RSU 38 board reviews FY27 draft budget as state funding drop shifts costs to towns

RSU 38’s board of directors received a second-draft FY27 budget update that totals about $24.36 million and reflects a net reduction of roughly $611,591 from the board subcommittee’s first draft. The administrative presentation said the change narrowed the draft’s expenditure increase to 2.89% year over year but — because the state’s ED279 funding formula reduced the district’s EPS allocation by roughly $672,000–$679,000 — the required local contribution across the four sending towns rises by about $665,000, increasing local tax burden by roughly $1.1 million in total.

The administration listed the revisions that produced the reduction: eliminating five positions through attrition (including an elementary principal and a high-school math teacher), removing a planned maintenance garage and cutting bus purchases from two to one; it also restored CATC participation at a reduced level and reinstated a targeted summer-school program for high-need students. The presenter said health-insurance budget projections were increased from 10% to 15%, and the district’s SRO cost rose by approximately $5,000 after receiving an updated salary schedule from the KBEC County Sheriff’s Office.

“State EPS funding dropped about $679,000 and an 11% reduction,” the presenter said, summarizing the ED279 results and the resulting shift to the local match. The administration emphasized that, under Maine’s funding formula, rising local property valuations can reduce state aid and thereby increase required local contributions even when the district’s spending growth is modest.

Board members said they were particularly concerned about distributional impacts between the four towns. The presentation showed Mount Vernon facing the largest percentage increase (about 10.6%, roughly $379,000) because its three-year average property valuation rose by about 21.5%; Manchester’s contribution was shown increasing about 5.6% (≈$274,000), Reedfield about 5.4% (≈$240,000) and Wayne about 6% (≈$174,000). Trustees asked staff to develop clear communications explaining why some towns see larger increases.

Trustees pressed staff on specific impacts of proposed staffing changes. The administration reported 12 positions of interest (eight retirements/resignations and four vacancies) and recommended eliminating five positions through attrition, saving an estimated $435,766; additional reductions-in-force (RIFs) were presented as possible for three roles with projected savings of roughly $174,000. Staff said any RIF process would follow Maine Revised Statutes Title 20-A and collective-bargaining agreements, including notification timelines and coordination with the union.

Board members also questioned how reductions would affect service delivery — for example, reducing elementary counselors from three to two would raise caseloads — and asked for data showing current counselor caseloads and whom they actively serve. On middle-school world-language coverage, staff said principals are working with the world-language department to reconfigure services if a vacancy is eliminated.

The administration clarified fund-balance mechanics after trustees raised liability concerns. Staff member Mandy explained that the district’s total fund balance is about $2.9 million but that roughly 70% is already assigned (carry forward, capital reserve, special-education reserve), leaving about $700,000 unassigned (approximately 3% of the proposed budget), well below Maine’s 9% statutory cap on unassigned reserves.

Trustees and staff discussed outreach strategies to families who have left for charter schools or homeschooling, noting the district’s historical “capture” rate from birth cohorts has declined and that reengagement efforts helped recover students during previous downturns. The board emphasized the need for strategic planning and broad community engagement; staff will present the “Building Stronger Together” one-year strategic-planning outline on March 11, with a third draft budget due March 18, final approval April 15, the annual budget meeting May 13 and the town referendum June 9.

The board accepted, by unanimous voice vote, two personnel items on the agenda: the retirement of Manchester Elementary principal Abby Hartford, effective June 2026, and the resignation of high-school mathematics teacher Tanya Hunt, effective June 2026. Trustees also voted unanimously to enter executive session to consider negotiations with the Morirana Cookook Area School Support Staff Association pursuant to MRSA 405D.

The board asked staff for follow-up materials: a school-by-school budget breakdown, counselor caseload data, and the calculations underlying town-by-town tax impacts to aid public communication ahead of the referendum.