Finance director: district projecting FY26 surplus but equipment, transportation and snow costs could shift results

Leslie Ann Powell, director of finance for North Kingstown schools, told the Budget & Finance Advisory Committee that the district's FY26 budget‑to‑actuals (through January) show revenue exceeding expenses by about $326,982.57 and that, before final year‑end transfers, current projections indicate a potential surplus of $564,006.31.

Powell said the near‑term revenue gains are ‘‘primarily from the tuition from other LEAs’’ for CTE programs, higher investment earnings and a modest uptick in Medicaid revenue. She cautioned that the projection assumes the $500,000 reappropriation remains in its current treatment and that any reappropriation or transfers at year end could change the numbers.

On the expense side, Powell reported a projected salary surplus of roughly $450,000 tied to open positions, including unfilled bus driver and bus TA roles that together account for nearly $200,000 of budgeted but unspent salary. She said benefit encumbrances have been reconciled and that some open positions are not benefit qualifying, so benefits will not rise in a one‑to‑one relationship with filled salaries.

Powell also highlighted pressure in other lines: purchase services include several items the committee previously approved for payment from fund balance (for example, a $75,000 redistricting item and transportation camera/software costs). She said a projected $38,000 surplus in professional services likely will be consumed by snow‑removal charges (the snow budget was $23,000 for the year and was likely exhausted after two heavy storm days). Transportation currently shows a projected $52,000 deficit based on invoices being received and Powell's decision to use the higher end of recent monthly bill volumes when projecting forward.

The equipment line shows a negative $382,000; Powell said much of that represents capital items already approved to be funded from fund balance (student Chromebooks, server hardware, a VxRail purchase) and that several items have come in under budget, reducing the eventual draw on fund balance. She pointed to examples of cost savings, including a server purchase coming in about $50,000 under budget and Chromebooks about $60,000 under budget.

Powell said the numbers are still fluid because some purchases and invoices come in after work is completed (for example, many musical expenses are invoiced after a production), and she said the finance office is keeping a close watch and will bring refined figures forward when available. "If we do not reappropriate the $500,000," Powell said, "we would end up at 0" for the current projection after returning that amount to fund balance.

The committee did not take formal action on the FY26 projection itself but requested that Powell continue to monitor encumbrances, finalize invoices and present updated figures before the next formal transmittal to the town.

Powell's presentation and the committee's questions underscored the key uncertainties facing the district as it closes out FY26: the timing of invoices and year‑end transfers, snow‑removal and transportation bills, and the final accounting of capital purchases previously approved for fund‑balance funding.