By David Harry

Staff Writer

After RSU 21 School Board sent Superintendent Andrew Dolloff back to the budget drawing board last week, Gov.John Baldacci may have given him a better pencil to use.

Last Thursday, Dolloff learned the district, comprised of Kennebunk, Kennebunkport and Arundel, was in line to receive about $451,000 more than anticipated in state education subsidies.

Districts throughout the state became the beneficiaries of revised revenue forecasts by state officials and more federal Medicaid money, Baldacci announced last week. The revenue forecasts add $50.9 million and $27.8 million more in Medicaid money is available, Baldacci said in a press release last week.

The extra money allows Baldacci to restore $37 million in health and human services aid and $20 million in education aid for K-12 students, he said. Changes must also be approved by the Legislature.

Dolloff said it was up to the board to decide how the restoration of aid will affect the budget. It could be used to offset the $1.2 million reduction scenario requested after the board found a budget that called for $1.8 million less in spending too severe.

At a reduction of $1.2 million, Dolloff said a couple dozen jobs could still be lost and program reductions will also occur. The partial restoration of state aid means the district will see $1.4 million less as opposed to $1.9 million less for fiscal year 2011.

Dolloff said the revised state numbers are accompanied by board revisions to the budget that have amended proposed reductions in spending from $2.6 million less to $1.8 million to $1.2 million less Dolloff will present Monday night.

Budget documents drafted by the board call for spending reduction over the next two years before a $785,000 increase for the 2013 fiscal year.

RSU 21 also lost $883,000 in state subsidies for the current year in a curtailment ordered by Baldacci to balance the current state budget. The restored state subsidies do not affect the current budget, Baldacci said.

If the news of restored subsidies are relatively good news, Department of Education Director of Finance and Operations Jim Rier cautioned the fiscal year 2012 outlook could still be bleak because federal stimulus funds will not be available.

Rier said the restored funds surprised him after revenue forecasts had come up short over the least couple of years.

“I would have thought it was getting worse. But as concerned as we are with 2011, we are more concerned about 2012,” Rier said.

Staff writer David Harry can be reached at 282-4337, ext. 219