Houlton School District voters have approved a 3.77% budget increase that maintains current school staffing and student programs on Tuesday night at Houlton Middle High School.
The $18.4 million budget, set by the school board on April 6, includes a $4.6 million total local contribution from the towns of Hammond, Houlton, Littleton, and Monticello. Of that total, $2.9 million is required by the state and an additional local contribution of $1.6 million is needed to bridge the funding gap, Superintendent Joe Fagnant said.
Fagnant attributed the local contribution increase to the state’s current school funding formula, which relies heavily on property valuations and hurts poor rural communities. As valuations rise, school districts get less from the state and district residents pay more, he said.
“As costs continue to rise, the current funding formula for Essential Programs and Services does not keep up with required expenditures,” Fagnant said.
While rising property valuations hurt the state’s poorest towns, a new state law, LD 2226, signed by Gov. Janet Mills on April 16, may lessen future funding burdens, according to Fagnant.
Updating state funding formulas to include regionally adjusted considerations, this new law creates an opportunity for poor rural districts to get more funding, Fagnant said.
“We don’t know what that will exactly look like, but it has been estimated to bring anywhere between $700,000 to $990,000 of more funding to RSU 29,” he said.
Valuations for the district’s four towns cumulatively increased 8.1% this year, or roughly $38 million over last year. Hammond increased 4.94%, Houlton, 8.42%, Littleton, 8.13% and Monticello, 6.85%.
“There are no new housing developments, no new businesses, no major industries in our area that represent $38 million of true taxable income,” Fagnant said.
For Houlton the additional contribution equals a $25 increase for every $100,000 in property valuation, according to Interim Town Manager Nancy Ketch.
“This is assuming no adjustments to the school budget and none to the Town’s for 2026,” she said. “The difference between what was budgeted for the second half of 2026 and what we will owe (again, barring no adjustments) is a quarter mil.”
The district leaders worked on next school year’s budget since January to hold the line on most expenses. The 3.77% increase came from state mandated pay increases for hourly employees, legislated Paid Family Medical Leave, and negotiated contracts for all staff that increased about 3%, according to Fagnant.
RSU 29 is the lowest school district in the state for per pupil expenditures, at $12,958. RSU 50 in Dyer Brook spends $16,920 per student, RSU 39 in Caribou, $19,619 per student, and MSAD 1 in Presque Isle, $14,601, according to state records.
During Tuesday’s annual budget vote, several voters questioned the increase in special education funding, in particular for speech and language needs.
The district is seeing a rise in speech and language needs as more students in the early childhood and early elementary grades are requiring speech services, said Renae Foley, Director of Special Services.
“Our goal is to be prepared in that cost center as those services are trending upwards,” she said. “We have a combination of on staff providers and outside contracts to meet the needs.”
Voter Anne Johnson said she was frustrated with the questions about the special education increase.
“It would cost taxpayers about $50 more a year to help a child be able to communicate and improve their speech,” she said. “Isn’t it worth the small increase to help these children be able to communicate with their teachers, peers, and families?”
The Houlton school district continues to look at grant funding to offset costs including a USDA Distance Learning and Telemedicine regional technology grant of $1 million shared with schools in the Southern Aroostook Area Regional Service Center. RSU 29 will receive $612,525 of that money to invest in network infrastructure and equipment, Fagnant said.
The district was also awarded a School Revolving Renovation Fund project of over $1.9 million with $1,364,617 being paid by the state to remove asbestos from Houlton Elementary and High School, and improve insulation to stop sprinkler pipes from freezing at Houlton Southside School.
The district is required to support the remaining 30% of the project through a 10-year zero percent interest free loan which is a payment of $58,483 already built into the budget, Fagnant said.
On June 9, district voters will cast ballots on a Maine Department of Education School Revolving Renovation Fund referendum that if approved will help repair school buildings at a low cost, and use state funding instead of a large amount of local funds, Fagnant said.
The district is also seeking funding for a high school consolidation with Houlton, Hodgdon, and Region Two CTE. Part Two of the application process is due by Oct. 31, with the consolidation committee continuing to work to meet the deadline.
