Superintendent warns of roughly $4.25 million shortfall in FY2026–27 preliminary budget; committee discusses options
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Summary
The superintendent told the school committee the district faces an estimated $4,254,542 shortfall in the FY2026–27 preliminary budget under level‑funding assumptions, citing state aid declines (high‑cost special education reimbursements) and rising transportation, benefits and contract costs. The committee discussed options including a town CIP ask, limited use of fund balance, and a local appropriation request.
The South Kingstown School Committee received a preliminary FY2026–27 budget report from district staff that projects a multi‑million dollar shortfall under the presentation’s planning assumptions.
After the chair introduced the item, the superintendent reviewed enrollment and staffing assumptions, then walked the committee through revenue and expenditure drivers. He said the district’s enrollment projection shows a slight increase in students in seats for grades above kindergarten, and that the current draft does not propose staffing cuts; instead it uses conservative assumptions on contracts, benefits and state aid.
The superintendent identified several pressures: a projected reduction in state aid tied partly to high‑cost special education reimbursement (he cited difficulty predicting the retroactive formula and noted the district expects a roughly $400,000 loss in state aid), growth in transportation and tuition‑out costs, and higher health‑care and benefits assumptions. He said the district is budgeting teacher contractual increases at 2.5% and paraeducator increases at 2%, and that a recommended 10% planning estimate for health benefits would add roughly $1,000,000 to benefits costs in the draft.
Using those assumptions and a no‑fund‑balance, no‑program‑cut template, the superintendent reported an estimated gap of about $4,254,542 heading into next fiscal year. He said the district will have to decide whether to ask the town for additional local appropriation, use fund balance, change program or staffing assumptions, or pursue a combination of these approaches. The superintendent confirmed the district must submit its budget to the town manager by Feb. 13 and said the finance subcommittee will prepare a recommended FY27 budget for committee approval soon after.
Committee members pressed for clarity on which programs could be trimmed and how much an appropriation request would translate into a property‑tax levy change; several members suggested pairing a request for town funding of capital improvements (CIP) with a separate operational ask to limit maintenance‑of‑effort impact on future budgets. Members repeatedly emphasized that without additional funding the district would face difficult choices affecting programs and staffing.
No formal budget adoption occurred at the meeting; the superintendent said staff will refine numbers, run scenarios for the finance subcommittee and return recommendations to the full committee ahead of statutory deadlines.