stepped out and was not part of the vote.

District leaders said the $130,000 contingency will be held to address immediate priorities identified by the superintendent and that any ongoing commitments beyond FY2026 would need separate approval and funding. Ferrucci told the committee the administration had set a clear, line-item presentation and would provide further detail on specific object codes and any remaining open FY2025 encumbrances.

What’s next: The committee adopted the revised budget; administration will return with any recommended allocations for the contingency and will monitor FY2027 revenue assumptions, given the one-time nature of some FY2026 funds.