SAD 29 budget hearing yields heavy discussion

By Gloria Austin
Staff Writer
    A public hearing on the proposed $12-million SAD 29 school budget generated much discussion on June 15 at Houlton High School’s cafeteria.
    And while all 17 articles passed by a wide majority, two of those articles drew significant dialogue from the roughly 60 members in the audience, resulting in a change to the required local assessment. Many of those in attendance were faculty members or their spouses.
    The budget still needs to be approved by SAD 29 voters at a referendum to be held Tuesday, June 28. Houlton, Monticello and Littleton voters may cast their ballots between 10 a.m. and 6 p.m., while Hammond’s polls will be open from 10 a.m. to 2 p.m.
    “This is a good crowd,” said Forrest Barnes, moderator of the public meeting. “This is the most I’ve ever seen at one of these meetings.”
    Before reviewing the articles, Interim Superintendent Ray Freve reminded those in attendance that when looking at school budget that “went up in gross expenditure” and that “taxes go up a little over 15 percent” that the ones “at fault are not in this room.”
    “The school board has made a sincere attempt at making sure we tried not to overtax our people in the balancing act of what is provided for the school and also what to provide for the local taxpayer,” he said. “I think they have a duel responsibility and I think they have done a very good job this year.
    “We can do what we want with the budget — raise the amount because we have an open article or lower it — whatever article you pick to raise or lower will not impact the local cost,” Freve explained. “The only way we can affect the local cost is on Article 12.”
    Sue Tortello, a town resident and member of the Houlton Town Council, made a motion to amend Article 12, which sets the required local share. Tortello explained the required local share is mandated by the state and it is not something coming from the local school board.
    “It is the amount of money determined by state law to be the minimum amount that the district must raised and assess in order to receive the full amount of state dollars,” she explained.
    Again this year, the state is offering an option that allows districts to reduce the required local share to no less than 82.22 percent and still receive the subsidy.
    “In real language, that means you cannot drop your required local share by more than 82.22 percent without taking a penalty in the amount you will be receiving from the state,” Tortello explained.
    As originally presented, the amount of required local tax dollars has increased for all towns within the SAD 29 district by an average of 15.2 percent over last year.
    “That’s a pretty big increase,” Tortello said. “If we go ahead and accept the option to drop the required local share, I do believe this action meets all the criteria of what we all in this room were working toward. It will not have a negative impact on student services. We will still be getting our entitlement from the state   it will not negatively affect teaching staff. What it will do it will very much do is ease the burden on the taxpayers in the SAD 29 district towns.”
    Tortello asked for a decrease of the total local share to $2,558,209 (a decrease of $248,270) that would be a reduction to 88.46 percent, which is within the requirements that the state has set out in order to receive full funding. By doing this, the tax impact will be lessened somewhat, but residents will still likely see a hike in their tax bills.
    School board member Fred Grant cautioned those in attendance to consider the future.
    It is very important to note that while we are disturbed by the amount our required local share has been raised by the state this year, that while we have a pass to be able to take advantage of the option this year, it will have to be repaid again next year by whatever percent it was paid down,” he explained.
    For example, if a 12 percent reduction is taken this year, it will be added to the required local amount for next year. The state will still require the local amount that they are asking and it has nothing to do with the school’s expenditures, Grant added.
    “The request comes to help the towns adjust for what we expect will be another difficult year next year,” said Grant. “But provide a little bit of time for the towns to be able to say we know this is coming, while it is being reduced it does provide the towns enough time to understand that while you are not paying the full commitment now, you will have to pay this amount if there is in increase in required local share for next year. I do fully expect there will be a significant increase next year. Be aware by doing this it is not a ‘get out of jail free card.’ We will, as a community, have to pay this amount in future years.”
    Asked what the school board felt comfortable with for a percentage reduction, Grant said, “It really comes down to what the taxpayers are comfortable with, as far as how much risk, they are willing to take for next year to be able to make that adjustment.”
    “Last year 17 to 20 school districts used that out because the cost was too much,” Freve said. “This year, it looks like about 60 added to the [other] school districts are going to use this vehicle. That in the legislature is powerful.”
    Freve said SAD 29 is not going to “pay back” the reduction cost but it will be assessed.
    “We are starting 12 percent in the hole,” he said. “The evaluation is two years behind. Our evaluation in SAD 29 has gone up. The word at the state level is that the state average has gone down. It’s a negative number.”
    Property in southern Maine is declining so property valuations are going down, Freve explained.
    “That means, if we are not in tune with the state, hold on to your pocket book,” he said. “It isn’t by the number of students by the way, our assessment and our local cost is dependent on two things – what the state mil rate is and what the state evaluation is — no one either on the council or certainly this board has ever said a 15 percent increase in local property is palatable. The board has to look at the education needs and also what the taxpayer can provide.”
    The Houlton Town Council was recently audited and learned its fund balance [surplus] is significantly lower than what it should be.
    “We’ve had the flexibility of using the fund balance to reduce taxes,” said Tortello.
    That is not the case this year.
    “We do not have enough money in the fund balance in order to have that luxury,” she explained. “It is important for the town of Houlton to keep our expenses as low as possible.”
    Tortello felt if the required local share was reduced this year, the town would have enough time to meet its expenses or go below.
    “We hope to raise our revenue and we are also going to have fair warning that if the cliff comes, it’s not going to hit us like it did this year,” she said. “We were fortunate. We can better prepare and we will be in a better financial position in order to do that.”
    Before going to a vote, Phil Bernaiche spoke to the board members about being displeased with what he saw within the budget.
    “You can’t all sit there and tell me that you did 100 percent for the public,” he said. “For the people who pay taxes here, the elderly, for the people not working. I am just saying what I think. Two or three years down the line, it might be different. The economy might all turn around and it might be good. Right now, we have to think of today not 10 years from now. I think as I look at this, I have all kinds of things to say, but I am going to be truthful with the directors that we have to do the best. You guys are overloading the budget, paying people more money and they shouldn’t be taking it.”
    Freve replied to Bernaiche, “You have a right to your opinion and I respect that. But, when you say this school committee did not take a 100 percent interest in the taxpayer, I hope you are absolutely correct. I hope they did not take a 100 percent in the taxpayer’s interest because we are running a school system for kids. I hope they are running for the education of the kids. And, what I have seen in my short tenure here, we are really moving forward. Their responsibility lies to both parties, not 100 percent to either one, and the town council has the same problem the school committee does. We have to take care of the taxpayer and the educators and I think this committee have done a great job.”
    The first article to draw speculation was Article 5, which sets money aside for an Elementary Guidance Counselor to be used at a time when deemed necessary.
    “The position has not been officially created,” Freve said. “It was placed in the budget because of the significant support. There was a compelling argument for it and the board said we need to look at it. Because we have not had a full dialogue on it that is why [the position] was put it in the budget. The board is committed to looking at the request.”
    An Elementary Guidance Counselor would serve K-8 grades, which includes Houlton Southside, Houlton Elementary and Wellington schools.
    A motion was made to amend the article to reflect $65,000 less or $895,649.76. When asked why she wanted it removed, the person responded, “Maybe it won’t lower the entire budget, but it is a matter of principle. We’ve got to cut something and we don’t even have a position [yet] for that.”
    Another person inquired about using a licensed clinical social worker instead of a guidance counselor.
    “We have more flexibility under a person who has a guidance counselor certificate than a licensed social worker,” said Freve.
    It was brought to the attention of the audience that the school district is required to comply with a relatively new state initiative called “Response to Intervention,” which means educators need to be prepared to meet the needs of students not only academically, but behaviorally, as well.”
    The motion to reduce the amount was turned down.
    “We believe our students are coming from a different perspective than they have in the past,” Freve explained. “We need to provide guidance services at an earlier, earlier stage. When we look at students and how they are coming to us, how they fit in and how we provide the need, it hampers instruction if the student comes with baggage that we don’t address.”