Mayor Frank Picozzi and Warwick School Committee Chair David Testa have been on good terms throughout their respective careers as municipal leaders. That may change.

When the School Committee posted the agenda for its meeting Tuesday, it listed possible litigation against the city as a matter to be discussed in executive session. At issue is an additional $752,000 in state funding to Warwick schools resulting from General Assembly action to increase school aid statewide over what the governor budgeted.

In his budget Picozzi allocated $185.9 million for schools, which was $1.4 million less than what schools requested. The city appropriation included $1 million from what the city received in American Rescue Plan Act funding  with the condition if state funding to schools increased, the city would hold on to the ARPA funds for other purposes. That plan was enshrined in the final sentence of the mayor’s budget message to the council and released to the public.

On June 6 the School Committee trimmed its budget by $1.4 million to match the city allocation. That same day House Speaker K. Joseph Shekarchi announced House approval of an increase in state aid to schools, giving Warwick an additional $752,000 this year.

Now the school administration and Testa say Warwick schools are entitled to the $750,000 plus the $1 million in ARPA money.  State funds for schools pass through the city, however, by state law the city cannot withhold them.  Picozzi contends no such restriction applies to the ARPA funds.

In an interview Tuesday, Picozzi said he made it clear to Testa, “if the state came up with additional money, I would take it (ARPA funding) back.”  To do otherwise, he said, would require council action since the council approved the budget with the understanding if state funding increased the city would keep the ARPA funds.

This week City Council President Steve McAllister received a letter co-signed by Superintendent Lynn Dambruch and Testa reading that the “monies (the $752,000) are intended to be allocated to the schools and not to supplant the City’s appropriation to the schools.” The letter goes on to cite state law supporting their position. McAllister said the correspondence has been referred to legal counsel.

As he reads the letter, Picozzi said Wednesday schools are looking to keep the $752,000 plus the $1 million in ARPA funds.

Picozzi said he met with Testa, and Testa told him the department wants the money. He said he was surprised, since he believed they had an agreement and have always had a good working relationship. He was even more surprised when the committee posted the agenda for Tuesday’s meeting and listed litigation as a matter to be discussed in executive session.

While the two did not reach an agreement on the $752,000, Picozzi did not feel it had reached the level of litigation. Use of the word triggered inquires and a story by the Boston Globe.

Picozzi said he intended to present his position to the School Committee and administration during the public comment portion of Tuesday’s meeting. When he learned public comment followed the executive session and that quite possibly a vote would have been taken, he decided it would be futile.

As it turned out, no vote was taken in executive session.  Testa said the letter was sent to McAllister.