BATH

Preliminary budget figures for the 2012-2013 school year indicate that Regional School Unit 1 will face a budget gap of approximately $1 million between reduced revenues and increased costs of health insurance, fuel and heating oil, according to Superintendent Patrick Manuel.

Manuel and the district’s administrative team will hold preliminary budget discussions with the RSU 1 Board of Directors during a workshop scheduled for 4:30 p.m. today in room 301 of the Bath Regional Career and Technical Center.

In order to address “difficult” budget discussions early, Manuel said he has begun to solicit ideas and suggestions from staff about how to best fill that gap.

Added to the increased costs, RSU 1 and other districts will likely face another major loss next year: “Maine Department of Education Deputy Commissioner Jim Rier has advised state school systems not to count on Medicaid reimbursement revenues,” Manuel wrote in an email to The Times Record.

That alone will reduce revenues by $50,000, he said.

Federal Job Bill funds will also not be available next year, although the $480,000 the district received this year funds seven positions.

The district also anticipates taking in $ 40,000 less in tuition and $ 36,000 less in grants.

However, RSU 1 expects $100,000 more in general purpose aid, Manuel said.

Over the last three years, the RSU 1 budget has included the reduction of 40 positions, according to Manuel. The local appropriation for the five communities that make up RSU 1 — Arrowsic, Bath, Phippsburg, West Bath and Woolwich — has increased a total of 1.27 percent.

“ These are early projections, but I do want people to know what we are facing and hopefully generate some ideas,” Manuel wrote.

Following today’s workshop, the board will hold a regular meeting at 6 p.m. at Morse High School. Among other agenda items, the board will:

— Hear a student report on a Bath Middle School student energy proposal

— Hear reports from the Woolwich Building Committee and Finance and Policy committees

— Hear a report from Manuel, including update on drug dog searches at Morse High School, Central Office lease, financial report and fundraising requests

— Hear a report on the retirements of Morse High School art teacher Janice Wright and West Bath School first- grade teacher Diane Morris; and the appointments of Morse High School JV boys’ basketball co-coaches Charles Reese and David Dorion.