KENNEBUNK ”“ The finance committee of Regional School Unit 21 School Board proposed a 3.69 percent increase in the district’s operating budget in 2016. A referendum on the $40.5 million budget for the towns of Arundel, Kennebunk and Kennebunkport will be held in June.

The operating budget dovetails a $56.5 million planned renovation of Kennebunk High School, Kennebunkport Consolidated School and Mildred L. Day School, which will also likely go to voters in June. Voters struck down a similar $75 million plan in January of last year.

Superintendent Kevin Crowley said he had the fiscal concerns of voters in mind when crafting the operating budget for 2016.

“We went through two goals: Maintain the existing program that we had and, my own goal, zero-percent in non-labor [cost increases],” Crowley said. “It was important because I saw falling support for the operating budget ”¦ quite honestly there’ve been some tradeoffs.”

Finance Committee Chair Matthew Fadiman also noted that revenues from the state, which had been in freefall since the recession, appeared to be stabilizing at an estimated $4.5 million.

Increases to the budget include five new buses to replace old vehicles in the district fleet, contracted increases to salaries and benefits for district employees, and a $500,000 interest payment if the proposed renovation bond is approved by voters. Additionally, $450,000 will be taken from the Capital Reserve Fund for the proposed renovation, which will also need voter approval.

The proposed increases for 2016 will be offset, in part, by a one-time $1.2 million payment by the state that represents excess funds paid by Kennebunk and Kennebunkport in the 1990s. Under the proposed budget, this surplus will be repaid to both towns based on their relative share of the old SAD 71 budget in the 1990s. This means that the estimated taxes per $100,000 property valuation will go up by 3.65 percent in Alfred, while they will increase only slightly in Kennebunk and decrease in Kennebunkport.

“We enjoyed a one-time windfall to the old SAD 71 schools ”¦ that we will enjoy in 2016,” Fadiman said.

Board member Susan Sinnott Curran wondered whether the payment from the state was being distributed fairly now that Kennebunk and Kennebunkport have combined their school administration with Arundel into RSU 21.

“Why isn’t it benefiting the entire consolidated district?” Curran asked. “The (tax) hit that’s going to Arundel is huge.”

School Board Chair Maureen King pointed out that Arundel was credited with funds that Kennebunk and Kennebunkport didn’t receive for the first year following the consolidation.

“I think this is probably the cleanest way to deal with it ”“ put it to bed once and we’re done with it,” King said.

The board will solicit comments from the community on April 6 and hold a second reading on April 27 before sending the budget to the public for approval on June 9. The proposed budget can be found on the district website, rsu21.net.