Smithfield schools seek 4% increase as district warns of $882,000 operating shortfall

Interim Superintendent Lisa told the Smithfield Budget and Financial Review Board on April 7 that the district is asking the town for a 4% operating increase for FY27 and a $1.3 million capital package tied to textbook, lab and equipment needs. She said the district reduced its initial request to the 4% figure after trimming staffing and discretionary items but still faces a remaining operating shortfall if the town’s current proposal of $500,000 holds.

"When all was said and done, my original budget request to the school committee was at a 5.12% increase," Lisa said. "We worked it down to 4%, and in doing so we cut positions and removed items like in‑school suspension and two elementary math interventionists." She named several staff who are part of the budget team, including interim finance director John Ward and assistant superintendent Wendy Emla.

Why it matters: the district said benefits and transportation increases widened the fiscal gap even after staffing reductions. New trust projections raised the working medical rate to 11.12% and dental to 9.34%, increasing benefits costs by about $235,936. Transportation vendors proposed double‑digit contract increases, prompting the district to plan an RFP and to explore shared bus runs with neighboring Lincoln as a potential savings path.

What the budget would fund and cut: Lisa outlined curricular purchases the state now requires (science materials by fall 2026, world language and civics for secondary graduation) and said the district plans one‑time capital purchases — notably Smithsonian science kits estimated at roughly $160,000 — while moving some large initial curriculum costs into capital rather than operating budgets. To reach the 4% ask, the district proposed cutting several positions (one unfilled middle‑school position, two high‑school teacher positions tied to enrollment declines, and the STEM coordinator) and removing discretionary items including a proposed volleyball startup. Lisa said the district is at a staffing minimum.

Capital and facilities: the FY27 capital request the school committee approved and sent to the town included $800,000 for capital (technology, textbooks and stage‑two projects) with a larger $1.3 million target tied to Stage‑2 expenditures to preserve state reimbursement eligibility. Lisa emphasized that failure to meet planned capital spending could jeopardize Stage‑2 reimbursements from the Rhode Island Department of Education (RIDE).

Facilities needs also include an elevator repair at Gallagher Middle School (staff estimated roughly $125,000 to restore operation but said that would not fully meet ADA retrofit requirements) and laboratory renovations at the high school. The district said RIDE reimbursement for eligible Stage‑2 capital is roughly 35% depending on the district’s low‑income ranking and project timing.

Fund balance and unresolved gap: the district reported an audited fund balance of $2,381,000 (June 30, 2025) with unassigned surplus near $1.9M and warned against relying on reserves to close recurring operating deficits. Lisa said that if the town’s current proposal stands — $500,000 local appropriation versus the district’s $1.382M ask — the district would face about an $882,000 shortfall in the operating budget and would have to consider further staffing and program cuts or tapping reserves.

Board requests and follow‑ups: board members requested multi‑year trend data on special‑education placements, contracted services and substitute costs. Staff said some per‑school counts (for occupational‑therapy hours, for example) are included in the answer packet and pledged to provide additional trend material consistent with student privacy rules. The district also said it will proceed with an RFP for transportation and further examine seat registration to reduce empty bus capacity.

What’s next: the school committee submitted the 4% operating request and capital proposals to the town; the town council and town manager will reconcile the town budget proposal and local appropriation. District staff said they would provide the requested trend data and updated cost figures as they finalize numbers for the town’s budget review.