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Tense exchange over fund balance as residents and board warn against relying on reserves
Summary
Board members and residents pressed district and town leaders over declining reserves and the risk of using fund balance to cover recurring school costs, with a longtime teacher describing out‑of‑date labs and constrained classrooms.
During questions and public comment at the April 7 Smithfield Budget and Financial Review Board meeting, several members and residents urged caution about relying on fund balance to balance recurring school costs and called for clearer town planning.
Board member Richard said the town has drawn on reserves in recent years and that continuing to use fund balance for recurring expenses is unsustainable. "We have lost $4.5 million since 2020," he said, warning that further withdrawals without replenishment would force larger tax increases or cuts later.
A longtime teacher and resident described classroom and lab conditions during public comment, saying she often cannot use an up‑to‑date science lab and must move materials between floors because the middle‑school elevator is out of service. "I'm a science teacher... I'm working in a room that is set up so I can't use the science lab. The science labs are really out of date anyway," the commenter said.
Board members asked for a clearer multi‑year plan showing how town and school budgets would sustain contractual obligations and capital projects. Staff agreed to provide audited fund balance history, more detailed trend lines for variable expenses (special‑education tuition, contracted services, substitute staffing) and to answer follow‑up questions on how reimbursements from RIDE would flow back through town capital accounts.
What happens next: town council members will consider the town manager’s proposed allocation; several board members encouraged public attendance at upcoming council budget hearings and asked staff to return with the requested trend analysis to inform those deliberations.
