Voters in South Berwick and Eliot are set to decide on a $40.6 million budget for MSAD 35 in a referendum vote on June 9. The budget reflects an overall 3.95% tax hike, much lower than other districts in York County. 

For each municipality, Eliot residents can expect a tax impact of 1.43%, compared to South Berwick’s 6.8% increase.

Here’s a look at what’s contributing to the increased costs, and what the district will use the money for.

Budget changes reflect statewide trends

Interim Superintendent Heidi Early-Hersey said the district’s biggest cost drivers were threefold this year.

Salaries and benefits make up the biggest chunk of the total budget , usually because of anticipated raises. Marshwood reserves around 85% of its total budget for salaries and benefits for teachers, support staff and administrators.

Officials noted that benefits increases contributed significantly to the rise in costs this year. Marshwood’s health insurance rates increased by 8.7%.

“In the previous three years or so, we’ve been somewhere between 0% and 3%, so that’s a pretty significant jump for us this year,” Early-Hersey said.

The special education cost center will also grow significantly if approved by voters. Maine ranks second in the nation in the rate of students in special education, and Marshwood’s enrollment has grown nearly 10% in the last two years. The district’s overall special education enrollment falls between 15-17%, with a total of 370 students expected for the upcoming school year.

The new budget reflects an 8.6% increase from last year’s $7.3 million for special education, including a 13.6% jump for the special resources classroom.

“We’ve just had a shift in our population with some more high-need special education students moving in,” Early-Hersey said. “That does require us to have to hire some additional educational technicians to support them.”

The district plans to spend $400,000 on additional support staff, but is reducing other costs to balance it out. 

The transportation budget will shrink by roughly 3%, mainly because of a nationwide bus driver shortage. With fewer bus runs, Marshwood will save around $100,000, School Board Chair Joe Long said.

Early-Hersey also noted that lower enrollment statewide has led to a few staffing cuts, including two full-time positions at Central Elementary and two part-time positions at Marshwood High School. 

South Berwick will contribute less, despite higher enrollment

Of the total budget, $22.5 million will be raised in local property tax revenues, which are appropriated as each municipality’s required contribution. 

Eliot’s required local contribution will be $11.7 million, while South Berwick will appropriate $10.8 million if the budget is approved by voters.

The state determines how much towns must raise on their own in order to receive state subsidies, called the Essential Programs and Services formula. 

The average state EPS subsidy is 55% in Maine, and is based on town valuations. A 2007 referendum question specific to Eliot and South Berwick set a modified formula, which resulted in the district receiving closer to a 50% subsidy from the state, Long said. 

The other half of the cost for MSAD 35 is split between Eliot and South Berwick, determined by each town’s valuation and student enrollment.

MSAD 35 averages 2,097 K-12 students across the district’s five schools. As of last October, Eliot’s two-year enrollment average was 845, compared to South Berwick’s 1,065.

But South Berwick’s required local contribution is lower because its total valuation is $181.7 million less than Eliot’s. With a smaller tax base, South Berwick is responsible for a smaller share of Marshwood’s budget.

Long said the difference between each town’s contribution is actually smaller than it has been in the last five years because South Berwick recently launched a town revaluation project. 

“Eliot is entering into another revaluation process starting next year, which means we expect that will open (the difference) back up again,” Long said.

School board’s additions aim to remove barriers

The increases in elementary extracurriculars and inter-school athletics saw one of the biggest hikes in the district’s budget. The entire extracurricular budget will go up by roughly 10%, totaling almost $1.3 million if approved by voters. The elementary extracurriculars budget will see a 26.5% increase for a total of about $170,000 .

Long said the district has added a number of activities for students in recent years, including more sports teams. Early-Hersey added that student participation in volleyball and soccer may warrant additional squads.

During the budget workshop process, the board suggested setting more money aside for extracurriculars.

“One of the things that’s a huge priority for our school board is that kids don’t get turned away from programs and that we have as many after-school activities available for kids as want to participate,” Early-Hersey said. 

The district intends to use unreserved funds in the event that participation is even higher than anticipated. For example, if the middle school has an inordinate number of kids going out for soccer, the district can add another section of the sport, Early-Hersey said.

Another school board recommendation during budget workshops was an Advanced Placement testing fund. Every exam is $100, and usually is an out-of-pocket cost for students.

“They are a real equity issue for some students,” Early-Hersey said. Some decide not to take the exam, and in some cases, avoid taking AP classes because their families cannot afford the test fees.

The board wanted to remove that barrier, and suggested setting aside $30,000 to support the cost.

“We’ve crafted a budget that is fiscally conservative, but still supports growth,” Early-Hersey said.