Schools face funding gap (Printed Nov. 27, 2009)

By Suzanne Hodgson
Staff Writer

For the second year in a row, Kennebunk, Kennebunkport and Arundel schools, now known as RSU 21, will face budget cuts.
RSU 21 is expected lose more than $880,000 from its $34 million budget – a 2.6 percent reduction of total state and local approved spending.
On Nov. 20, Gov. John Baldacci ordered an immediate $63.1 million spending reduction to cut the rate of spending so Maine can end the year with a balanced budget.
“It is our intent to keep these cuts as far away from classroom instruction as possible,” said RSU 21 Superintendent Andrew Dolloff in a prepared statement sent out Monday morning. “That’s not easy when nearly 80 percent of the budget is tied up in personnel costs- the vast majority of which have a direct impact on our students’ learning and safety.”
RSU 21’s School Board Chairman, Maureen King, said trying to make up the budget curtailment could be like reading a crystal ball.
“Where can we afford to cut? How are we going to get there? We’d like it to be without laying people off, and touching the classroom as little as possible,” said King, “We don’t want to get people upset because we’re cutting their – fill in the blank.”
King said the school board and finance committee will go through the budget and come up with a list of areas to cut and it will be up to the board to make a final decision on any budgetary cuts in spending.
Dolloff’s statement indicated the district had a plan for making up the budget gap by using unanticipated revenue from Medicaid reimbursement, reducing the budget for special education out-of-district placement, and reducing all supply budget lines by 45 percent.
This year’s state education budget cuts, called a curtailment order, is temporary and used to reduce the rate of spending until a supplemental budget can be passed to address the predicted revenue shortfall.
When the legislators reconvene in early January the representatives have the option to pass the supplemental budget as it is, or make changes.
“It’s going to be a very difficult session,” said Democratic State Representative Gary Connor, “It’s a bad time, that’s for sure.”
Connor, who represents Kennbunk and Arundel,  said short of changing Maine’s constitution to allow an unbalanced budget at the end of a fiscal year, cuts were imminent.
Connor said part of the reason for the cuts was the economy and the spikes and falls in Maine’s taxes.
While Baldacci may not want to raise taxes, Connor said, “it’s a conversation we’ll continue to have throughout the coming months in the Legislature.”
In the meantime, the schools will continue to receive monthly checks from the state at the previous level, but many schools are working under the assumption this money will not last.
Because the state’s two-year budget is prepared in advance, officials use projected revenue figures.
According to information released by Baldacci’s office, the state’s projected revenues are $93 million below what was budgeted and could be as much as $400 million under budget next year.
Maine is far from alone in its budget shortfalls. With more than six months before the June 30 end of the fiscal year, the revenue for all 50 states is already $113 billion dollars less than projected, according to a prepared statement by Baldacci’s office.
Last year the states cut spending to close a budget gap of $72.7 billion. Schools faced cutbacks during the 2009 fiscal year school budget curtailment, but the schools were saved from much of the monetary loss due to federal stimulus money.
Department of Education Spokesman David Connerty-Marin said next year’s budget passed by the Legislature already includes a $55 million education reduction.
He said the governor recently said to expect an additional reduction of $36 million to the education budget.
For RSU 21, Dolloff’s statement said it does appear the school can make up the reductions without losing jobs or programs, the state has indicated budget cuts will continue into next years fiscal year.
“It puts a strain on everyone, but I believe we have a solid plan in place that preserves jobs and maintains programs for the remainder of this year, anyway,” said Dolloff.
RSU 21 Finance Committee will recommend adoption of the curtailment plan during its Dec. 7 meeting.
    
Staff Writer Suzanne Hodgson can be reached at 282-4337, ext. 233.

 

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