East Providence’s school district projected a $1.3 million deficit for fiscal 2026, with transportation, out-of-district special education placements and utilities among the costs running above budget. The projection emerged as new Superintendent Robert Perry took office and amid vacancies in the district’s finance office.
A New Superintendent Walks Into a Budget Crisis
At the School Committee’s August 11 meeting, officials projected transportation costs would exceed budget by $918,000, out-of-district special education placements by $1.1 million and utilities by $325,000, according to eastbayri.com. Superintendent Robert Perry, who started July 1, took office as the district was confronting those projected overruns.
The figures come with limits on how quickly the district can adjust spending. Salaries and benefits account for as much as 83% of the budget, while other fixed costs, including insurance and utilities, have been rising 10% to 12%, eastbayri.com reported. Transportation, special-education placements and utility costs are therefore significant pressures, but the reported figures do not by themselves indicate what savings could be made.
Finance Office Left Thin During the Crunch
The district’s finance office also faced staffing gaps. Finance Director Alexandra Gonzalez resigned June 26, after the district had gone months without a controller; the staff accountant resigned in July, effective August 4, according to eastbayri.com. The report also said the district brought in an interim finance director and outside consultants to address the deficit.
The city had not completed its audit for FY25, which ended October 31, 2025; the audit was due six months later, on May 1, the same report said. The district imposed a spending freeze while it worked out a response to the projected deficit, according to the report.
Separately, a Mayoral Tax Levy Proposal
The fiscal squeeze isn’t confined to the school side of the ledger. At a city council budget session, Mayor Roberto DaSilva proposed a 3.5% increase in the tax levy, according to Uprise RI. The details and final disposition of that levy proposal were not independently confirmed beyond that account.
Bigger Cost Pressures Loom Over Next Year’s Budget
The FY26 deficit is unfolding against a backdrop of structural cost growth that has been building for years. East Providence’s municipal contributions to its fire and police pension fund have risen from $7.02 million in FY2018 to a projected $13.1 million in the upcoming budget year, an 86.6% increase, eastbayri.com reported in earlier coverage. The city also anticipates a 7.64% increase in health insurance costs and a 6.36% increase in dental costs for municipal employees, per that reporting, while debt service for bond-funded projects could climb by as much as $3.9 million next year…