Maine news, sports, weather | Kennebec Journal, Augusta, Maine

STATE AID

School funding bad; not totally horrid

Early look for local districts

By Scott Monroe smonroe@mainetoday.com
Staff Writer

School districts in central Maine are looking at mostly bad news -- though not as bad as once thought -- when it comes to state education aid.

The preliminary data, released Wednesday by the Maine Department of Education, is providing early looks at how local districts may deal with budget holes.

Among the hardest hit locally is Regional School Unit 18, which serves Belgrade, China, Oakland, Sidney and Rome. Its state subsidy for the 2011-12 fiscal year is projected at $14.4 million, which is $1.55 million less than last year.

"This is very much in line with the numbers we received from the state last April," said Gary Smith, superintendent of RSU 18. "Like many districts, we've been preparing for us. The good news is we were initially thinking it would be more like a $1.7 million loss. The good news is it's more like $1.6 million. So, we knew it was the year of the cliff; we knew it was going to be bad."

To close that budget hole, Smith said district officials will look at several strategies, including program and staff cutbacks, new efficiency measures, increasing district revenues and collaborating more with other area school districts.

"I've been going around to each building to talk with teaching staff about the budget challenge we face, listening very intently if there are any new ideas," Smith said.

State education aid in each district varies depending on its student population and property valuations, as calculated through the Essential Programs and Services funding formula.

School districts knew this year would be tough with the conclusion of federal stimulus money, intended to help schools weather the Great Recession. The loss of such funding under the American Recovery and Reinvestment Act, however, will be somewhat softened by $30 million from a new federal jobs bill, which most school districts have saved for this coming year.

Smith said he's looking at using the funding from the federal jobs bill to pay for 10 district jobs in the coming year.

In addition, Gov. Paul LePage's budget proposal includes an extra $22 million to be shared among Maine schools.

The additional boosts in state and federal funding this year mean school districts are seeing "two years of a cliff that's not as steep," Smith said.

State aid to local school districts varies greatly, with some losing, running flat, or gaining slightly. Newport-based Regional School Unit 19 is slated to receive $13.6 million, an increase of $153,000, while Skowhegan-based School Administrative District 54 is getting $16.5 million, a decrease of $668,000.

Eric Haley, superintendent of Alternative Organizational Structure 92, serving Vassalboro, Waterville and Winslow, said Friday that he was still reviewing the state's early data. It showed his district receiving $23.1 million, an increase of $481,000.

Haley questions that number, as he's unsure whether it includes funding for the recently opened Educare Central Maine, an early childhood education and care facility funded through federal aid and private donations.

Whether Educare is included in AOS 92's funding data will make a big difference, Haley said, and he thinks it probably is.

"If that's the case, I'd guess it's flat-funding for us," Haley said. "By the time we get done, I'm projecting a loss, but not quite as bad as what I prepared people for."

The big question for Haley is how much employee insurance costs will rise. Haley said he estimated an increase of 10 percent for his budgets.

One strategy used by local districts last year to make up for their budget holes was closing school buildings and moving students into existing ones. Local schools that closed last year were Burnham Village School, Cornville Elementary School, Embden Elementary School, Palmyra Consolidated School, and Starks Elementary School.

Voters in RSU 18, however, rejected a proposal late last year to close the Atwood Primary School in Oakland.

"There are no school closures in our plan," Smith said. "Closing Atwood would have saved half a million dollars, but we're moving on. I cannot rule out staff reductions -- I hope there won't be.

"My plan, and I think it's doable, is this is not a situation where we can consider passing on a local tax increase. We will strive very hard to be tax-neutral to the RSU 18 towns."

Scott Monroe -- 861-9239

smonroe@centralmaine.com