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RSU 06 board debates using $4 million of fund balance to mitigate taxes
Summary
Board members and residents questioned a proposal to use $4 million of the district’s fund balance to offset taxes, raising concerns about longer‑term cliff effects and how much unspent budget stems from unfilled positions.
RSU 06 officials presented a proposal at the budget workshop to use roughly $4 million of the district’s carry‑forward fund balance to lower the upcoming tax assessment. Board members and residents pushed back, citing the risk of a future “cliff” if the district relies heavily on fund balance year after year.
The district business manager summarized fund‑balance history from the packet, noting an estimated FY25 year‑end fund balance near $8.6 million and that the proposed approach would draw $4 million to mitigate taxes. “I believe a good practice would be to use a third of that fund balance but this proposal is using 46.5%,” a staff member said, noting that carrying forward will change under statutory limits in 2026 and the district must plan for a lower allowable carryforward percentage in later years.
Board members pressed for explanation of why budgets come in under plan; staff said much of the variance is from unfilled positions and contingency lines that were not spent. Peter, a board member, said he favored lowering the draw toward roughly one‑third of the balance and urged focusing spending on classroom priorities rather than athletic or noninstructional items. Other members warned that repeatedly drawing down the fund balance could leave the district exposed to tax spikes later.
Residents echoed the concern about tax pressure. A Buxton resident who is also a state representative reminded the board that Buxton voters rejected last year’s school budget and that towns in the district had mixed support; other commenters argued taxpayers are already stretched.
The board asked staff to provide further detail on unfilled positions and to model the tax and budget impact over the next three years under alternative fund‑balance draw scenarios. No formal decision to adopt the $4 million draw was made at the workshop.
Ending — Next steps Staff to provide a three‑year projection showing the effect of various fund‑balance draw levels on tax assessments and on operational cash flow, and to return with a more granular list of unfilled positions and contingencies that produced the current year’s surplus.
