The York Ambulance Association is requesting a funding boost that would more than double the town of York’s annual contribution and will likely require a special referendum.

York Ambulance is asking the select board for $180,000 that it says would help sustain operations through the last year of its three-year contract with the town, which expires in June 2027.

The town contributes $150,000 annually to York Ambulance, an independent nonprofit organization. That amount was decided two years ago and was maintained in May when voters approved the municipal budget.

But because that budget’s now set, it complicates York Ambulance’s request and has town officials facing a critical question: Where will the funding boost come from? 

The approved municipal budget includes close to $1 million for each of the York Beach and York Village fire departments. Adjusting the emergency services line would mean taking a sizable chunk of funding from each station, but that’s not an option, Town Manager Peter Joseph said.

The select board has access to an unrestricted $100,000 contingency fund and has restricted spending discretion over an additional $200,000 to cover unanticipated expenses.

To use that restricted funding, the select board would need to determine there’s an emergency opportunity that was previously unknown. Then, final approval to spend the money would be sent to voters in a special budget referendum.

During a June 22 meeting where York Ambulance Chief Josh Allen laid out the details of the request, all five select board members expressed frustration that the issue was not brought up sooner. 

“It’s hard to see you guys were bleeding and said nothing,” member Marilyn McLaughlin told Allen. “I’m not sure there’s a hole here that you can dig yourself out of.”

Officials said they’ve known about the gap in funding since they negotiated the contract two years ago, but that they were told not to worry about it. Select board member Robert Palmer said the conversation should have happened back then.

Allen attributed the decision to wait to an overly optimistic outlook in past years. The association has historically been able to cover shortfalls through grant programs, memberships and charitable donations, he said, but those options can no longer keep up with economic pressures.

FUNDING SHORTFALLS

Allen called the additional funding an “operational ramp” that would help fill gaps in expenses, including three months of payroll. Rising insurance costs have struck EMS companies nationwide, he said, and service costs have also increased.

He told the select board at the June 22 meeting that the requested money would also provide the nonprofit security while it waits for federal reimbursements, which have been severely delayed.

York Ambulance’s revenue stream is about three months behind, Allen said. By the beginning of next year, it will be operating on this summer’s revenue. 

The organization hasn’t been profitable since 2021, when it finished the year with an excess of about $100,000.

Last year, York Ambulance raised $80,000 in donations and received a grant from the Maine EMS Stabilization Program. Still, the assistance isn’t enough for long-term sustainability.

Officials said the select board will have to come to a decision about the funding by sometime in the fall — likely November.

“The worst-case scenario, we would anticipate running out of funding December of 2026, January 2027,” Allen said.

York Ambulance is also trying to find solutions internally, Allen said: The organization recently increased memberships, created new ways to donate and is working on business sponsorship programs.

OTHER OPTIONS

The additional funding would solve a short-term issue, but York Ambulance would have to increase its annual request significantly if the town decides to renegotiate another three-year contract. 

The select board also has the option not to fund the request and provide ambulance service through another company, or to transition to an in-house operation.

Joseph emphasized that no matter what, York will have ambulance support.

In May, neighboring South Berwick decided to end its contract with York Ambulance — effective July 1 — and transition to an in-house service. Joseph said York following suit is not impossible, but it would be hard to pull off by the time the town’s contract expires.

South Berwick’s decision to cut ties with York Ambulance also came amid some complaints about poor service. Allen and Joseph agreed that the association has served York well but said switching to another service is an important consideration.

“I’m not saying that York Ambulance isn’t the best option moving forward,” Joseph said. “But I think we do need to make sure that we’ve turned over every stone. The budget committee, the voters, the select board, town staff will expect that we’ve looked at everything.”

Though the select board is not sure what its decision will be, officials say the referendum route looks likely. A final decision would need to be made in August to meet a 60-day requirement to make the November ballot.