Funding in flux (Nov. 28, 2008)

By Emma Bouthillette 

Staff Writer

Gov. John Baldacci recently announced a curtailment to the current state education budget, meaning Maine School Administrative District 71 has to tighten spending in this year’s budget. 

In a letter addressed to the legislature Nov. 19 ordering a proposed budget curtailment Baldacci said, “In light of Maine Constitution’s requirement for a balanced budget in each fiscal year, this presents a serious situation that must be addressed.”

“There is bad news on all fronts,” said Department of Education Director of Communications David Connerty-Marin, including a $27 million reduction in state education subsidies during the current budget. 

According to Maine Department of Education numbers released Nov. 21, MSAD 71 is facing a reduction of $537,522 in state aid while Arundel has a projected loss of $95,640. 

MSAD 71 Board of Directors Chairman Maureen King said she is “stunned” by the amount the state is cutting from subsidies, and said she expects the issue to be on the agenda for the board’s Dec. 1 meeting. 

“We have to look at ways to start saving, and the department is already looking at ways to prioritize spending,” King said. 

“We are actively reviewing what to do in the short term and in the long term to have the least amount of impact,” MSAD 71 Business Administrator Jim Barnes said.

The school district has already asked teachers and staff to order essential items only and orders will be reviewed by the administration prior to being placed, he said. The curtailment will cause the district to eliminate non-labor expenses from field trips and conferences, as well as consolidate bus routes, Barnes said.

Meanwhile, the district plans to form a transition team as the new Regional School Unit forms during the coming months. Barnes said the existing school boards are beginning to plan next year’s budget, and King said she anticipates a lot of overlap of current board members to the new board, making the transition easier. 

Planning for Next Year

With impending budget and funding cuts at the state level, Town Manager Barry Tibbetts gathered the town’s budget board, MSAD 71 board of directors and staff of Kennebunk Free Library Nov. 19 for a special meeting in anticipation of a tough upcoming budget season and potential deep budget cutbacks for the second half of this fiscal year. The meeting occurred before the state’s current year allocation cuts were announced.

Tibbetts presented an overview of the Maine Economic Forecast, citing a potential increase in the unemployment rate — possibly rising to 7.5 percent by the end of the budget cycle — leading to job loses between 7,000 and 17,000, impacting the state for “at least two more quarters.”

“Maine reacts slower and takes longer to recover,” Tibbetts said. “There are so many variables that the number could change, but Maine will definitely have job losses, and we’re in for a change in the next 12 to 18 months.”

Revenues from income and sales taxes are not anticipated to increase and may further cut into education and revenue sharing at the state level, Tibbetts said. 

While he said town officials anticipate federal aid in the form of various stimulus packages, they also anticipate a budget with zero percent growth in revenue. With no financial growth and a zero percent increase for next year’s budget, the town will have to cut at least $450,000 or the equivalent to nine full time positions.

“We need to take the time now to look at where we want to be at come budget time. What do we have to do moving forward to maintain the quality of life and minimize the impact on taxpayers,” Tibbetts said. 

Kennebunk Selectman Al Searles questioned if some of the school budget cuts could come from the amount budgeted over essential programs and services, but King said the district needs to find a way to keep as much as possible. 

“If we do not have athletics, art, drama and music, we are short changing the students,” King said. “Without those other things, some kids will drop out of school and the district will be hemorrhaging more students.”

After the meeting, King said the Essential Programs and Services budget was constructed as a minimal guideline, but has now become a maximum the state will fund.

“Things like foreign language, physical education, music art and even transportation are not fully funded by the Essential Programs and Services. These are things that are over Essential Programs and Services that should be in that funding,” King said. 

During economic down times, residents turn to local libraries, but even Kennebunk Free Library is struggling when it comes to planning a budget. 

To keep the library open 51 hours a week and provide the same services without an increase in budget Kennebunk Free Library Director Stephanie Limmer said they would be running the library on a skeleton staff. With many non-profit organizations in the area, Limmer said the library is competing with fundraisers, but has been successful in raising money as well as revenue from late fees. 

Selectmen asked members of the town’s budget board, MSAD 71 Board of Directors and Kennebunk Free Library staff to meet separately to discuss budget strategies and scheduled a continued discussion of budget plans Dec. 16.

 

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