Warwick Mayor Picozzi calls for school district finance commission

Picozzi said the size of the deficit comes as a surprise and if it’s not promptly addressed, it could lead to big tax increases and bond ratings that would raise borrowing costs for two new high schools .
Picozzi, an independent just re-elected to a four-year term , is proposing a five-member Warwick Public Schools Budget Commission, saying he’d appoint three of the members, with City Council approval, while the Warwick schools superintendent would name one member and the Warwick School Committee chairman would name the other member.
WARWICK, R.I. — Warwick Mayor Frank J. Picozzi is pushing to create a commission to oversee school finances in response to a $9 million deficit recently revealed by Warwick school officials.
“I don’t have confidence they can solve it,” he said of school officials. “They created the problem, apparently without even knowing they created it.”
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The Warwick City Council is scheduled to vote on Wednesday evening on a resolution calling for the General Assembly to pass state legislation creating the budget commission.
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But Warwick School Committee Chairman Shaun Galligan on Wednesday said the committee opposes the budget commission idea. He said the proposal is unnecessary and could disrupt efforts to resolve the district’s financial challenges.
“The school committee and the superintendent have already taken significant steps to address these concerns,” Galligan said. “We have contracted independent consultants with extensive municipal finance experience, frozen discretionary spending, and implemented substantial line-item reductions.”
Also, he said, school officials are developing a five-year fiscal plan, which will be presented publicly by Feb. 28.
Galligan said the school committee is concerned about the potential impact on “the governance and autonomy” of Warwick public schools.
“A separate budget commission could undermine the collaborative and transparent processes we have in place,” he said. “If additional oversight is deemed necessary, we encourage the use of existing state law governing budget commissions, which provides a proven and consistent framework for addressing fiscal challenges.”
Picozzi said the proposed budget commission is modeled after similar commissions created in Woonsocket and East Providence during the administration of former Governor Donald L. Carcieri, a Republican who served from 2003 to 2011.
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Picozzi said school officials have outlined some potential cuts, but he said they don’t appear sufficient to close the $9 million budget gap. And he said some of the ideas amount to “kicking the can down road” by, for example, pushing off pension payments or not filling a vacant assistant principal position.
Picozzi said he has spoken to House Speaker K. Joseph Shekarchi, a Warwick Democrat, about the proposed state legislation. He said the teachers union is already lobbying against the legislation, but he noted the proposal would not allow the budget commission to change or negotiate contracts.
Under the proposal, the Warwick Public Schools would have the power to:
“Amend, formulate, and execute the annual school budget.”
“Implement and maintain uniform budget guidelines and procedures for the school system.”
“Amortize operational deficits in an amount as the city finance director approves and for a term not longer than five years.”
“Compel operational, financial performance, or forensic audits.”
Within 120 days, the commission would develop a three-year operating and capital financial plan for the district that would include “recommendations to immediately begin to address the operating and structural deficits.”
But the commission would not have the power to:
“Reject or alter any existing collective bargaining agreement.”
“Hire or terminate school department personnel.”
“Affect bond-funded projects or decisions,” including “the proposed construction of two new high schools.”
In 2022, Warwick voters approved borrowing $350 million to build two new high schools. But in October, Galligan said the costs of materials and labor had “gone through the roof,” making it impossible to replace Toll Gate and Pilgrim high schools for that amount without further scaling back the projects.
Robert Cushman, a former Warwick School Committee and City Council member who runs a Facebook group called “The Taxpayers’ Spin‚” said the $9 million school budget deficit is a major problem that could lead to tax increases in future years.
“The seniors are going to be devastated by the tax increases to come. Many people are probably going to lose their homes,” he said. “What’s happening statewide — and Warwick did the same thing — is the federal funding is running out, but the positions remain embedded in the operating budget.