RSU 40/MSAD 40 school board members approved the minutes from Jan. 16 and spent the meeting reviewing February warrants and the district's financial position, with staff raising concerns about possible reductions in federal meal reimbursements if the state requires proof-of-income documentation and about rising insurance costs that could strain next year's budget.

Board members voted to approve the Jan. 16 minutes; a motion and second were made and the board recorded three votes in favor. No other formal actions were taken on the financials.

Board members and staff went line-by-line through warrants and payments, asking about several individual charges and purchases. Among items discussed were a "precision tank" listed at about $17,000, kitchen equipment and ovens, single-source reservation tags, and a technology purchase from vendor ProAV of roughly $34,000 for premium boards. A speaker noted that the ProAV purchases were recorded in January.

Staff described pressure in the district's special-education budgets, particularly in self-contained programs, saying higher staffing costs and the use of substitutes had pushed expenditures above budgeted amounts. The district has moved some positions to Miller School and is still reconciling the staffing allocations. The board discussed the possibility of redistricting as a longer-term option; one speaker said an "extreme" redistricting could save around $1 million but acknowledged that such changes would be disruptive and require more study.

School food reimbursement also drew extended discussion. A staff member explained how the federal and state reimbursements currently flow through the state and said that historically the federal program reimbursed a higher share for free and reduced-price meals. Staff estimated the district is receiving roughly 51% to 52% of the eligible reimbursement now, but warned that a proposed state requirement for proof-of-income documentation for every household could reduce participation and lower the district's effective reimbursement. "It has to be the same for both free and reduced," the staff member said, adding that if the state begins requiring income documentation from all families, the district expects fewer families to supply that information and the reimbursement gap could widen.

Board members asked whether the state would make up any shortfall; staff said that was unclear and that the district had previously used local funds to cover differences when necessary. The staff member noted that last year the district reduced a line item from about $125,000 to $55,000 for the local tax base, but said there is uncertainty about future federal and state policy moving forward.

Insurance costs were another recurring theme. Staff reported property-insurance premium increases in the high-teens percentage range and said they had budgeted a 10% hedge but that the health-insurance trust has observed roughly an 18% increase overall. The staff member said the district's share for single health coverage this year runs around $12,000 and family coverage around $20,000 to $23,000, with the employer covering roughly 80% in current collective-bargaining agreements. The board discussed options like plan tiers with higher deductibles and noted that the state participates in bargaining for some components of the plan.

Other operational notes included that several librarian hires had been made but some encumbrances were not yet posted, and that the district pays occasional extra costs for graduation security and ambulance coverage. A vendor named Murphy and Duffy was identified as having built or repaired a district trailer.

Board members agreed to continue deeper discussion of redistricting and the district's financial condition at a future meeting. No motions to adopt budgets, contracts, or policy changes were made at this session.

Ending: The board scheduled further budget and redistricting discussion for a future meeting; no additional formal actions were recorded at the close of this session.