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July 31, 2010

Six school districts get surprise penalties

By Matthew Stone mstone@centralmaine.com
Staff Writer

AUGUSTA -- Fayette and Winthrop residents thought their schools would be exempt from state subsidy penalties once they ratified a consolidation plan at the polls in May.

But when the first state subsidy checks arrived for the newly formed district, penalties had been subtracted.

For Winthrop, that meant its check was $15,400 less than it should have been. In Fayette, the check was $3,400 less than school officials expected.

Subsidy amounts were less than anticipated in five other Maine regions where residents voted this past spring to form new consolidated school districts.

Fayette and Winthrop's superintendent said the school district will still be able to pay bills this summer.

"I think we're OK," said Briane Coulthard. "It just startled us."

The other school districts affected serve students in the Boothbay, Calais, Lee, Machias and Mars Hill.

Jim Rier, school finance director at the Maine Department of Education, said the school districts were assessed a penalty when they shouldn't have been, and will see the proper amount restored in future subsidy checks.

School districts receive 12 state subsidy checks a year.

"It's not affecting the revenue they'll get for the year," Rier said, "just when they get it."

The penalty deduction happened because voters approved their consolidation moves in the spring, after the Department of Education already had calculated and released subsidy amounts for the 2010-11 school year, Rier said.

"The units that decided to go forward in mid- to late-June, we didn't anticipate that going forward to readjust their subsidy," he said.

Rier said Department of Education employees are at work adjusting the districts' subsidy amounts.

"We're working very hard to make sure that happens for all of them," he said. "It's routine for us to make adjustments based on changing conditions, not just on (the penalties), but all year round."

Matthew Stone -- 623-3811, ext. 435

mstone@centralmaine.com

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