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RSU 23 board adopts 2016–17 budget, dedicates extra to reduce $600,000 deficit
Summary
The RSU 23 board approved a $13,316,762.55 budget (5% increase) that dedicates the additional 2%—about $236,000—plus a proposed $100,000 from a Harriman line item to begin reducing a roughly $600,000 negative fund balance; the measure passed 3–2.
Chairperson Carol Marcotte presided over an April 7 meeting in Old Orchard Beach where the RSU 23 board voted 3–2 to adopt the 2016–17 budget, approving a $13,316,762.55 spending plan that increases the district budget by 5% and dedicates the extra 2% to reducing a roughly $600,000 negative fund balance.
Board member David Boudreau framed the options the board had considered: approve a larger budget now, pursue a separate ballot question to shift the deficit to the town, or attempt a later referendum. “If we pass a 5% budget we would still have $250,000 that have not been addressed,” Boudreau said, emphasizing the limits of the 5% option while arguing for fiscal responsibility to preserve borrowing capacity.
Superintendent Lloyd Crocker outlined three approaches the administration had identified: (1) raise the overall budget to 5% so the additional 2%—about $236,000—could be applied to the deficit and earmark $100,000 from the Harriman project to reduce the shortfall by roughly $326,000; (2) present a 3% budget and, separately, seek voter approval to cover the deficit (which would require legal review for ballot wording and eligibility); or (3) adopt the budget and hold a separate referendum on the remaining amount. Crocker said officials would need to consult counsel to confirm ballot language and permitted ballot questions.
Chairperson Marcotte and other members raised concerns about changing the budget presented at prior public budget meetings. Peter Flaherty argued for proceeding with needed capital work, saying the district needs new Jameson and Loranger Memorial School facilities. Board discussion repeatedly returned to the district’s bond rating and the risk that an unresolved deficit could limit borrowing for necessary repairs or replacements.
After procedural adjustments and retracted earlier motions, David Boudreau moved to adopt the 5% budget with Peter Flaherty seconding; the motion passed 3–2. The board separately and unanimously approved the 2016–17 Adult Education budget of $492,917, with Old Orchard Beach’s local contribution set at $114,802.50.
The vote resolves the district’s immediate budget adoption but leaves a remaining deficit balance to be addressed through further fiscal actions, ballot work or internal reductions. The board and administration signaled they will continue to explore options, including targeted reductions and legal counsel on ballot procedures, before pursuing longer-term facilities borrowing or projects.
