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Finance committee warns unallocated fund balance could run out by 2031; consolidation studies urged
Summary
Administrators showed an FY25 unallocated fund balance of $8,869,416 and projected that, at current withdrawal rates (about $2M/year), the reserve could be exhausted around 2031; the committee discussed commissioning population studies and early community engagement about possible consolidation or closures.
The RSU 11/MSAD 11 finance committee spent a significant portion of its March 31 meeting on the district’s unallocated fund balance and medium‑term fiscal outlook.
Business manager Andrea Dish showed an audited fund‑balance figure of $8,869,416 as of June 30, 2025, and explained that the administration is using part of those reserves — including a $700,000 special‑education reserve and another $1,325,000 — to buy down next year’s tax rate.
Dish said those withdrawals, combined with an annual average carry‑forward inflow of roughly $840,727, mean that, at present application rates (about $2 million per year used to reduce local tax burdens), the district would deplete its unallocated fund balance around 2031. She warned that using more carry‑forward this year would simply push the depletion date earlier.
“That is the fund balance as of the close of the fiscal FY25 year June 30th, 2025: $8,869,416,” Dish told the committee as she displayed audited statements and a projection model.
Committee members discussed consolidation as one structural option to close the gap. Andrea said the district will seek permission to engage a firm to produce enrollment and facility‑use models; those studies would inform options such as building consolidations or redistricting. Board members emphasized community engagement and statutory steps required under state law to close a school, noting that the Department of Education must review projected savings and municipalities may be given the option to keep a school open by raising additional funds.
Several members warned the committee faces limited near‑term choices other than deeper classroom cuts or asking towns to accept much higher tax rates. District leaders told the finance committee they will develop scenarios that show tradeoffs — for example, how reducing the use of carry‑forward raises taxes sooner and how consolidation timelines and statutory requirements affect implementation.
Next steps: the administration will commission or initiate population and facilities studies, prepare community‑engagement plans and present options to the board for consideration ahead of the April budget cycle.
