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Portsmouth school leaders propose FY26 operating budget that would push town past 4% tax-cap
Summary
The Portsmouth School Committee reviewed an initial FY26 operating budget draft showing a 5.9% increase in expenditures and a projected town appropriation that would exceed the town's 4% cap, prompting further revision and a public review timetable.
Portsmouth School Committee members reviewed the first draft of the Portsmouth School Department's fiscal year 2026 operating budget during their regular meeting, hearing that the proposal would raise expenditures 5.9% and require a 5.66% increase in the town tax rate — exceeding the town council's 4% cap if unchanged.
The draft, presented by district leadership and finance staff, would increase compensation costs by about 4.1% and employee benefits by 8.9%. It includes new staff requests (a modern world language teacher and a special education teacher at the middle school; a math teacher, a registered behavior technician and a school safety officer at the high school), the return of permanent building-based substitutes for each school, and modest increases in instructional and technical positions. The presenters said the draft also assumes flat state aid in the governor's proposal but noted state aid estimates may be corrected downward.
Committee members were told the draft forecasts revenue and expenditure drivers including a projected rise in out-of-district tuition revenue (driven by CTE enrollment), health insurance premium increases, pension contribution increases tied to the Employees' Retirement System of Rhode Island, and higher districtwide transportation and special-education tuition costs. District staff explained the draft currently implies a municipal appropriation that would push the townwide tax-rate increase to 5.66%, or 1.66 percentage points over the 4% cap the town council can approve without voter referendum.
Details reviewed at the meeting included: an expected roughly $119,000 increase for private pension payments tied to town actuarial calculations; an anticipated 8% rise in health insurance premiums (about $328,000); a projected $398,000 increase in student transportation costs (about 10.8%) because of contractual CPI and increased in-district and statewide special-education transportation; and planned equipment purchases such as a lift and trailer for maintenance. Presenters said some large account lines were reclassified this year (insourcing custodial supplies and moving certain software costs between UCOA accounts) and that the report was normalized for year-over-year comparison.
The committee voted to move the draft forward for discussion. Staff said the next steps are a second draft to be presented on February 25 and a final draft targeted for committee approval on March 11. The school department will present its budget to the town administrator and then to the town council on April 29 as part of the municipal budget process. Presenters emphasized that the town council's deliberations and the General Assembly's final state-aid decisions could change the district's final request.
Committee members raised questions about assumptions for state aid and the impact of the pension contribution changes that altered last year's budget trajectory. Staff said they will seek adjustments in subsequent drafts to avoid personnel or program cuts where possible and will present specific reductions in Draft 2 if the committee directs them.
The committee scheduled feedback and discussion for the next meeting, and staff said they will incorporate finance subcommittee input before issuing Draft 2.
Ending: The school department will present a revised budget on Feb. 25 and seek committee approval in March; presenters cautioned that state aid finalization and town council actions will determine the final tax impact and any program changes.
