Staff Writer

Scarborough councilors on Monday decided against adding municipal surplus money to help bolster the 2011 school budget.

Voters on May 11 defeated the proposed $34.9 million school budget, 493-483. In a second, nonbinding question, 490 voters thought the budget was too low while 387 thought it was too high.

The revised, $35 million budget includes an additional $100,000 from the school department’s teacher accrual fund. Board of Education members on May 17 passed a resolution asking for as much as $200,000 in municipal surplus funds.

“We need to hold on to the surplus,” Councilor Ron Ahlquist said. 

Finance Director Ruth Porter said shifting $100,000 from the municipal unreserved fund balance to the school budget would have decreased the proposed property tax increase from 3.9 to 3.7 percent.

The total municipal fund balance is $6.05 million, but $5.4 million is set aside to cover municipal operations if needed and to avert borrowing against future revenues, Town Manager Tom Hall said.

That leaves about $556,000 available, but councilors said they were reluctant to use it because dipping into the fund could eventually lower the town’s bond rating and increase interest payments on future bonds.

At 3.9 percent, the tax rate of $12.15 per $1,000 of assessed value will increase to $12.63 per $1,000 of assessed value. The projected increase stemming from the combined school and municipal budgets and Cumberland County share would add $144 to a tax bill for a property valued at $300,000.

Councilor Mike Wood said the Board of Education also has $106,000 that could be used to restore cut positions.

The money, part of $668,000 in restored state aid, had been set aside to pay for support staff needed for 1,100 laptops at Scarborough High School. The council in a 4-3 vote this month removed the computer purchase from the capital improvements budget.

The Board of Education’s budget is about $100,000 below the current $35.19 million budget the council and voters approved. The new budget includes $100,000 from a teacher accrual fund used as a reserve to pay departing teachers or in the event of a department shutdown,

The fiscal year 2011 budget is higher than the initial $34.41 million proposed in February, due in large part to restoration of general purpose aid by the Department of Education and $400,000 shifted from a teacher accrual fund that has a balance of about $2.6 million.

Money intended for the laptop program and from the teacher accrual fund could help restore some of the 31 positions targed for elimination, said Chairman Brian Dell’Olio.

Dell’Olio said the board has not decided which positions to restore, although it is receiving many suggestions from residents.

Many suggestions center on returning gifted and talented teaching position at Scarborough High School to full time and restoring partial position cuts in art programs at several schools.

Eliminating positions is not always the same as eliminating teachers, Dell’Olio said. Some positions that are open because of resignations or departures may not be filled. Union contract provisions also dictate how teachers can be laid off.

The department already has decided against renewing Scarborough High School Principal Patricia Conant’s contract and accepted the resignations of Scarborough Middle School teacher Nicola Donatelli and Kevin Wood, director of grounds, maintenance and buildings.  Blue Point Primary School Principal Susan Helms is retiring, as are high school teacher Peter Horton and middle school art teacher Leita Karol.

“The only thing we know for sure is the process is still confusing,” Dell’Olio said.

The budget process will continue with a Board of Education meeting Thursday, after the Leader deadline and a second reading and council vote on the proposed $35 million school budget Wednesday, June 2.

A  referendum on the budget will be held during the state primary and bond referendum from 6 a.m. to 8 p.m. June 8 at Scarborough High School.

Staff writer David Harry can be reached at 282-4337, ext. 219