School district to ask town for more funds (Printed Dec. 11, 2009)
Posted by Leader Editor at 12/11/2009 8:21 AM 
Categories: Schools
Tags: Schools David Harry Economy Budgets and taxes
Categories: Schools
Tags: Schools David Harry Economy Budgets and taxes
By David Harry
Staff Writer
School officials have found ways to recoup almost $1 million of the $1.13 million loss in state subsidies, said Superintendent David Doyle.
But despite finding new revenues and cost savings, Doyle said the department may still face a budget shortfall of about $300,000.
He said he may ask the Town Council to help make up that amount when it meets Jan. 13.
Additional revenues of about $450,000 drawn from unused capital improvement accounts and unanticipated Medicaid payments of about $50,000 will help balance the budget, Doyle said.
He credited town Finance Director Ruth Porter with discovering the account balances that could be shifted to the department’s general fund.
District officials also intend to save about $200,000 by freezing spending on supplies, equipment and locking in a price to buy natural gas for school buildings that is about $120,000 less than budgeted this year, Doyle said.
A savings of about $100,000 in salaries from the budget figure also helps. The savings were created by lower-paid replacements for staff that left or retired.
However, the savings are countered by a potential overrun in substitute teacher payments, and food service revenues may not match expenses, Doyle said.
Town Manager Tom Hall said he, Council Chairman Carol Rancourt, Doyle and Board of Education President Brian Dell’Olio already met to discuss budget problems and know there may limits to what can be done.
Property taxes cannot be raised in the middle of the fiscal year, and the entire municipal budget will have to be reviewed to find ways to offset the school budget gap.
The subsidy reductions, commonly called curtailments by Maine Department of Education officials, stem from an order issued by Gov. John Baldacci last month in efforts to balance the state budget.
The department was ordered to eliminate $38 million from its budget. Because most department money is passed on to school districts, the subsidies had to be reduced in turn, said DOE spokesman David Connerty-Marin.
According to Dell’Olio, the school department had been receiving about $7 million in state subsidies, amounting to about 20 percent of the $435 million school budget.
The subsidy reductions are made each month, removed from money disbursed to local districts, Connerty-Marin said.
Staff Writer
School officials have found ways to recoup almost $1 million of the $1.13 million loss in state subsidies, said Superintendent David Doyle.
But despite finding new revenues and cost savings, Doyle said the department may still face a budget shortfall of about $300,000.
He said he may ask the Town Council to help make up that amount when it meets Jan. 13.
Additional revenues of about $450,000 drawn from unused capital improvement accounts and unanticipated Medicaid payments of about $50,000 will help balance the budget, Doyle said.
He credited town Finance Director Ruth Porter with discovering the account balances that could be shifted to the department’s general fund.
District officials also intend to save about $200,000 by freezing spending on supplies, equipment and locking in a price to buy natural gas for school buildings that is about $120,000 less than budgeted this year, Doyle said.
A savings of about $100,000 in salaries from the budget figure also helps. The savings were created by lower-paid replacements for staff that left or retired.
However, the savings are countered by a potential overrun in substitute teacher payments, and food service revenues may not match expenses, Doyle said.
Town Manager Tom Hall said he, Council Chairman Carol Rancourt, Doyle and Board of Education President Brian Dell’Olio already met to discuss budget problems and know there may limits to what can be done.
Property taxes cannot be raised in the middle of the fiscal year, and the entire municipal budget will have to be reviewed to find ways to offset the school budget gap.
The subsidy reductions, commonly called curtailments by Maine Department of Education officials, stem from an order issued by Gov. John Baldacci last month in efforts to balance the state budget.
The department was ordered to eliminate $38 million from its budget. Because most department money is passed on to school districts, the subsidies had to be reduced in turn, said DOE spokesman David Connerty-Marin.
According to Dell’Olio, the school department had been receiving about $7 million in state subsidies, amounting to about 20 percent of the $435 million school budget.
The subsidy reductions are made each month, removed from money disbursed to local districts, Connerty-Marin said.
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