Council receives school committee notice of projected FY27 deficit; members debate budgeting and call for joint audit

The Newport City Council formally received a communication from Superintendent Colleen Burns Germaine notifying the city of a projected fiscal 2027 budget deficit for Newport Public Schools, prompting an extended discussion about budgeting practices, special-education costs and oversight.

School committee members present said the committee approved an FY27 budget on a 4–3 vote to comply with state law’s July 1 deadline. A school committee member identified as Becky told councilors they passed the budget because the law requires a budget in place by that date; she and other school representatives said the committee had been under pressure and that the vote reflected a desire to fulfill the statutory deadline while they pursue additional adjustments.

Councilors expressed frustration with the narrow 4–3 vote and the timing, arguing the vote masked structural shortfalls. Council members pointed to out-of-district special-education placements—school staff said there were 39 such students and that related costs could total roughly $2.8 million for those placements—as a significant driver of the projected deficit. Several councilors urged deeper collaboration between the council and the school committee and recommended an audit and cross-body discussions to identify solutions.

In related business, the council amended and approved a resolution directing an independent personnel audit by a qualified firm to evaluate organizational structure, staffing, reporting relationships, operational efficiencies and management practices. The resolution also requires the audit to include a process and feasibility plan for realigning the school department finance office as part of the city’s finance department if appropriate. Councilors and school committee members discussed coordinating the city audit with a school-commissioned audit to avoid duplication.

Councilors and school representatives said they are willing to work together on options including one-time fixes, operational audits, staffing reviews and more detailed financial analysis. The council’s vote to receive the communication is procedural; the audit resolution starts a process to issue an RFP and consider independent firms and costs.

Next steps: the council will invite additional school finance staff and the superintendent to coordinate follow-up meetings and to scope the audit and any shared RFP process.