Newport school board warns state budget impasse could force short-term borrowing

The Newport Board of School Directors heard Oct. 14 that a state budget impasse has left the district roughly $4 million short of expected revenue and could require short-term borrowing early next year.

Jamison Magaro, the district’s director of finance and operations, told board members that district revenues are about 34% of expected collections so far this fiscal year compared with a historical average of roughly 39%, while expenditures are about 22.9% versus a typical 25%. He said much of the district’s local revenue arrives in September and that, projecting month to month, the district could expend reserves by February or March 2026 if the impasse continues.

Superintendent Ryan Neuhard stressed the impact, saying, “We are doing our jobs and surviving and doing what we have to do for our students and staff to continue.” The board received the budget reports for August and September and approved them by roll call (7 ayes, 0 nays, 2 absent).

Why it matters: the district uses state funding for routine operations and to support programs; an ongoing delay in payments reduces cash-on-hand and can force districts to seek short-term loans or other cash-management measures. Magaro estimated the shortfall at about $4 million and noted an estimated $30,000 in interest income the district missed through November because of the delay.

Board members did not adopt new cuts or a specific borrowing plan at the meeting. Instead, they approved the condensed budget reports and directed administration to continue monitoring cash flow and advise the board if short-term financing or other actions become necessary.

The board’s next regular meeting is scheduled for Nov. 18, 2025, when finance staff said they will update members on cash-flow projections and any recommended actions.