SAD 1 braces for
estimated $1.1 million shortfall
By Scott Mitchell Johnson
Staff Writer
PRESQUE ISLE — In the coming months, SAD 1 officials will be looking at how to fill another gaping hole in a school budget, this time, the 2013-14 school budget.
At the Nov. 14 board meeting, Charles Anderson, the district’s business manager, shared the bleak financial news with directors.
“Though this is only an estimate, based on what we know and what we’ve heard over the last four budget seasons, we’re anticipating another hole to fill of at least $1 million,” said Anderson.
There are several factors related to the budget gap including a large decrease in state aid.
Back in 2003, Maine voters passed a referendum that would require the state pay for 55 percent of the cost of education and reduce the burden on property taxpayers. However, in the years since, the state has never met that 55 percent commitment and SAD 1 is now looking at a projected loss of $546,000 for next year.
“We know that we have a new Legislature coming in who may have different priorities resulting in more money for education,” said Anderson, “but we’re not expecting a great deal of relief.”
SAD 1’s steady decline in enrollment is also working against the district.
“We’re seeing a three-year weighted average of 57 pupils lost, or about 3 percent, and we know that will translate into several hundreds of thousands dollars lost,” Anderson said.
In addition, the State Assessors Office continues to maintain that the cumulative value of SAD 1 communities is growing at a rate of 4 percent while the average state valuation declines. The scenario results in an additional loss of hundreds of thousands of dollars in state aid to SAD 1.
The district is also expecting certain cost increases including an already negotiated 3 percent cost of living adjustment for employees, as well as a projected 4 percent increase in medical insurance premiums.
“Employment cost increases represent about $575,000,” said Anderson, “so the overall size of the problem is at least $1,121,000.”
Superintendent Gehrig Johnson said the district has, for several years, worked diligently to not pass any increase on to SAD 1 communities in the municipal fiscal year, but that may no longer be an option.
“In order to keep the tax bill to Presque Isle flat, we’ve actually lowered our share of the mill rate in each of the last three years,” he said. “In the last three years we’ve had no new positions introduced and have in fact eliminated 37 positions. Our 2013 budget is the same today as it was five years ago in 2007.
“I think we’re at the point where we have to decide whether we will continue to offer the current quality education system to our communities or not. We’ve thus far made all the reductions we can without directly impacting students,” said Johnson. “We can’t continue plugging $1 million holes in the budget by simply cutting it. We have only two ways to make up deficits — reduce spending or raise local tax revenue. We’ll sit down next month and begin to look for answers.”
Also at the November meeting, directors:
• Voted to reschedule the district’s March in-service day from March 22, 2013 to March 15, 2013 in order to schedule nationally known author Bea McGarvey for a staff development workshop on mass customized learning.
• Accepted the low bid from Langille Construction to provide snow removal/sanding services for a three-year period at a total cost of $159,358.50.
The next SAD 1 board meeting will be held Wednesday, Dec. 12 at 5 p.m. at the board conference room at Presque Isle High School.
