State aid for local education will be significantly less next year for school districts in the Lakes Region, according to a state report released on Monday.
Compared to the current school year, RSU 14 (Windham-Raymond) is set to lose $1.8 million in state subsidy for education; SAD 6 (Bonny Eagle) is set to lose $767,000; and SAD 61 (Lake Region) will lose an estimated $921,000.
The projected cuts in state aid come in the middle of budget deliberations, and the news, which means local taxpayers could carry more of a burden if school districts don’t make commensurate cuts, is unwelcome to budget makers, but not surprising, considering the state handed down a mid-year budget curtailment in November.
SAD 6’s loss of $767,000 in subsidy means the district will receive $20.8 million in state aid. Assistant Superintendent Rick Matthews said he’s expecting the district has not heard the last of state aid cuts.
“This is the second year running for a mid-year correction, and I don’t think anyone is banking on the fact there won’t be another curtailment next year,” Matthews said.
Matthews said the school district faces some hard decision in coming weeks as it tries to cushion the blow. Matthews said there are currently no expectations of forced layoffs, but balancing the budget with no significant cuts will prove challenging.
“The initial goal is not to exceed last year’s budget, but can we make this work, that is something the Budget Committee will take a look at to see whether our goals are reasonable,” Matthews said.
At Lake Region, where the $921,000 cut brings the level of state aid down to $1 million, Superintendent Patrick Phillips said tough choices lie ahead for the school district as well. Does it raise taxes? Or will it make deep cuts and flat-fund education?
“The news is not good. It’s really a perfect storm with a number of factors, all of which are working against us,” Phillips said.
First, he said, the formula the state uses to determine the amount the state awards schools favors communities that have a high number of students, low incomes, and low property values, none of which describes the Lake Region school district. By cutting state aid, Phillips said the state is assuming property taxpayers in Casco, Naples, Bridgton and Sebago can bear more of the cost of education.
“Over five years time, we’ve seen state aid go from $6 million down to $1 million,” Phillips said. “The state obviously thinks with the amount of lakefront property that there’s enough taxable property to fund education without help from the state.”
But this is not quite the reality on the ground, Phillips said. Yes, Naples, Casco, and Bridgton have their fair share of expensive lakeside seasonal camps and year-round homes, but the towns also have their fair share of people who can’t afford to live closer to Portland, where they work. In fact, 50 percent of students qualify for free and reduced lunch, a signal that parents are struggling financially. Phillips said the economic reality, therefore, might drive the school board to find cuts, rather than automatically pass on the costs of education to local taxpayers.
“There’s a perception by the (school) board that the state assumes we have the ability to pay, but the board is also reluctant to pass along the budgetary gap and is looking for ways to come in with a net decrease in spending,” Phillips said.
In Windham, Superintendent Sandy Prince and the school board are facing an even more significant loss of subsidy: $1.8 million compared to last year. Windham faces the same issues Lake Region does, with high property values compared to the rest of the state and a perception that local taxpayers can bear more of the cost of education.
Unlike SAD 61, Windham-Raymond also receives more aid from the state, $13 million compared to Lake Region’s $1 million for the coming 2010/2011 school year. Nevertheless, the district will be hit hard by the expected $1.8 million cut, and faces the same choices other Lakes Region districts face.
“This is a huge shift as we think about our budget,” Superintendent Sandy Prince said. “I’m not prepared to speak about specifics of what will be reduced. I’m still working with the administrative team on that.”
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