East Greenwich council adopts $90.9 million fiscal 2026 budget, adds $300,000 contingency funded from residential levy

The East Greenwich Town Council on June 9 adopted the fiscal year 2026 operating budget after lengthy deliberation about contingency funding, residential versus commercial tax apportionment and potential risks from unsettled state and federal aid.

Town Manager and Finance Director Trish Sunderland briefed the council on scenarios the staff prepared after the council’s June 5 direction. Sunderland said staff’s revisions accounted for a set of downside risks—uncertain state aid, possible reductions in federal programs and pending labor contracts—and presented multiple levy scenarios. "We had to abate about $268,000 in taxes," Sunderland said when describing valuation appeals and revenue impacts the town had absorbed during the revaluation cycle.

At the start of the evening the council considered the manager’s modified budget that included an added contingency the prior meeting had asked the manager to prepare. An initial motion to adopt the budget option that included a $612,000 contingency failed on a 3–2 vote. Councilors then debated lowering the contingency and how to apportion any additional levy between residential and commercial property owners. Several councilors objected to increasing the commercial tax rate, saying local businesses have recently faced larger rate changes and smaller businesses would be harmed.

To break the impasse, the council voted 4–1 to add a $300,000 contingency to the manager’s proposed budget, with the added contingency to be funded by the residential tax levy. With that change staff updated the totals and the council then approved the final FY2026 budget, 5–0.

Approved budget highlights included a total town budget of $90,889,228; a town transfer to the East Greenwich Library of $618,356 (the council directed staff to absorb the library amount within contingency as discussed); debt service appropriations of $6,438,468; a school transfer of $42,964,865; and a wastewater/sewer fund appropriation of $4,835,593. The manager will finalize and publish the tax rates that implement the budget; council discussion left the commercial tax rate unchanged for FY2026 and directed staff to reallocate the contingency funding through the residential levy as approved.

Councilors and staff noted the town continues to face near‑term fiscal pressures because of three years of elevated debt service tied to the school construction program, ongoing labor negotiations and uncertainty about state aid. Staff said any use of the contingency would require a future council vote and public discussion.