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Portsmouth officials approve budget transfers as electricity costs push district over budget
Summary
The Portsmouth School Committee approved multiple budget transfers on May 12, including two transfers of $45,372.78 and $34,115.89 to cover health‑premium and snowplowing shortfalls. The district reported it is $62,000 over the electricity line and projected the final variance could approach $200,000, citing increased usage, distribution cost increases and prior-metering delays.
The Portsmouth School Committee on Tuesday approved several budget transfers and heard a finance report that flagged mounting electricity costs across the district.
Business manager Mister Dierro told the committee there were four transfers greater than $5,000 since his last report and called out two large journal entries: journal #192 for $45,372.78 to cover a health‑premium shortfall and journal #199 for $34,115.89 to cover remaining snowplowing costs from this winter's blizzard.
"We're currently $62,000 over our budget of 406,000," Dierro said. "I'm actually projecting that to be closer to $200,000 by the time we're done with the year." He attributed the variance to increased usage from new air conditioning in three buildings, roughly 20% higher distribution costs, and problems caused by meters that had not been installed on some buildings for about a year.
Committee members probed the accuracy of utility billing and meter reads. One member said similar irregularities had been reported around the state; Dierro noted National Grid system changes and a subsequent takeover by Rhode Island Energy as part of the billing problems and said utilities had recovered about $2 million in related credits statewide.
The committee voted unanimously (7–0) to approve the transfers and other consent items. Finance also reported an unbudgeted $100,000 equity distribution tied to liquidation of the East Bay Educational Collaborative, and the business manager said there may be a smaller additional distribution depending on final settlement of liabilities.
The district will continue monitoring the electricity line and examine potential audit or forensic review options for billed irregularities, according to the finance report. The committee did not vote on any forensic audit at the meeting but discussed options for follow‑up with the superintendent and finance staff.
