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Coventry leaders map five‑year plan as school deficit falls but not gone
Summary
Superintendent Don Cowart and the town finance director presented coordinated five‑year projections showing the district’s accumulated $5.8 million deficit substantially reduced by a $1.3 million 2025 fund balance and higher Medicaid reimbursements; council and school committee discussed contract assumptions, town contributions and a deficit‑reduction plan to submit to the state auditor.
Don Cowart, Coventry’s superintendent, presented a five‑year projection for the school department on the joint council‑school agenda, framing it as a planning tool rather than a finalized budget. Cowart said the district has accumulated “about $5,800,000” in deficits and that audited results for 2025 put the district in a better position with an expected $1,300,000 fund balance that applies to the bottom line.
Why it matters: officials said the projection guides decisions on deficit reduction, staffing and capital priorities and drives the town’s own five‑year budget work. Town and school leaders said the projection affects what the town must fund and how quickly the deficit can be eliminated.
Key assumptions and drivers: Cowart said the district lowered expected local appropriation growth from 2.4% to 2.0% after receiving the town’s updated revenue projection, and the district used conservative assumptions — a 2% placeholder for unresolved teacher‑contract increases and a 7.5% estimate for healthcare cost growth. Cowart said the district has focused on maximizing Medicaid reimbursement as a revenue source and attributed a large portion of recent improvement to those efforts, saying Medicaid revenue rose and accounted for roughly $1 million of the change.
Town finance director (Director Savetti) laid out the town side of the projection and explained why the town reduced its planned annual deficit‑reduction contribution compared with earlier plans. Savetti said auditors showed the town’s internal service (healthcare) fund would show roughly $1.2 million surplus through June 30, 2025, and that he proposed the town contribute approximately $2,000,050 toward deficit reduction across the projection horizon instead of the larger earlier figure. He also described how debt service on the $25 million school bond and estimated state reimbursement (he cited roughly 48.2%) feed into the town’s forecast.
Council questions and next steps: Council members pressed school and town staff on whether Medicaid revenue is durable (some called it politically sensitive at the state level) and on the timing of a teacher‑contract ratification; school committee members urged the council to consider acting on the contract before the end of the year to lock in savings. Town and school leaders said they will finalize a deficit‑reduction plan for the Office of the Auditor General ahead of a January 14 meeting. State law limits deficit‑reduction plans to a maximum of five years, officials said.
What’s next: officials said they will provide up‑to‑date contract numbers to incorporate into projections and will return recommended deficit‑reduction steps to both bodies for formal adoption and submission to the auditor’s office.
