East Greenwich manager proposes $90.5 million FY2026 budget; levy increase of 4.93% highlighted

Town Manager Andy Nada presented the East Greenwich proposed fiscal year 2026 operating and capital program at a May 19 special meeting, saying the overall budget package totals about $90.5 million and would produce a tax levy increase of 4.93 percent.

The proposal would hold the town’s general fund at roughly $28.5 million while the school operating budget totals about $50.2 million, of which just under $43 million would be supported by the property tax transfer. Nada told the council the residential tax rate equivalent would move from $14.73 to about $15.46 under the manager’s proposal. He said the increase above the state’s 4 percent default levy cap is driven primarily by rising debt service tied to the first interest payments on the school construction initiative and by lower investment income.

The town manager said bond activity planned for June will create approximately six months of interest expense in FY2026, producing an estimated net debt impact of about $1.8 million. Debt service overall was described at just under $4.3 million, a roughly 20.5 percent increase in that category in the manager’s slides.

Why it matters: the municipal levy funds public safety, public works, library and other town services along with the tax transfer for schools; the council must adopt a final budget on or before June 10.

Key numbers in the manager’s presentation included an overall budget of $90.5 million; a general fund near $28.5 million; a school operating request of $50,185,000; and a proposed $10,000 (1.7 percent) increase for the library fund. Nada described the proposed increase to the school tax transfer as the manager’s 4 percent request and said the school department itself requested about $1.6 million over current transfers. The manager also noted other revenue and proprietary funds that together produce the $90.5 million program.

Councilors and staff discussed next steps for adoption. The Town Council closed the public hearing on the FY2026 departmental budget at the May 19 meeting and will continue deliberations at meetings scheduled to review the overall program; the manager noted a follow-up session on May 27 and an additional meeting on June 9 ahead of the June 10 statutory deadline.

Quotes: Nada said the budget process began last fall with capital planning and that the manager is required by the town charter to present a budget on or before May 1. Council President Mark Schwager moved to close the public hearing, and the motion passed unanimously.

The presentation included departmental detail and a series of follow-up slides that the manager and finance staff said would remain available in the larger budget document for public review. Councilors asked for scenario runs and comparisons to prior years, and the manager said staff could provide tax-impact scenarios for different appropriation levels at the next meeting.

Ending: With the public hearing closed, the council will reconvene to consider specific changes and to set the tax rates before the statutory adoption deadline.