Development News for East Greenwich, Rhode Island

Town Council Debates FY2027 Budget, Balancing Levy Increases with Service and Investment Needs

The Town Council held a special meeting on June 1st, 2026, to continue discussions on the proposed operating budget for fiscal year 2027. The primary focus was on balancing the budget amidst increased inflation (3.8%), rising healthcare costs, contractual labor increases, and significant investments in school infrastructure, which together necessitated a proposed levy increase of 6.88%. The council debated various scenarios, including budget reductions, adjustments to residential and commercial tax rates, and potential revenue enhancements like charging fees at the transfer station. Ultimately, the council aimed to finalize the budget by June 10th, seeking a consensus on the levy amount and rate distribution between residential and commercial properties while trying to avoid service cuts. Option A was presented, proposing a $255,000 reduction in the tax levy, which could lead to a 6.36% increase in the residential rate and a 5.63% increase in the commercial rate. There was considerable discussion regarding the impact on small businesses and the historical balance between residential and commercial tax burdens.