No special town meeting needed for school's use of money

JAY — There will be no special town meeting to vote on how school funds are used because it's too late and it's not necessary, the School Department attorney advised this week.

Voters were to decide this month if they wanted the School Department to use the $216,000, which they approved moving from the town undesignated revenue account to the school general fund last year, to offset the penalty assessed for not complying with the state's school consolidation law.

School Department attorney Daniel Stockford said the decision would have had to have been made within 15 days of final approval of the budget last spring. Also, he said, because there was no condition attached to the transfer regarding a specific amount of state subsidy, there is no need for the town to reauthorize the transfer. Stockford's written opinion to Superintendent Robert Wall was dated Tuesday.

"Although we understand that the $216,000 transfer from the town fund balance to the School Department's general fund initially as needed to make up for approximately $200,000 in penalties imposed under Maine's school consolidation law that were later repealed, the state recently announced that it intends to cut funding for the Jay School Department in FY 2010 by approximately $468,000, more than twice the original amount of the penalty. Thus, the transfer funds that were unconditionally approved by voters at town meeting are now more necessary to fund the other school budget articles," Stockford wrote.

It appears that since the money was transferred to the school, it is up to the School Committee what they want to do with it. The bottom line is the money is still factored into the the School Department revenue, Stockford said.

Even if Maine law permitted reconsideration, he said, it would have to follow the two-step process of a town meeting vote and then a validation referendum.

Town Manager Ruth Cushman said Wednesday that she called the Maine Municipal Association and got the same opinion that Stockford gave Wall.

Jay voters approved a $9.7 million budget for 2009-10, which included the eventual $216,000 transfer. Even with that money, there is still a shortfall of about $268,000 in this year's budget, Wall said. He estimated the state revenue loss at $484,389.72.

"We still received a reduction in (state) subsidy. We still were penalized," he said.

Selectmen will hold a special meeting at 6:30 p.m. Monday, Feb. 8, at the town office, to discuss the matter.

dperry@sunjournal.com