OLD ORCHARD BEACH — An increase in state school subsidy will help offset taxes and go toward capital improvement projects.

When the Maine Department of Education released state subsidy figures earlier this month, many school districts learned they would be receiving more state subsidy than originally thought.

Regional School Unit 23, covering Old Orchard Beach, is receiving $146,000 than originally thought. 

Half of the amount, $73,000, will go toward tax relief, said Suttie. 

According to a recently enacted state budget bill, school districts which passed an annual budget prior to the final state numbers coming out and did not add a provision to authorize the school board to use any additional state funds received must apply 50 percent of the additional funds to reduce the school district’s required local contribution — which should reduce local taxes — according to a press release from the Maine DOE.

Suttie said the other $73,000 will go toward addressing capital renovations or any unforseen facility projects.

Prior to the announcement of the additional funding, the school district had paid off its debt and passed a budget that addressed the needs of the students while not exceeding a 3 percent increase from the previous year, Suttie said. 

“We’re in a very fiscally healthy place,” he said.

Finance Director Diana Asanza said the $73,000 will be used to offset the current year’s taxes, which will be reflected in tax bills going out this fall. She did not have a figure on how this would impact taxes. 

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribune.com.