SC Asks Mayor for $2.1M FY26 Deficit Decision

WARWICK, RI — School Committee Chair Shaun Galligan says the Mayor’s office and Budget Commission have yet to offer a plan on how they’ll plug the schools’ $2.1 million FY26 deficit as they send the under-funded budget to the state.

Monday  morning, Galligan distributed a release announcing its compliance with the Rhode Island Department of Education’s demand for the budget as-is, deficit included, and repeated the Warwick School Department’s request for a plan, in writing, to address the shortfall. He also sent a letter to Mayor Frank Picozzi and the Budget Commission asking for their plan in writing.

Schools FY26 Deficit Fix Options

On Oct. 8, Picozzi’s office reported they were deciding between two possible solutions to resolve the schools’ $2.1 million FY26 deficit:

1.  Appropriate the $2.1 million from the city’s fund balance
2. Fold the deficit into the School Department’s 2025 deficit (currently more than $5 million) to be amortized over a five year reduction plan.

Picozzi’s office stated it had apprised the school department of the options being considered, but Galligan said they had nothing in writing and that it had also not been presented to the council. A request to the Mayor’s office for an update on which of the two options was more likely, and when the school department would receive notice in writing, were not immediately returned.

According to Galligan’s letter to Picozzi and the Budget Commission, RIDE issued the Warwick School Department a declaratory order, DO 25-01A, providing binding direction under R.I. Gen. Laws §16-2-9.4(d) requiring Warwick Public Schools to submit its “budget-only” file to RIDE, even if the budget remains unbalanced.

“The Commissioner’s ruling further affirms that any subsequent fiscal or legal action rests with the School Budget Commission and the City of Warwick, which possess the statutory authority to amend, appropriate, or seek judicial relief. Accordingly, the Warwick School Department complied immediately with RIDE’s directive and submitted the district’s FY 2026 budget file to the Department of Education. However, it is now incumbent upon the Mayor, and Budget Commission to determine how the identified $2.1 million shortfall will be lawfully addressed,” according to the letter.

“We therefore request that you provide a written response within five (5) business days, indicating one of the following:
1. Whether the Mayor intends ot appropriate the $2.1 million necessary ot balance the FY 2026 budget; or
.2 Whether the Budget Commission wil initiate a Caruolo action in Rhode Island Superior Court ot obtain the funds required by law.
Absent such written direction, the School Committee will refer this matter to the Rhode Island Department of Education and the Office of the Auditor General for further review and enforcement.”

Funding disputes between school committees and city or town councils are resolved through a process spelled out in the Caruolo Act, enacted by the Rhode Island General Assembly in 1995, according to a RIPEC docment. If a school budget is not large enough to meet federal and state requirements, school committees may petition the Rhode Island Department of Education (RIDE) to relax or otherwise alter those requirements. If not approved, the committee may seek additional appropriations, first by petitioning the city or town council and then through legal action in the Rhode Island superior court.

“The time for ambiguity has passed. The students, families, and taxpayers of Warwick deserve clarity, accountability, and a balanced budget that meets al state mandates,” Galligan wrote, “The next move is up to the Mayor’s School Budget Commission and the Mayor. Families, students, and taxpayers deserve to know — in  writing — how their leaders intend to meet this obligation.” Letter regarding RIDE Declaratory Order - October 27 2025 Warwick Public Schools Press Release - October 27 2025