Development News for Newport, Rhode Island

Newport City Council Approves Funding to Address School District Deficits

The Newport City Council approved resolutions to address the Newport Public Schools' projected fiscal year 2026 operating deficit of $2.8 million and future funding needs for fiscal years 2027-2028. For fiscal year 2026, the city will appropriate $1.503 million from its surplus and provide a $700,000 interest-free loan to the schools, which will also apply its remaining fund balance of approximately $596,031 to mitigate the deficit. For fiscal year 2027, the city may provide up to $1.191 million as a loan from its unassigned fund balance, to be reimbursed by future housing aid revenues, and establish a $1.5 million restricted reserve fund for special education overruns. The council also amended the fiscal year 2027 resolution to include conditions requiring certification from the school committee and superintendent regarding the reinstatement of laid-off teachers and the maintenance of instructional continuity, as well as a financial oversight and reporting structure where the school finance director reports to the city's finance director on matters involving city appropriations. These appropriations are conditional on not being computed in the maintenance of effort requirements and require approval from the Commissioner of Education.