Newport City Council Special Meeting on FY2027 Budget – May 19, 2026

The Newport City Council held a special meeting on May 19, 2026, to conduct the first reading of the Fiscal Year 2027 budget. The meeting lasted approximately four hours and included extensive discussion on the school budget deficit, bond issuance costs, proposed new city positions, and the property tax levy. Council approved several amendments to the budget, including a 4% levy increase, a zero tax increase for owner-occupied residents, full 4% school funding, and additional funding for roads and sidewalks. The budget was approved on first reading with several items to be finalized at a later hearing.

Public Comments & Testimony

• Caden Betts (senior at Rogers High School) urged the council to increase the 4% cap on school funding, arguing that underfunding leads to larger class sizes, teacher burnout, and declining enrollment. He requested the council bring the matter to the Rhode Island General Assembly.
• Ida Neerie (parent of a Rogers student) presented a historical analysis showing that from 2011 to 2027, the city has funded schools at an average of 1.6% increase per year, far below the maximum 4%. She stated that the current deficit is a 15-year structural issue and that the city needs to increase funding to 13%.
• Cabinet Munter (22 Homer Street) asserted that Newport is not a poor town and has enough wealth to fund schools, criticizing the city's tax aversion and urging higher taxes on billionaires and second-home owners.
• Amy Ozura (102 Warner Street) highlighted the loss of reading specialists, math specialists, and mental health professionals due to chronic underfunding, and noted that Pell Elementary no longer has a librarian. She supported a one-time conveyance tax to fund education.
• Liz Barron (3 Ledyard Street, parent and school psychologist) called for full school funding, stating that budget cuts result in larger class sizes, less mental health support, and educator burnout. She urged the council to exceed the 4% cap if necessary.
• Grania Phelps (32 Cranston Avenue, teacher) argued that students and teachers should not bear the blame for the deficit. She asked the city to take over costs for snow removal, grounds care, and healthcare for school committee members, which she said are city responsibilities.
• Becky Bolan (former school committee member) provided a list of positions cut over the last three years, including intervention teachers, librarians, truancy officers, and administrative support. She noted that 17 teachers were laid off for FY27 and that only one administrative position (non-principal/vice-principal) was cut.
• Patrick Wygant (teacher at Rogers High School) repeated the 1.6% average funding increase statistic and stated that all intervention programs in reading and math have been eliminated. He said the issue is a values problem, not a budget problem.
• Gene McLaughlin (4 Ledged Street, parent) advocated for thinking outside the box, such as using the ALP program to serve out-of-district students and building an indoor track to generate revenue. He also noted that teachers in the ALP program received layoff notices.
• Christine Sullivan (26th Admiral Kalpus Road) called for an immediate hiring freeze on city employees and redirecting funds to save teacher jobs.
• Ian Conroy (3 Channing Place) offered to forgo his primary residence exemption and pay higher taxes if it would bring back teachers.

Discussion Items

• Point of Personal Privilege: Councilor Carlin expressed deep concern that a resolution (continued from a previous city council meeting) regarding the Castle Hill Inn CRMC permit was not on the agenda despite a 4-0 council vote to continue it to this meeting. He stated he asked the city administration four times for an explanation and received no response.
• Budget Change Sheet and Council Amendments: Council approved several small additions: $15,000 for tree conservancy, $35,000 for cemetery commission, $10,000 for Edward King House Senior Center, $8,000 for an accessible door on the second floor of city hall, $32,000 for tow and disposal of abandoned campers, and $50,600 for special events (fire department and DPW). The change sheet also included a $396,000 reduction in debt service (bond interest and principal) due to lower interest rates and market conditions.
• Bond Counsel and Underwriter Selection: Councilor Carlin and Councilor Comzavarovang questioned the city administration about the selection of bond counsel (Karen Grandy, Troutman) and underwriters (Raymond James and Wells Fargo) for a $36 million infrastructure bond issued in April 2026. They noted that the contracts were not brought before the council for approval, despite expenditures of $55,000 for bond counsel and $136,000 for underwriter fees. The city manager and finance director argued that legal services are exempt from competitive bidding under state law and that the practice has been long-standing. Councilor Carlin called the lack of council oversight inappropriate. Councilor Comzavarovang stated that while the vendors were good, the lack of council approval for such large expenditures was a loophole in public oversight. The administration agreed to bring future bond issuance costs before the council.
• School Budget Deficit and Funding: The council and school superintendent Dr. Jermaine discussed the school department's projected $2.1 million deficit for FY27. Dr. Jermaine explained that even with the 4% city contribution increase ($1.1 million), 17 teachers would still be laid off because of the gap. The deficit was attributed to higher than budgeted electric costs at the new Rogers High School (approximately $500,000 per year), special education costs, and rising operational expenses. Councilor Carlin criticized the school department for not alerting the council until April, despite the deficit being known since August 2025. The superintendent stated that monthly financial reports were sent to the city's finance department, but several councilors said they did not receive them. Councilor Segley proposed the city take over the electric bill at Rogers High School, but the motion was withdrawn after discussion about maintenance of effort and the need for more information on solar panel installation.
• Proposed New City Positions: The council discussed six new positions in the utility enterprise funds (assistant supervisor, distribution supervisor, water meter supervisor, customer care associates, and parking superintendent) with total salary and benefits costs exceeding $600,000. Councilor Carlin and Councilor Comzavarovang argued that adding positions while the schools were laying off teachers looked bad and suggested a hiring freeze. The city manager noted that the utility positions are funded by enterprise funds and cannot be directly transferred to schools, but acknowledged the timing was awkward. A motion to remove those positions from the enterprise fund budgets failed for lack of a second.
• Levy Increase and Tax Rate: The originally proposed levy increase was 1.87%. Councilor Comzavarovang proposed a consolidated motion to increase the levy to 3.95% (just under the 4% cap), hold the owner-occupied residential tax rate flat by increasing the exemption from 24% to 25.5%, fully fund the schools at 4% ($1.1 million increase), allocate the remaining additional revenue to roads and sidewalks, and realign the administration and finance and resilience and sustainability departments under the deputy city manager for better oversight. The motion passed 5-2, with Councilors Napolitano and Smythe voting against, citing lack of time to fully understand the proposal. Councilor Carlin noted that the motion ensured no tax increase for full-time residents.
• Enterprise Funds and Personnel Ordinance: The council voted separately to approve the enterprise fund budgets (utilities and parking) as presented, which included the six new positions. The personnel ordinance was also approved on first reading, incorporating the new positions.

Key Outcomes

• Approved Amendments to Budget Change Sheet: $15,000 for tree conservancy, $35,000 for cemetery commission, $10,000 for Edward King House Senior Center, $8,000 for accessible door, $32,000 for abandoned campers, and $50,600 for special events.
• Approved 3.95% Levy Increase: With a zero percent tax increase for owner-occupied residents, achieved by increasing the exemption to 25.5%. The additional revenue funds the full 4% school contribution ($1.1 million) and additional roads and sidewalks funding.
• Approved School Appropriation at 4% Increase: The city's contribution to the Newport Public Schools for FY27 will be the maximum 4% increase, providing $1.1 million in additional funding.
• Approved Enterprise Fund Budgets on First Reading: Included six new utility and parking positions, despite council concern about timing with school layoffs.
• Approved Personnel Ordinance on First Reading: Authorizing new positions in enterprise funds.
• Directive to Administration: The city manager agreed to bring future bond issuance costs and underwriter selections before the council for approval.
• Budget to Be Finalized at Second Reading: The first reading was approved; a second reading and public hearing will be held at a later date (likely within two weeks) to finalize the FY2027 budget.