Projo 7 to 7 News Blog

SMITHFIELD, R.I. -- A misunderstanding means that the School Department can count on more than $200,000 in Medicaid reimbursements it thought would never make it to the proper account.

At the request of the School Committee, the Town Council Tuesday night cleared up that the reimbursement, as well as any federal money earmarked for education, would be forwarded directly to the School Department with no delays.

Town Solicitor Edmund L. Alves, Jr., said that all of the money is earmarked for the School Department, so there was never any question on the town end that the money wouldn't make it to the appropriate accounts.

"I think we're on the same page," Alves said during the meeting.

The School Committee originally asked the town to reopen a budget hearing where it would seek to reinstate $200,000 in Medicaid reimbursements that had previously been cut in order to help the town come in line with the 4.75-percent tax levy cap. However, officials said that reopening the budget hearing would have forced the financial town meeting -- slated for Thursday -- to be postponed.

The School Department pays some medical expenses for special-needs students, such as occupational therapists, that can be reimbursed through the federal Medicaid program. The reimbursement has no effect on the tax levy because the money comes from the federal government.

Under updated projections, School Committee Chairman Richard B. Iannitelli said the School Department expects to receive $267,000 in reimbursements for the coming fiscal year. The department wanted the clarification so it wouldn't budget for money that it wouldn't have, Iannitelli said.

"Budgeting starts July 1," Iannitelli told the committee. "We just gotta know solidly that we're not going to come to June 30 next year and find out we have a problem."

The schools had requested a $27.4-million local appropriation to support a $32.9-million budget. Instead, voters at the financial town meeting on June 11 will be asked to approve a $26.9-million appropriation. As it stands, the request for the schools exceeds their current operating budget by $800,000.

 Tags  economy education Smithfield RI Smithfield school budget Smithfield Town Council

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