Foster‑Glocester budget with 0% local increase fails after public concern over state aid and fund balance

Pontaganset High School, Gloucester, R.I. — Voters at the Foster‑Glocester Regional School District’s annual financial town meeting on March 24 rejected the district’s proposed FY2026–27 appropriation after sustained public questioning about the budget’s revenue assumptions and contingency planning.

Dr. Renee Palazo, the district superintendent, opened the presentation by stressing the district is proposing “a 0% increase in local appropriations,” noting the appropriation is the amount requested from towns to support district operations and debt service. She and business manager Anne/Ann Goodro described a roughly $882,000 overall expense increase for FY2026–27 that the district says is largely offset by revenue, and identified about $553,000 of that rise as higher purchased‑services costs tied to out‑of‑district special‑education placements.

The superintendent and staff emphasized the district has budgeted a $400,000 use of fund balance as a contingency in case state aid or tuition revenue falls short. “We budget a set‑aside this year and have done so for many years,” Palazo said, explaining the practice is intended to protect the district if final state aid differs from January estimates.

Several audience members challenged that approach as relying on one‑time revenue to balance an operating budget. Resident Brian Kelly told the meeting, “This budget as it’s presented has a structural deficit,” arguing that counting the $400,000 contingency as recurring revenue understates risk if the state’s January aid estimate is reduced.

Other speakers pressed for more detail on administrative compensation and stipend lines. Residents asked whether a $6,000 school‑clerk stipend is additional pay or already contained in contract language and whether additional hourly compensation for AP A/public‑records work appears elsewhere in salary lines; officials said the $6,000 is part of the clerk contract language and additional hourly pay for extra meetings is recorded in salary accounts.

The meeting devoted substantial time to career and technical education (CTE). Palazo and Karen Sarcis, director of student supports, described 17 RIDE‑approved CTE programs, related grant awards, and the district’s tuition‑revenue model for out‑of‑district students. District presenters used an illustrative average tuition figure of about $18,700 per sending student to show how tuition can materially affect revenue; they warned that losing CTE capacity would reduce tuition income and could prompt out‑migration of students.

During public comment residents also asked why the budget did not include funding for an independent investigation into an indicted former staff member; officials said that matter will be an April school‑committee agenda item but is not currently budgeted for FY2027.

After discussion, the assembly conducted the prescribed vote and officials announced 103 “yes” votes; the moderator declared the motion to appropriate the budget failed. The meeting then moved through a series of procedural motions — including proposals to increase the budget by $400,000, motions to table and amend, and contested points of order — before the assembly voted to recess amid continuing dispute.

What happens next: Because the appropriation motion failed at the meeting, the district and towns will need to follow the statutory procedures for adopting a budget consistent with state law and local rules; the school committee and town councils may reconvene to act on budget alternatives or return the question to a subsequent meeting. The school committee also scheduled the requested discussion about the independent investigation for its April meeting.

Sources: Budget presentation and remarks by Dr. Renee Palazo and Anne/Ann Goodro; public comments from voters including Brian Kelly and Patricia Henry; meeting motion and vote tallies announced to the assembly.