Smithfield board splits on school capital drawdown and operating increase

The Smithfield Budget & Financial Review Board spent a lengthy portion of the May 12 meeting wrestling with the school department’s operating and capital requests, including a proposed $1.3 million capital program tied to high‑school renovations and technology purchases.

Chair noted the town manager’s recommendation had proposed drawing down the school reserve by roughly $1,085,040, while the board’s working recommendation for school operating was about a 3.97% increase over prior appropriation. A staff figure presented during the meeting showed the school reserve at roughly $2,381,500 as of April 30, 2026; members asked for detailed breakdowns of what restricted reimbursement funds (including state “housing aid” or similar reimbursements) would net back to the capital account.

Several board members emphasized the town’s long history of limiting school operating increases and cautioned against repeated deep drawdowns of school reserves. Others argued that underfunding schools risks enrollment declines and longer‑term harm to the town’s attractiveness. Chair said certain purchases (Chromebooks, curricular items) could be reclassified to capital to avoid recurring operating pressure.

Because of uncertainty about restricted school capital balances and reimbursement timing, the board agreed to separate final action on the school capital reserve and asked staff to provide a reconciled accounting of school restricted funds, state reimbursements and the specific capital items eligible for reimbursement before the council submission.

What’s next: the board approved other departmental totals and will revisit the school capital question after staff provides the requested accounting. The board also approved the aggregate expenditure/revenue total to transmit to the town council but flagged the school capital as contingent on further reconciliation.