If one thing rings true about the school budget hearings that start this evening, it’s School Committee Chair Shaun Galligan’s assessment that “this is a very unique budget cycle.”

Consider the developments since the School Department disclosed to the state auditor general in late December that without corrective action it was headed for a $9-million deficit in the current operating budget.

• The School Committee trimmed operating costs, with the most significant cuts being made in pension-fund contributions to the Warwick Independent School Employees, amounting to more than $3 million. Those cuts must be undone, making for a structural deficit going forward.
• The school administration advanced a five-year plan to work its way out of deficit spending that was largely dependent on 4% annual budget allocation increases from the city. Mayor Frank Picozzi says those infusions are not sustainable.
• Picozzi, with council approval, called for legislation to allow the establishment of a school budget commission, which only recently was named. The commission will approve the school budget for the upcoming fiscal year as well as draft a five-year plan to amortize school debt.

So, what does the school administration budget look like for 2025-26?

• It calls for expenditures of $199.7 million, which relies on an additional $5.6 million in city funding and an anticipated $2.5-million increase in state aid.

Interim Superintendent William McCaffrey  writes in the budget message:  “This budget proposal represents a balanced approach to meeting the needs of our students while remaining financially responsible in meeting our long term financial goals outlined in or draft five-year budget deficit reduction plan submitted to the [state  auditor general] and City of Warwick on March 20, 2025. We are committed to transparency and accountability, ensuring that every dollar spent meets the educational needs of our community.”

The ask of the city administration – a total of $147 million – is too much, says Picozzi. It’s an opinion shared by Ed Ladouceur, Ward 5 Councilman and chair of the council finance committee.

“They need to take the hard steps; make drastic cuts in staffing,” Ladouceur said Wednesday.  He added, “But do they have the courage to do it?”

Picozzi is looking forward to council approval of his three budget commission appointees on April 21 and for the commission to start work soon after.

How might this play out?

Based on the commission’s enabling legislation, Galligan says, the budget “is ultimately the budget commission’s decision.”

Asked in a text message on Sunday how he planned to conduct budget hearings that start today at 5 p.m. at Veterans Memorial Middle School, Galligan replied in an email, “We are committed to conducting the upcoming budget hearing in full compliance with the Open Meetings Act, while also recognizing the importance of public interaction and transparency in our budget process.”

In a follow-up, Galligan observed, “Given this new structure, it's important to note that the budget commission now holds the authority to approve the budget and advance it to the city's administration for final consideration. As such, a public Q&A session would be more appropriate at the upcoming budget commission hearings, where the decisions are being made with respect to the School Department funding needs.”

Galligan said he was still reviewing the budget and was not prepared at that time to offer an opinion.

Taking a pass?

Former School Committee member and City Councilman Robert Cushman, who pushed for public release of the school budget once it was forwarded to the School Committee on April 1 [it was posted on the Warwick Public Schools website on Friday] accused Galligan of “taking a pass on the budget.”

“He does not negotiate the teacher contract. Why is he on the School Committee? He might as well resign,” Cushman said.

Asked about the role of the commission, Cushman granted that Galligan is right that he doesn’t have the final say. Yet he observed, the commission doesn’t have the authority to make layoffs and that is up to the School Committee.

After a chance to study the budget, Cushman finds it difficult to make comparisons to prior years. He would also like to see a breakdown of where staff is being cut as well as for the public to have the opportunity to ask questions of school administrators rather than limiting public comment to three minutes per person at the opening of the meeting. During those sessions, administrators don’t interact with the public.

What’s it going to take?

As School Committee member David Testa pointed out in a recent interview, schools can’t look to an increase in either city funding or state aid “to fix the problem.”

From his perspective, trimming costs must come from staff reductions beyond the 20 permissible in the teacher contract. He notes the teacher contract allows for further reductions when there has been a “substantial” decline in student enrollment. He reasons that criterion has been met. School enrollment is 8,000, a decline of 12% from the 2017-18 school year.

“I’ve made it clear we can’t start the school year with the same number of people. We don’t print money,” Testa said.

In addition, he said, “I think the [School Department’s] ask from the city is still too high.”

Assistant Superintendent William McCaffrey, who has been serving as interim superintendent during a leave of absence for personal reasons of Lynn Dambruch, said the budget calls for staff reductions in the administration and non-teachers for a savings of $3.3 million. He did not give a breakdown of staff cuts in each of the areas he identified. Testa said he would ask for a breakdown of those reduced positions. He made it clear he is not looking for names.

Would the administration look to reduce the ranks of teachers beyond 20 on the basis that enrollment has dropped significantly?

“We will be staffing to the needs of the classroom,” McCaffrey said.

McCaffrey says deficit stands at $6.8 million

As for the projected deficit in the current year, McCaffrey put it at $6.8 million and said that could be further reduced by June 30. Schools have yet to close out FY24, which is believed to have a deficit of about $2 million, although Testa has heard it could show a $400,000 surplus because of a postponement of the WISE pension payment.

Under a plan released this spring that relies on annual city increases of 4% and state increases of 2%, McCaffrey projects schools will be out of the red and operating in the black by FY29. To do it, he says, will take all partners in Warwick schools working together.

Picozzi doesn’t see the upcoming budget as a commission budget.

“The School Committee is supposed to do what they normally do … that’s their job,” he said.  He said he expects the committee to work with the commission, but the commission “won’t make it [the budget] for them.”