South Kingstown reviews FY27 budget as town and school officials weigh options to avoid cutting music and youth sports

South Kingstown town and school officials reviewed the preliminary FY27 operating budgets in a joint public hearing April 14 at South Kingstown High School, emphasizing rising debt service tied to the new high school and a school budget shortfall that officials say must be closed before final adoption.

Town Manager Jim Manny told the council and school committee the preliminary tax levy is about $80.9 million and the townand school preliminary operating budgets are roughly $35.75 million and $64.3 million respectively, producing a proposed FY27 tax rate of about $9.09 per $1,000 of assessed value (up from $8.94). Manny said the townwide debt service in the FY27 preliminary budget is roughly $4.46 million, and that education debt tied to the new high school accounts for about 80% of the debt-service increase.

Those higher debt-service costs and other drivers underlie a substantial budget gap for the school. School presenter Mr. Petraza told the joint hearing that updated assumptions notably higher health (now about 12.06%) and dental (about 8.47%) insurance premiums, a governors proposed reduction in state aid (cited at about $458,000) and other changeshave increased the districts cost obligations by more than $3.2 million since the FY27 submission. He said the districts decision matrix of possible reductions includes items no one wants to cut, such as school music, world-language offerings, afterschool supports, and athletics.

"There is nothing on that list that anyone in the room wants to cut," Mr. Petraza said, adding the district will commit $1 million of fund balance to operations but warned that drawing recurring operating costs from reserves would defer, not solve, structural problems.

Finance director Brian summarized the towns assessed-value growth (net assessed value cited at about $8.88 billion), the distribution of the proposed levy (roughly 72% schools, 28% town) and a multi-year forecast of high-school debt service that accelerates in the late 2020s and early 2030s in the towns projection. Officials also described the state's 4% levy cap and the R.I. statute governing exemptions (R.I. Gen. Law 44-5-2) and said the town could seek certification for an exemption if debt service or other qualifying conditions apply.

Council members and school staff discussed options to close the gap. Finance staff confirmed the towns OPEB (other post-employment benefits) valuation at an estimated 153% funded, and the towns actuary has advised that employer contributions could be reduced in the coming year. Officials said foregoing planned OPEB contributions on both town and school sides could free roughly $1.2 million that could be reallocated to school operations. Council members also noted the school has about $1.2 million in reimbursable capital work submitted to the Rhode Island Department of Education (RIDE) with anticipated housing-aid reimbursement of roughly $423,000; they discussed the timing and "bundling" rules for enhanced reimbursement and the trade-offs between higher long-term reimbursement rates and near-term cash flow.

The hearing closed with an extended public-comment period. More than four dozen parents, students, teachers and residents urged the council and school committee not to cut music and middle-school and JV sports, describing personal and educational harms if those programs are removed. "These students are our legacy," parent Nikki Gardner said. Student speakers recounted how orchestra, band, choir, theater and athletics shaped their school experience and said cuts would reduce school engagement and future enrollment.

Officials said departments will review encumbrances and return final figures at the end of April; the council is scheduled to consider petitions and adopt a final operating budget on April 27. No formal vote was taken at the hearing.

What happens next: town and school finance staff will collect department encumbrance updates (due end of April), finalize any adjustments, and return to the town council for final budget action at the April 27 town council meeting. RIDE-reimbursement questions and capital-project bundling eligibility will require follow-up with state officials to confirm timing and eligible reimbursement rates.