Newport School Committee and City Council Joint Meeting on FY27 Budget Deficit - April 15, 2026

On April 15, 2026, the Newport School Committee and City Council held a joint meeting to discuss the proposed FY27 school budget, which faces a structural deficit of $4.9 million. The School Committee had failed to reach consensus the previous evening (April 14). Superintendent Dr. Jermaine and Business Manager Ronald Gonzalves presented a detailed slideshow outlining cost drivers, staffing reductions, and the revenue shortfall. The city manager and councilors debated the legality and feasibility of the requested 13% increase in local appropriation ($3.8 million). No votes were taken at this meeting; the budget process will continue with at least three more School Committee votes and further joint discussions.

Discussion Items

• Budget Presentation: Superintendent Jermaine reported a projected $4.9 million gap for FY27, driven by rising expenses (salary/benefits +$1M/year, utility increases, out-of-district tuition) and declining enrollment with higher student needs. Special education accounts for 25% of the total budget, with 26% of students having IEPs. The district’s reserves have dwindled from $6.5 million to less than $500,000.
• Current Year Deficit: A $2.8 million deficit is projected for FY26, attributed to higher out-of-district placement costs, utility overruns, and snow removal costs. Business Manager Gonzalves noted that the FY26 budget was balanced by reducing the out-of-district line by $1 million, a “calculated risk” that did not materialize.
• Staffing Reductions: Proposed cuts total $1.1 million: eliminating 8 new positions ($496,000), realizing savings from 6 retirements ($150,000), and not filling 14.5 vacant positions. Specific cuts include truancy officers at all three schools (to be replaced by a part-time position), curriculum coaches, and administrative roles. School Committee member Leary argued the truancy cuts could have long-term consequences.
• Revenue Outlook: The city’s proposed local appropriation is $33.7 million (a 13% increase). Unrestricted state aid is estimated at $15.5 million. Impact aid has dropped significantly; only $37,000 received through March 2026 versus ~$150,000 in prior years.
• Solar Panel Discussion: Dr. Power highlighted that Rogers High School pays $65,000/month ($700,000/year) for electricity. Infrastructure Bank loans could finance solar panels, with potential savings. Councilor Napolitano supported exploring this option. School facilities (Pell, Thompson) were built to support solar but panels were never installed.
• Regionalization: School Committee member Segley urged progress on the Academic Integration Advisory Committee (AIAC) with Middletown to explore regionalization, noting that consultant funds ($250,000) might be redirected for the independent audit.
• Legal Debate: Councilor Carlin argued that the 4% tax cap applies to the municipal levy, not the school budget, and that the school department cannot ask for more than 4% increase from the city. School Committee attorney provided an opinion that the cap only applies to the levy. Councilor Carlin cited state law 16-2-2, maintaining his position. School committee members Winslow and Segley asserted they could request any amount.

Key Outcomes

• School Committee Actions (April 14): The proposed FY27 budget failed to pass (4 votes against: Leary, Cullen, Dring, Powers). The committee voted to freeze all non-essential spending and issue an RFP for an independent audit of staffing and programming to inform financial decisions.
• City Council Position: Councilor Carlin stated he cannot support any increase near 4% without demonstrated fiscal responsibility. Councilor Napolitano noted the city’s history of generous support but called for more “why” from the school department. Councilor Holder emphasized the need for collaboration and realistic budgeting.
• Next Steps: The school budget will be presented at least three more times before the June 30 deadline. The School Committee will work with the city to fine-tune cuts and explore alternative funding. The AIAC will convene within two weeks to advance regionalization discussions.