Schools could face funding cuts

School districts across Maine received an unwelcome late holiday “gift” Thursday when Gov. Paul LePage issued an executive order to reduce state spending by $35.5 million in the current fiscal year, which ends June 30, 2013.
    The order, called a curtailment, helps to ensure that the state finishes the fiscal year with a balanced budget, which is required by the Maine Constitution. Included in the $35.5 million in cuts are reductions of $12.58 million from the state’s education funding.
Under Maine law, the governor has the authority to reduce spending on programs approved by the Legislature with a curtailment order, subject to certain restrictions. The curtailment order serves to reduce the rate of spending until a supplemental budget is proposed by the governor and passed by the legislature to address the predicted revenue shortfall in a comprehensive manner. The curtailment order applies only to the current fiscal year.
“Unlike the federal government, Maine must balance its budget and we can achieve this for the short-term under this curtailment,” said Gov. LePage. “However, in order for the state to sustain a balanced budget for the long-term, Democrats and Republicans must acknowledge that from year to year we have only put a Band-Aid on the problem. Not unlike Washington, we must rein in spending before Maine falls off its own fiscal cliff.”
The Governor notified the president of the Senate, the Speaker of the House and the majority and minority leaders of the Senate and House of the specific allotments curtailed, the extent of curtailment of each allotment and the effect of each curtailment on the objects and purposes of the program affected.
“(The) curtailment order is temporary, and will be followed by further legislative action in the form of a supplemental budget in January, to make reductions to the current fiscal year budget,” said Stephen Bowen, Maine’s education commissioner. “With the fiscal year at its midpoint, if we were not to address this now it would become increasingly challenging to achieve the reductions required to balance the budget. The curtailment order will help schools make plans. However, it is important to remember that by the Governor’s introduction of a supplemental budget in January there may be further action.”
So what do the cuts mean for local school districts?
SAD 29 (Houlton, Littleton, Monticello and Hammond) would lose $42,196 if the curtailment plan goes into effect as presented by the Governor. SAD 70 (Amity, Cary, Haynesville, Hodgdon, Linneus, Ludlow and New Limerick) stands to lose $19,393; SAD 14 (Danforth and Weston) is looking at a $6,132.50 cut; and RSU 50 (Southern Aroostook and Katahdin) is eyeing a $30,613 reduction.
“We will most likely cut down our balance left over or take out our contingency fund first,” said SAD 29 Superintendent Mike Hammer. “If we had a catastrophe, we would hold onto some assessment money and technology, although we are sitting on some of that money for the new roll out for the laptop program.”
“Once the Legislature convenes and examines the entire financial and budgetary challenges, it is not possible to say whether this curtailment will stand, if it will be increased, or some other action may occur,” added Houlton Town Manager Eugene Conlogue.
All of the area school departments are expected to review the curtailment plan at their regular monthly meetings in January. SAD 29 meets Monday, Jan. 7, while SAD 70 and RSU 50 meet Monday, Jan. 14.
As a way to reduce spending immediately, previous Maine governors have utilized the curtailment process. Recent curtailments totaled more than $180 million between the years 2008-10.
Bowen stressed school districts would not see reductions in monthly subsidy checks at this time.    “However, you (districts) should act with the understanding that the total GPA for FY 2013 will likely be reduced to the amounts indicated,” he said. “Once final reductions become enacted by the Legislature, the Department will proportionally reduce the remaining monthly checks for the fiscal year 2013 to achieve the reductions. I know this is a challenge for school districts already working hard to direct limited resources to student learning.”
RSU 50 Superintendent Larry Malone said he was uncertain what impact the curtailment would have on his district’s budget.
“We will need to wait and see what the legislature approves,” Malone said. “We currently have been operating under a ‘only essential expenditure’ framework, since the early discussion of curtailment. We, like many districts, have a very tight budget to work with and absorbing any loss of revenue is of concern. We will continue to monitor our expenditures and review the current budget status moving forward through the remainder of the fiscal year.”
SAD 70 Superintendent Bob McDaniel, who also serves as superintendent for SAD 14, could not be reached by presstime.