East Greenwich holds required pre-budget consultation as town and schools flag state-aid uncertainty and rising special-education costs

Town Manager Andrew Nada and school leaders convened a joint pre-budget consultation on Dec. 8 under Rhode Island General Law 16-2-21.2(D) to review early revenue and expenditure projections and begin planning for fiscal year 2026.

Andrew Nada, the town manager, told the council and school committee the town’s budget calendar anticipates final adoption by June 10 and that a 4% tax-levy cap at the state level remains a central constraint. "February is traditionally a little better" for substantive budget discussion, Nada said, noting the town will monitor possible legislative changes to the levy cap and may seek exceptions if necessary. He stressed that the levy cap and any state changes will affect both the town and school budgets.

Nada presented preliminary FY25 figures, calling the numbers "very early" and subject to weekly change. He said the town is projecting approximately $1.1 million in tax payments and departmental revenue that together could produce a modest GAAP surplus; his presentation cited an early total GAAP surplus estimate in the mid‑hundreds of thousands of dollars and an estimated town-side surplus near $375,000, but he cautioned those figures could shift before year end.

The town also reported reductions in reported post‑employment (OPEB) liabilities driven primarily by new actuarial assumptions and fiduciary accounting, with example figures cited in the presentation reflecting decreases compared with the prior year. Nada emphasized those changes reflect actuarial assumptions rather than benefit reductions.

On the school side, district leaders — including assistant superintendent Sarah Kordmash O'Brien and budget lead Maggie Baker — outlined major cost drivers for the FY26 budget. The superintendent (name not specified in the meeting record) said teacher contract negotiations, rising health and dental costs (budgeted conservatively at roughly 6–7 percent), and increasing special-education expenses are the dominant pressures. "Special‑education students are costing more money," the superintendent said, adding that the district is proud to serve those students but that the state funding formula does not fully cover the cost.

Maggie Baker explained the school revenue mix and early FY25 budget projections, saying town appropriation and state aid represent about 97 percent of the district’s revenue. She also described categories that drive expenditures — transportation, tuition for students placed outside the district, purchase services (interpreters, therapists), supplies and debt service — and said some unfilled positions have temporarily reduced salary and benefit costs.

Council members pressed for detail on fund balances, with the town manager noting comparable communities often target a fund balance near 17 percent and saying East Greenwich is near the lower end of that range. Councilors and school officials agreed on the importance of coordinated advocacy at the State House to protect local education aid if the General Assembly considers formula or levy‑cap changes.

The joint session closed with town and school leaders agreeing to continue detailed planning through February and to provide additional data as state revenue estimates and enrollment figures firm up. The superintendent and town manager said they will present updated numbers and further recommendations as the budget development process proceeds.

Next steps: the town and school departments will continue work on the FY26 budget, present refined projections in winter/spring revenue‑estimate updates, and engage with state legislators if changes to the levy cap or education funding formula appear imminent.