Warwick's School Committee is still hunting for money to close an estimated $2.6 million deficit for fiscal 2027, a shortfall that has persisted even after a deficit-reduction plan was supposed to start fixing the district's finances earlier this year. Mayor Frank Picozzi says he believes the gap could have been avoided altogether, pointing to what he calls disarray inside the school department's finance operation.
A Deficit That Keeps Growing
According to NBC 10, the School Committee is still looking for funding to close the estimated $2.6 million deficit. Warwick schools were facing a $9 million deficit, as the Providence Journal reported. The Warwick Public Schools Budget Commission approved a deficit-reduction plan in March 2026 meant to pay down the district's accumulated deficit through fiscal 2031.
That plan projects a cumulative $7.9 million deficit for fiscal 2026 and relies on city-provided payments averaging $1.5 million a year to eliminate it, per Warwick Post's reporting on the committee's deficit plan. But the School Committee never actually voted to approve the plan, and it still needs sign-off from Rhode Island Auditor General David Bergantino. Committee members have also raised concerns that the plan omits $2.1 million they believe should count toward the city's required contribution.
Mayor Points To Finance Department Turmoil
Picozzi has pushed back hard on the idea that the city is shortchanging schools. He said the city had given the school district tens of millions of dollars over the past five years and increased its budget, and that the district hired positions using federal COVID-19 funding without later eliminating them once that money dried up. He also said he did not think the city council would provide an additional appropriation at this time.
The mayor said the district's finance department has been in disarray, citing a string of departures that have left the post without stability. Warwick schools have had six different finance directors in six years, and Picozzi noted that one left before completing four months in the role. That reference lines up with Rita Dias, who, according to Warwick Beacon, left the finance director post after only four months on the job. Craig Enos, another recent finance director, departed after one year of a two-year contract. The School Committee is now searching for yet another new finance director.
Uncashed Checks Totaled More Than $705,000
Compounding the turmoil, the district identified more than $705,000 in uncashed school department checks during year-end reconciliation ahead of the fiscal 2026 audit. Some of those checks dated back to June 2026 and sat in the school department for weeks before reaching city hall. The district issued a check on August 26, and the city of Warwick picked up the deposit on September 18.
Superintendent William McCaffrey said personnel changes and the implementation of a new financial system in July 2026 contributed to the delay, and said the uncashed checks have since been deposited. School Committee Chair Shaun Galligan said committee officials knew the district was in financial trouble as early as spring 2026.
Rising Costs Squeeze An Already Tight Budget
The district's financial pressure comes from several directions at once. Warwick schools face rising costs tied to staffing, utilities, pensions and health care, and the district's special-education costs have increased 14% since fiscal 2024, according to the NBC 10 I-Team's reporting.
Enrollment has also declined. The district lost 175 students during the last school year, with a finance director projecting the loss of 195 more students the following year. The Warwick school budget has grown from about $171.5 million in fiscal 2021 to $203.9 million in the proposed fiscal 2027 budget, an increase of roughly $32.3 million, or 18.9%. The city's contribution over that same span rose from $129,967,938 to $147,550,218, an increase of about $17,582,280, or 13.5%.
Committee Says Its Only Option Is More City Money
Galligan said the district's only option to end fiscal 2027 in the black is additional city funding, warning that without it the district will end the year in deficit. He said current labor agreements and service-provider contracts limit the district's immediate options for cutting spending, and that the district could draw down the deficit in future fiscal years. Galligan also warned that the district could face layoffs and school consolidation if it ran out of money in its bank account.
City Council President Anthony Sinapi said council members would consider allocating more money if circumstances changed, such as a need to add classrooms, and said the council may revisit the budget in May 2027 if the district still needs funding.
How Other Rhode Island Districts Are Coping
Warwick is far from alone. Cranston adopted a $192.4 million budget for fiscal 2027 and cut $6.4 million, including 30 paraprofessional positions, to balance it. East Providence has a projected $3.8 million school district deficit, while Pawtucket's School Department approved a $152,372,081 budget after making its own cuts. Providence managed to climb out of a deficit only after receiving an additional $2 million from the city and $4.7 million from the state.
A legislative commission began meeting this month to review Rhode Island's education funding formula, though recommendations are not expected for nearly another year. State law also authorizes the Rhode Island Department of Education to prorate reimbursements when appropriated funding is insufficient to cover total statewide claims, adding another layer of uncertainty for districts like Warwick that are already stretched thin.
