District finance staff led a training Tuesday evening to help board members prepare for the 2025–26 budget season, walking the MSAD 16 School Board through basic budget terms, funding sources and the multi-month timetable the district follows.

The presenter explained the difference between operating and capital budgets, how warrant (budget) articles are voted at the district meeting, and the states EPS (Essential Programs and Services) model that drives state aid. She said the states constitutional objective that the state fund about 55% of K–12 costs applies across the state, not necessarily to each district.

The district reviewed important deadlines: October kicks off internal budget work, drafts are refined November–January, the state announces funding in early February and the board must finalize the budget in April to meet legal posting and printing deadlines ahead of the May district budget meeting and subsequent referendum. Staff warned the April window is legally firm and often compressed, urging earlier board involvement—facilities and transportation were identified as areas where earlier workshops could help.

The presentation outlined fund balance as district reserves (assets minus liabilities) and noted a state limit starting in fiscal 2026 of 5% of the budget. For MSAD 16, the presenter said 5% equates to roughly $2.5 million (about one month of payroll). Staff recommended using reserves for one-time purchases rather than recurring personnel costs and said the district will step back from relying on fund balance to reduce taxes.

The session also covered federal grants (ESEA and IDEA), E-rate discounts for technology, and operational concepts such as encumbrances and cost centers. Board members requested more granular, student-level data and were told the district will work with technology staff and provide additional information at upcoming September meetings.

The training included a brief update that an interest-rate reduction on recently approved bus leases will lower costs slightly—staff estimated modest savings totaling roughly $2,500 over the life of the leases. The presenter emailed materials to the board for reference. The board did not take legislative action on budget items at the meeting; staff said they will return with more detailed workshops.