Overview: The 2015-16 spending plan for RSU 2

RICHMOND

Regional School Unit 2 Superintendent Virgel Hammonds says out of the $553,624 or 2 percent increase included in the proposed $25.9 million spending plan for the school district in 2015-16 — all but $20,000 of that increase has been dictated by projected state funding levels.

Of that proposed $553,624, Richmond would see a projected $137,363 increase in the local share of education costs. That would result in a tax bill increase of $100 for a home assessed at $200,000. Dresden would see an increase of $53,542; Farmingdale an increase of $97,612; Hallowell of $124,857 and Monmouth an increase in local costs of $244,276. For a home assessed at $200,000 the tax bill would increase an estimated $60 in Dresden, increase by $100 in Farmingdale and by approximately $120 in Hallowell and Monmouth.

Only a reporter and a member of Richmond’s budget committee showed up to a public budget meeting held at Richmond High School Tuesday night to hear a presentation on the budget, greatly outnumbered by RSU 2 administrators who came prepared to answer questions.

Hammonds said the state is requiring the RSU communities to collectively raise $443,943 more in local money to qualify for an $88,444 reduction in state subsidy, “and so for us, before we even start the process, we’re $532,387 in the hole.”

He said of the proposed spending plan that “we kept it with $20,000 of what the state did to us, which we’re really proud of.”

When the RSU consolidated in 2019-10, the foundation allocation issued by the state — how much the district communities must raise locally to qualify for state subsidy —was 6.69 mils or $7.8 million and is up to 8.48 mils in 2015-16 which calculates to $10.4 million.

In the first few years of RSU 2, although the spending plans were reduced, the taxes still went up in the member towns because this foundation allocation increased, Hammonds said. Richmond will be required to raise $2.25 million locally to qualify for subsidy. Dresden must raise $1.2 million, Farmingdale $1.6 million, Hallowell $2 million and Monmouth must raise $3.3 million locally to qualify for state subsidy.

Hammonds showed the increasing gap between state revenue and the money the state requires communities to raise locally. The state revenue has decreased $3.39 million or 24 percent since 2009 while the local share of education funding has increased $3.6 million or 35 percent since 2009. The RSU 2 total budget has increased $1.38 million or 5.5 percent since 2009.

RSU 2 has budgeted an additional $300,000 in MaineCare seed money. Hammonds said in the past, when students required special services that qualify for some federal contributions to MaineCare, the state would collect those federal refunds and those costs would be reduced in all schools collectively, “with the idea that we’re all paying for all Maine students.”

However two years ago the state decided to have school districts pay for their own expenditures and have those districts contribute MaineCare Seed money. Federally, the RSU is required to locally raise 38 percent of the total cost of outside services and the reimbursement goes back to the state. This funding shift makes sense, Hammonds said, but there was no transition and “we just ripped the Band- Aid off and did it.”

Also implemented two years ago, RSU 2 is now paying the state’s portion of teacher retirement contributions. The teacher retirement contribution as mandated by the state is increasing from 2.65 percent to 3.36 percent — which is an increase of $103,000. RSU 2 has budgeted $437,311 for the state share of teacher retirement.

Included in the proposed 2015-16 spending plan are 1.4 full-time equivalent positions, making five part-time positions whole, at a cost of $87,000. This includes an additional day of counseling at Marcia Buker School in Richmond; an additional day of art at Hall-Dale Elementary; an additional day of art at Dresden Elementary; an additional day of a library technician at Dresden Elementary; half a music position at Hall-Dale High School; and half a math position at Monmouth Middle School.

There is also an additional $54,000 budgeted for extracurricular and cocurricular activities. Other increases include $13,450 for bond projects; $50,000 for the Monmouth school project and $115,000 for capital improvement projects. This work would include a natural gas boiler conversion at Richmond Middle/High School, roof repairs and drainage and access improvements at the Richmond athletic fields.

There is also a $646,902 increase in contract and health benefit obligations but the district found a total of $633,000 in reductions — $98,000 in energy savings; $65,000 from a retiring teacher position not being filled; $30,000 in transportation savings; and a $430,000 credit from the state because RSU 2 overpaid into teacher retirement for 15 years for 10 individuals.

Hammonds noted if the general purpose aid is increased by $25 million or $40 million as has been proposed in the Legislature, it would halve the proposed RSU 2 spending increase or offset the entire increase, respectively.

Hammonds plans to have a budget presentation posted online at the end of the week. There is a presentation tonight at Dresden Elementary School at 6 p.m. and another Thursday at Hall-Dale High School at 6 p.m. The regional budget hearing is June 1 at 6 p.m. at Richmond High School followed by the referendum vote June 9.

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