The Johnston School Department is facing a mounting budget deficit, now approaching $2 million, a situation that has raised concerns among local officials and residents.
In recent interviews, Rhode Island Auditor General David Bergantino, Johnston Mayor Joseph Polisena Jr. and Johnston Schools Superintendent Bernard DiLullo provided their perspectives on the district’s financial challenges and efforts to address them.
A History of Deficits and Oversight
Since Bergantino took office two years ago, his priorities have included increasing transparency in municipal financial reporting. His office’s role, as he explained, is to provide oversight and ensure municipalities stay on top of their financial health. If a town or School Department faces deficits, triggers are set in place for corrective action plans to avoid long-term financial struggles.
“These triggers were designed years ago to prevent municipalities from falling into serious financial trouble,” Bergantino said. “The goal is to catch issues early and address them before they become bigger problems.”
The Johnston School Department’s deficit began to take shape in 2019, when the district’s operating expenses began to outpace revenues. By 2020, the department was facing a cumulative deficit that has grown steadily each year, reaching nearly $1.6 million by the end of 2023. Projections for 2024 suggest an additional deficit of $400,000 to $500,000, potentially pushing the total over $2 million.
Despite the challenges, Bergantino commended the School Department for its cooperation. “We meet regularly, and the School Department is working in good faith to find a solution,” he said.
Mayor Highlights Fiscal Responsibility
Johnston Mayor Joseph Polisena Jr. stressed the importance of fiscal responsibility in addressing the deficit.
“Under no circumstances, whether in government or the private sector, should you use saved money towards recurring expenses in perpetuity,” the mayor stated. “It’s the same reason I would never use that fund balance to hire people. What happens when the savings is depleted, but I still have to pay those new salaries?”
The mayor highlighted the significant increase in school funding over the past two years, noting that Johnston has provided one of the highest funding percentage increases in the state during that time. Despite this, the School Department continues to run annual deficits.
“I can’t explain it,” the mayor said. “I will continue to fund them as best I can, but I also need to see a corrective action plan to get them to financial solvency.”
The town had proposed an additional $300,000 annually for the next five years to the School Department, but the mayor expressed frustration that the department couldn’t make that work.
“I’m at a loss,” he said. “Some municipalities go years without increasing funding to the School Department, particularly ones with enrollment declines like Johnston.”
Superintendent Details School Department Challenges
Bernard DiLullo, superintendent of Johnston Schools, acknowledged the financial challenges and outlined the steps being taken to address them. He cited rising medical costs, growing populations of students with special needs and multilingual learners, and state mandates for high-quality curriculum materials as major factors contributing to the deficit.
“Since [Business Manager] Dean Huff joined our team last spring, we have been focused on planning for the reduction in our deficit,” DiLullo explained. “We have worked with our two unions to reduce medical costs, but unfortunately, we now have to give more of the responsibility to our employees, some of whom are not earning enough income already.”
DiLullo also pointed to long-term savings anticipated from the consolidation of elementary schools and plans for an expanded high school with career and technical programs.
“With the anticipation of the new elementary school, we will see significant cost savings as we anticipate fewer facility problems, efficient transportation, and staffing,” he said.
Despite these efforts, DiLullo noted the growing challenges of meeting the needs of specialized student populations. “Each year we lay off teachers and reorganize departments in an effort to reduce budget expenditures. Most of our classrooms are at contractual capacity or above, causing the district to pay overages,” he explained, adding that students with special needs and multi-language learners require additional resources mandated by state and federal laws.
The superintendent also highlighted the financial strain caused by unfunded mandates.
“The state has mandated that districts acquire approved high-quality curriculum materials. In the past, our assistant superintendent has covered these costs with grant funds, but those funds are no longer available,” he said. “Those costs are in the $70,000 to $80,000 range for each subject area.”
A Collaborative Path Forward
DiLullo expressed optimism about the collaboration between the School Department and town officials.
“The town and the School Department participate in monthly meetings with the Auditor General to solve the deficit issue,” he said. “I have confidence that we will come to a solid plan that reduces our deficit and puts the School Department operating with a realistic annual budget.”
Looking ahead, the superintendent emphasized the importance of community involvement in the budget planning process for fiscal year 2026.
“That process includes meeting with all school and department leaders to propose a budget. Then that budget is presented in workshops led by the school committee and invites public participation,” he said.
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