West Warwick reviews FY2026 budget proposal as pension, insurance and school costs drive increase

Town Manager Mark opened the West Warwick fiscal 2026 budget workshop on Monday, saying the meeting was the second public workshop where the council and the public begin reviewing the proposed FY2026 budget.

The town manager presented a proposal that he said increases the overall budget by slightly more than $5,900,000, including roughly $1,700,000 in municipal expenses, about $3,100,000 for school state-aid pass-through appropriations and a requested $991,000 increase to the school department appropriation. He said the levy increase was calculated at 4% under one revision and that the estimated tax rate noted in earlier materials had moved from 2.45 to about 2.38 per $1,000 of assessed value as tangible returns are updated.

Town Manager Mark said the proposal assumes a 97% tax-collection rate and that the town is not planning to use fund balance in the FY2026 budget. He also noted several cost pressures: employer rates from the Employee Retirement System of Rhode Island (ERSRI) have increased and were applied to pensionable salaries; healthcare premiums rose about 5.2%; property and liability insurance increased about 7.5%; and workers' compensation expenses rose because of a slightly higher experience modification.

Why it matters: the combined effect of pension rate changes, higher insurance and healthcare costs, and required school pass-throughs are the principal drivers of the town's proposed spending…