School Budget Remains Unbalanced Despite Surplus

Despite a projected surplus for the 2013 Newport school budget and lower student enrollment estimates, the 2014 budget remains short, according to school staff.

At Tuesday's School Committee meeting, Superintendent John Ambrogi pleaded with members to use $776,932 from the Other Post-Employment Benefits (OPEB) Trust to balance budget. Committee members failed to approve the motion with a split vote; Robert Power, Thomas Phelan and Robert Leary were opposed and Rebecca Bolan was absent.

Ambrogi said he needed to “have a balanced budget today,” because the school had a 30 days to report a budget after Newport City Council approved the city's budget on June 26, which included a $22,564,158 appropriation to the schools.

“I’m not a fan of doing this,” explained Ambrogi. “I’m not going to be here for the last six months of the year. I’m just giving you an option. I need to have a balanced budget today.” 

After the meeting Councilor Michael Farley pointed out the July 30 meeting was scheduled four days after that 30 day deadline. 

“Making matters worse, at that meeting, the school committee did not amend and adopt a budget,” Farley wrote in an email to Committee Chair Charles Shoemaker. "A decision was made to proceed with an unbalanced budget, which under 16-2-21(c) means that you have no budget at all,” said Farley. 

Committee member Thomas Phelan said taking money out of the OPEB Trust was a “ridiculous” idea and would create a “structural deficit.”  “It’s not an emergency,” said Phelan.  “It’s just poor planning.  It’s borrowing from the future.”

Without a balanced budget, Ambrogi said they will enter into a process defined by Caruolo Act, which ultimately could allow the School Committee to file suit in order to seek more money from the city.  

In June, Newport School Business Manager Joan Tracey announced they had a 2013 budget deficit of $89,000. At Tuesday's meeting, Tracey explained after review, she estimates a surplus of $452,741. With the surplus and without the OPEB withdrawal, that leaves the unbalanced 2014 budget around, one-percent, or $392,000, lower, than the 2013 budget. 

Ambrogi also factored in a reduction of three teaching positions into the budget, as a result of lower projected enrollment numbers for elementary and kindergarten students.

Leary asked if they could review the line items of the budget to find $776,932 of savings, but Ambrogi said it would be impossible to amend the budget because Tracey was going on vacation the following day.

The budget did not reflect savings from the Pell School construction, despite that Abrogi re-stated the commitment in an email exchange to Newport City Manager Jane Howington last May.

Under the Carulo Act, the next step is to petition the commissioner to seek alternatives for the district, such as requirement waivers.