Committee: $2M Schools FY26 Deficit Illegal

WARWICK, RI — The Warwick School Committee has formally asked Mayor Frank Picozzi, the Council and Budget Commission how to resolve Warwick Schools’ Schools FY26 Deficit and illegal operation without a certified, balanced budget.

“Warwick Public Schools is violating state law by operating without a certified, balanced budget—a situation that must be resolved,” the Committee stated in a release to media following an executive session meeting this morning at the Gorton Administrative Building.

Schools FY26 Deficit Statements From Officials Leave no ‘Lawful Path’

The statement references the Warwick Schools Budget Commission statements at its Sept. 22 meeting – repeated during its presentation during the Sept. 29 City Council meeting, that all district expenses were valid and legitimate, and determined that an additional $2.1 million in local appropriations is required to achieve a balanced FY26 budget.

“However, subsequent statements from the Commission’s Chair Ernest Almonte suggested that this appropriation might not be provided as it would drive up the annual “maintenance of effort.” This devastating budget gap leaves the district without a lawful path to balance its budget,” the Committee said in its statement.

The statement adds that because the School Committee no longer holds budgetary authority under the state legislation that established the Budget Commission, it cannot independently resolve this shortfall. Simultaneously, the Committee is required by law to operate with a balanced budget and therefore seeks clear direction from the City and Commission to ensure compliance.

“The attached correspondence seeks clear and timely direction from the City and the Budget Commission so that Warwick Public Schools can continue to meet its legal and educational responsibilities,” the School Committee said in its release.

Mayor’s Office: City Will Fund FY26 ‘In its entirety’

“The city will fund in its entirety the FY 2026 budget that was recommended last month by the Warwick Budget Commission,” Picozzi said in a statement about the Committee’s public request for guidance.

“We are looking at two different options to fund it at this point. One would be for the city to make an additional appropriation which would require City Council action and the money would come out of the city’s fund balance. We have to be cautious with this option because reducing our fund balance in addition to the School Department’s budget deficits over the last four years could put our bond rating in jeopardy at a time when we’re about to borrow hundreds of millions of dollars to build new schools.”

“Another option would be to just fund the budget without making an additional appropriation and folding the shortfall into the School Department’s 2025 deficit of over five million dollars then amortize it over a five year reduction plan. I have met with the Auditor General and he feels that this is a viable option.

“The School Department has been made aware of all of this weeks ago,” Picozzi said.

Shaun Galligan, Chair of the Warwick School Committee, disagreed. “We have nothing in writing from the Mayor, and it has not been presented to the Council. Furthermore, the Superintendent and I have received conflicting means of resolution to this matter from the Mayor,” Galligan said.

“The School Committee has worked in good faith throughout this process and remains committed to fiscal responsibility, transparency, and doing what’s right for our students and families,” said Galligan, “Every feasible reduction has already been made, and our focus now is ensuring our district can continue providing quality education within the bounds of the law.”

Galligan has posted a video timeline of the Warwick Schools Budget crisis to his campaign page, starting with the disclosure of a $9 million deficit and ending with the current status of the budget.

Committee’s formal asks on $2M Schools FY26 Deficit

The statement concludes, “The Warwick School Committee remains focused on its commitment to accountability and responsible spending of public resources that support its students and school community. The Committee has already taken significant measures to reduce costs while preserving educational quality, as detailed in the letter sent to city leaders today.”

The letter asks:

1. Wil the Mayor and City Council appropriate the $2.1 million necessary to balance
   the FY26 Warwick Public Schools budget? OR
2. Will the Mayor and City Council direct the School Budget Commission to initiate a
   Caruolo action in Rhode Island Superior Court to obtain the funds required by law?

According to the letter, the “Rhode Island Department of Education is seeking confirmation of an approved, balanced budget. If that cannot be certified, the law requires the filing of a Caruolo action-and, again, that filing authority rests with the Commission under the current framework.”

A request for comment from Budget Commission Chairman Ernest Almonte was not immediately returned. The Committee’s letter has been attached below. WPS Letter to Mayor, Council and Budget Commission re Budget Shortfall v1 10.03.25