Thursday, October 22, 2026·Focal News

The Providence Focal

Providence's independent voice

Local

Rhode Island districts cut staff and seek savings as school costs climb

Cranston cut $6.4 million from its fiscal 2027 school budget, including 30 paraprofessional jobs, while districts across the state face higher energy, transportation, health care and special education costs. Some are pursuing energy contracts or solar projects as they grapple with deficits.

Rhode Island districts cut staff and seek savings as school costs climb

Rhode Island school districts are cutting positions and searching for savings as higher operating costs and state funding pressures strain their budgets for fiscal 2027.

Cranston adopted a $192.4 million school budget after cutting $6.4 million, including 30 paraprofessional positions. School Committee Chair Domenic Fusco said the district also cut administrators and made reductions wherever it could. A citywide deficit left the schools with just $1 million in additional funding, while utility bills and state-required expenses added pressure.

The district’s gas and electricity costs are projected to rise nearly 11%, from about $3.05 million in fiscal 2026 to nearly $3.38 million in fiscal 2027, across its 33 public schools. Fusco called this the most difficult budget he has faced in his years on the committee and warned that districts could eventually become financially insolvent.

Other communities are confronting shortfalls of their own. East Providence has a projected $3.8 million school deficit and hired a consultant to identify ways to reduce energy costs. The district is also considering solar installations, including panels on the high school roof and solar carports. Newport made cuts after ending the previous budget year $3 million over budget. Warwick is seeking funding to close an estimated $2.6 million gap, while Pawtucket approved a $152.4 million fiscal 2027 budget after making reductions.

Warwick has approved a fixed-price electricity supply contract starting in November and worked with the city on a three-year natural gas contract. School Committee Chair Shaun Galligan said special education expenses have risen 14% since fiscal 2024. He also pointed to costs tied to state mandates, including transportation for students who attend career and technical programs outside their home district.

State reimbursement does not always cover districts’ full eligible costs. The Rhode Island Department of Education says reimbursements for high-cost special education, career and technical education, and some transportation expenses may be prorated if statewide claims exceed the money appropriated. Because final eligible expenses are not known when budgets are set, districts may not know how much they will receive back until later.

Cranston records show the district spent $206.8 million on special education from fiscal 2021 through fiscal 2024 and received $5.6 million in high-cost special education reimbursements since 2021. Those figures cover different categories and periods, but Fusco said the state is expected to help pay for the costs.

Providence avoided drawing on reserves after receiving $2 million more from the city and $4.7 million more from the state. The state increase followed a change in the poverty multiplier used for students, from 40% to 43%. The district said the added money helped it fill positions in areas of enrollment need, support a high school summer credit-recovery program and restore Chromebooks for students in grades 3, 6 and 9. Providence still laid off 22 teachers and nine administrators.

A legislative commission began reviewing Rhode Island’s education funding formula this month, but its recommendations are not expected for nearly another year. Legislation filed in 2025 that would have let districts opt out of certain unfunded mandates did not advance out of committee. Until changes are made, districts are left to manage rising costs through local cuts, new contracts and other savings efforts.

More from The Providence Focal