Unaudited Report Shows $2.3 Million Combined City, School Surplus

A $2.3 million surplus in the Budget Commission's preliminary City budget report is attributed largely to one-time savings on unfilled or late-filled positions at the Woonsocket School Department.

An audit of the results by CohnResnick LLP of New London, CT, is in progress, according to City Finance Director Thomas Bruce.

Officials and the report itself list the vacancies among the reasons for the surplus. "Vacancies at the School Department during FY2013 resulted in an unanticipated salary savings of $1.3 million," the report reads. Those positions included the business director, building principals, teachers, curriculum director, technology positions and the deputy superintendent position.

Due to the transition to Budget Commission control over finances, said Council President John Ward, also a member of the Budget Commission, hiring for those positions were either delayed or unfilled. Superintendent Giovanna Donoyan also commented to that effect in a recent Woonsocket Call article.

"That was a significant savings," said Bruce, in staffing, benefits and health insurance. According to the report, medical benefits for active and retired school employees was $1.8 million less than budgeted. The report also notes the Woonsocket School Department spent $62.65 million of its budgeted $66.6 million, dipping only $638,497 into a $4.5 million "Education Reserve for Deficit Reduction".

But, said Ward, ultimately, with hiring on many of the positions in effect, "That, I think, will turn into a one-time surplus." Bruce confirmed the conditions will not repeat going forward.

Without the staffing delays, Ward said, "We would've had a deficit for this year." But the one-time surplus is still good for the city long-term, Ward said, since the unexpected surplus will aid the City's fiscal struggle, and likely diminish taxpayers' future bills. "It allows for the Commission to re-evaluate the 5-year-plan to account for that," Ward said.