SAD 29 approves $12,499,244 plan

By Joseph Cyr
Staff Writer
    HOULTON — A bleak economic picture was painted by SAD 29 officials May 3 as the district’s finance committee met with town officials to discuss the potential impact of the 2012-13 school budget.
    As presented, the SAD 29 budget for 2012-13 will be $12,499,244, which is an increase in spending of about $411,177 (3.4 percent) over the previous year.
    The school board approved the budget last Monday. A public hearing will be held on Thursday at 6:30 p.m. at the Houlton High School auditorium. The district plans to send the budget to a public referendum on June 12.
    “The finance committee has been hard at work going over this budget,” SAD 29 Superintendent Mike Hammer said. “Our goal this year was to come up with a budget that had no additional local (contributions).”
    On May 3, the finance committee met with Houlton’s town manager and several councilors, as well as selectmen from Littleton, Monticello and Hammond to discuss the budget.
    Houlton Town Councilor Rob Hannigan asked the board how much money they have held in reserve and wondered if more could be applied to the 2012-13 budget. To help lessen the impact, the district plans to take $419,548 from its undesignated fund balance and will also have a carry forward of about $343,343 from money budgeted, but not spent in 2011-12. Even with the inclusion of those funds, an increase to taxpayers is likely.
    Hammer said there is a general misconception that the district had a large amount of money held in a surplus account. He stated that simply was not the case and by taking money out of that account for the past three years has depleted that reserve considerably.
    If approved by voters, the budget would almost assuredly result in a tax increase for each of its member communities, unless the municipalities found some way to cut their expenses in order to offset the school increase. Houlton’s share of the required local effort and Adult Ed costs would be $2,215,030, an increase of $328,382 (17.4 percent) over last year.
    Littleton’s share of the budget will be $418,466, an increase of $67,476 (19.2 percent). Monticello’s share will be $331,723, an increase of $61,723 (22.7 percent). Hammond’s share would be $52,665, an increase of $9,892 (23.1 percent).
    The idea of meeting with town officials before the budget was finalized stemmed from several members of the finance committee wanting to increase “transparency” of the school board’s work, while also trying to muster support for the spending plan.
    The May 3 meeting was the second time in the past two weeks that school directors have met with town councilors and selectmen to discuss the budget and its potential impact to taxpayers.
    Last year, the district took advantage of a clause in the state funding formula, which allowed it to reduce its required local share of the budget, while still getting the full amount of state funding. While that option exists again this year, Fred Grant, chairman of the finance committee, said he was reluctant to have the district go this route a second time as it was only setting the district up for an even bigger spike next year.