COVENTRY, RI —The Coventry Town Council unanimously passed a resolution urging the General Assembly to enact legislation authorizing town Coventry Schools deficit oversight.
In a statement about the resolution from the Coventry Town Council, the body said it’s driven by mounting financial concerns and the Town’s responsibility to local taxpayers. The measure seeks to establish legal mechanisms allowing municipal Coventry Schools deficit oversight of school department budgets when deficit spending exceeds sustainable levels.
Coventry Schools $5.8M Deficit drives Municipal Oversight Effort
The resolution comes on the heels of the Coventry Public Schools’ persistent budgetary challenges, with the latest financial audit revealing a $5.8 million school department deficit.
“As the Town Council continues to fulfill its obligations to support education funding—including maintenance of effort (MOE) contributions, capital school project debt service, and pension funding—it is calling for reforms that will prevent unchecked deficit spending that ultimately burdens local taxpayers,” according to the Council’s statement.
“Coventry’s taxpayers deserve transparency and accountability in how public funds are managed,” said Council President Hillary Lima. “This resolution is a necessary step toward providing needed checks and balances in the dynamics of municipalities and school districts, ensuring fiscal responsibility in our schools while protecting taxpayers from financial mismanagement.”
The resolution proposes that when a school department deficit exceeds 4 percent of its total budget, city or town councils should have the authority to assume financial oversight of the department’s day-to-day budget operations. This would continue until a mutually approved deficit reduction plan—reviewed by the Auditor General—is in place and effectively implemented.
“We have worked in good faith to provide Coventry schools with the financial resources they need while maintaining a balanced municipal budget,” said Council Vice President John-Paul Verducci. “However, the current system allows school departments to operate without adequate accountability, and when they overspend, local taxpayers foot the bill. This resolution calls for a common-sense reform that will prevent future fiscal crises.”
The resolution directs the Town Clerk to transmit certified copies of the resolution to key state leaders, including the Governor, Speaker of the House, Senate President, Coventry’s legislative delegation, and municipal leaders across Rhode Island. Coventry’s Town Council hopes to build statewide support for this initiative to ensure sustainable financial planning for local schools and municipalities alike.
The Council began its first year with two new at-large members last month with a statement urging the Coventry School Committee to gain better control of its finances.
The jump in the Coventry Schools deficit comes from the the FY23 audit, now wrapping up, and the start of the FY24 closing process, which included consolidating prior fund deficits and correcting the recording of Retiree Benefit Fund expense transactions in the Keystone accounting system, according to a press release Tuesday night. Town Council - 25 Feb 2025 - Full Agenda (1)
Author: Rob Borkowski
Rob has worked as reporter and editor for several publications, including The Kent County Daily Times and Coventry Courier, before working for Gatehouse in MA then moving home with Patch Media. Now he's publisher and editor of WarwickPost.com. Contact him at editor@warwickpost.com with tips, press releases, advertising inquiries, and concerns.
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