RSU 40 budget committee recommends $40.8M FY2026 budget, creates reserve funds amid federal funding uncertainty

The RSU 40/MSAD 40 budget committee voted Thursday to send a proposed FY2026 general fund budget of $40,815,369 to the full board for approval and to the district budget meeting, and to establish two reserve funds to protect instruction and special-education services if federal aid falls short.

Committee members approved the package after hearing presentations on adult education, food service, system administration, debt service and capital needs and debating where to trim optional items. The motion sent to the board included language authorizing an "improvement of instruction" reserve (to be funded up to $750,000 if needed) and a special-education reserve (to be funded up to $650,000) for unanticipated gaps if federal grants do not arrive.

The recommendation follows presentations from administrators and staff outlining program changes and cost pressures. Karen (business manager) told the committee the district currently holds an unassigned fund balance of “around $2,000,000,” and recommended creating reserve accounts so taxpayers would not be asked to cover programs temporarily if federal Title funds are delayed or reduced. Karen said the reserve would be funded only if federal funding did not arrive and any expenditures would require separate board approval.

Budget highlights and drivers included: - Adult education: presenters reported 18 enrolled students and…