Newport School Committee and City Council Joint Budget Meeting on FY27 Deficit - April 15, 2026
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.
Meeting Transcript
Denn Ronald Gonzals, I'm the business manager, Newport Public Schools. Steph Smythe, Newport City Council. Alan Connect, Newport City Council. Lynn Segley, Newport City Council. Charlie Holder, Newport City Council. Becky Bolin, School Committee. Stephanie Winslow, School Committee. Bob Power School Committee. Beth Cullen, School Committee. Zai, City Council. Bobby Larry, School Committee. Sandra Flow is school committee. Colin Kennedy, Newport City Manager. All right. Thank you. And uh just want to remind everyone that you speak into the microphone and then your microphone is on for the uh recording of the tape. So we're gonna go back and watch it later. Uh so we we'll get started off. Uh I'll turn it over to uh Chair Dring. I just want to give a little bit of background on last night we we did have a meeting. And unfortunately, as a school committee, we were not able to come to a consensus on the budget. So what we have tonight is we're bringing forward um what we have so far. Um, this is the beginning. We're gonna have probably at least three more votes on the school budget. Um, I know we have to get this done by the end of June, and we will. Um, you know, but yeah, last night was the first step, and here we are today to to talk to you guys about a budget that I think everybody knows has a significant amount of pain in it. Um I remember last year when I sat here, I said this coming budget is gonna have pain in it. Um it's gotten significantly worse. Um, you know, for a variety of different reasons, and we're gonna get into that when we start our slideshow, and we have our fine instructor here, and you can get into the the nuts and bolts of it as well as the superintendent. Um I'll turn it back to um and as we go through the uh through the report at the end of it. Then if anyone from the public has any questions, we'll we'll uh allow you to ask those. Uh so Madam Superintendent, I'll turn it over to you. Okay, thank you. Um Mr. Holder. Um I'd like to also before we begin, I'd like you to at least see who the people are that are in the buildings leading the buildings. I'm gonna stop start in the back row with Beth Raffa. Could you please stand, wave, smile, do whatever? Uh Dr. Browner, Michael Browner, both Thompson Middle School, uh Kathy Nash, uh right there, who we know runs the district, and then we have Ashley Zarugian, she's our HR director. Patty all, director of teaching and learning, right next to her is uh Penny, and you go by Penny just Penny. Okay, Penny Hunt. Uh uh, she's uh part of our finance committee. And then we have Michael Monahan, our acting super um almost acting principal. Then we have Mr. Rice, our neighbor and friend. Then we have Robert Director, uh Robert over here, Young, director of uh operations, tech and NAC Tech, and going way back to the beginning. We have Ronnie Lee Mooney, Dr. Mooney, she's our director of ELLMLL. Then we have Director Candace Andrade, who oversees special ed, and then we have Tracy Westman who oversees our elementary.
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