East Greenwich council directs $612,000 contingency and fully funds Scrinich Library ahead of final budget vote

EAST GREENWICH, R.I. — At a June 5 special budget work session, the East Greenwich Town Council instructed the town manager to add $612,000 to the budget contingency, to be funded by increasing the town tax levy, and directed full funding of the Scrinich Library at $618,356. The single motion combining both instructions passed by a 3–1 vote.

The contingency addition was proposed by town staff as a precaution against multiple fiscal risks cited in the meeting: uncertainty in state and federal aid, the phase-out of American Rescue Plan (ARPA) funds, outstanding labor contracts, and the near-term debt service from the town's school construction project. Council members considered lower and higher contingency options before endorsing the $612,000 figure.

Council President Mark Schwager said the additional contingency would offer "extra reassurance" as the town faces possible funding changes and a large upcoming bond issuance. "I would like a little extra reassurance that in the event that we do have some things that go against us, that we would be able to stabilize our finances and appear strong financially," Schwager said during the session.

Library Director Adrian(ne) Gerard told the council that fully funding the library would "help us to run the library, to keep the doors open, to keep the lights on" and pay basic building and personnel costs. Gerard said the library is pursuing grants and private fundraising but that municipal support would close an immediate operating gap.

Town Manager Andy Nada and the finance director presented the budget context and several contingency scenarios. The manager's proposal before the council represented a 4.93% increase in the levy (about $3.2 million) and included a residential rate increase from $14.73 to $15.47. Staff showed four contingency options the council could add to the proposed levy: $204,000 (raising the levy to 5.24%), $306,000 (5.4%), $612,000 (5.87%) and $918,000 (6.34%). The council voted to add the $612,000 option.

Council discussion stressed two competing priorities: protecting the town's credit rating and fiscal flexibility by increasing reserves versus limiting near-term tax increases for residents, especially those on fixed incomes. Some council members said they preferred a smaller or phased increase and noted the council could re-evaluate and add funds in the next budget if conditions required it.

The motion the council passed combined two directives: to "fully fund the Scrinich Library at $618,356" (source of the appropriation to be determined by staff) and to "add $612,000 to the contingency line, to be funded through increasing the tax levy." The council voted 3 in favor, 1 opposed. The council did not record an individual roll-call vote in the transcript; the record shows the tally and that the motion carried.

The council will take the formal vote to adopt the fiscal 2026 budget, including any amendments to the contingency and the final levy, at its regular meeting on Monday, June 9. Staff said they will present the final consolidated numbers and the tax impact for adoption at that meeting.

Background and context: Town staff reported that all budgeted funds (general fund, school fund, library and wastewater) total about $90.5 million, a roughly 4.17% increase over FY25. The school transfer in the manager's proposal was about $1.65 million (4%), and the manager noted a loss of roughly $750,000 in federal grants for emergency communications equipment. Staff also warned that state budget actions, reductions in federal aid, and the phase-out of ARPA funds could materially affect revenues and require adjustments in coming months.