LIVERMORE FALLS – Strategic planning and some consolidated cost-saving proposals still under negotiation are expected to deliver a reduction in local education spending to SAD 36 taxpayers.
Superintendent Terry Despres unveiled his proposed $8.19 spending package for 2005-06 on Tuesday.
Although the plan is $239,574 more than last year, or a 3 percent increase, Despres said, Livermore’s and Livermore Falls’ school assessments are estimated at $3.27 million, $202,331 less than last year’s.
Major reasons for increases are health insurance, estimated to rise $141,300; salaries, up by $245,500; and utilities, estimated to increase by $65,400.
However, the district has cushioned this impact by making reductions in administrative costs and major projects by $212,626, Despres said.
SAD 36 has concentrated on keeping the dollars in the classroom, he said.
The proposal also continues to pay down a food service debt owed on paper to the district, which accumulated over years, by $86,000. The debt was about $200,000 last year and voters agreed to raise $50,000 to reduce it. The budget proposal also covers SAD 36’s share of the adult education program at $91,760, which is about a $6,200 decrease over this year.
The tax rate will be reduced with the enactment of the state’s Essential Programs and Services school funding model, which will be phased in over four years with the governor’s proposal.
As superintendent, Despres said he would advance a four-year plan to bring the district’s communities a tax rate reduction.
“Fortunately, MSAD 36 has been moving to align itself with Essential Programs and Services over the last three years,” Despres said. “For this reason, MSAD 36 avoided the misfortune that 85 school districts now face with receiving less state funding than they currently receive for this current school year, 2004-05. In addition, over 200 school districts are reporting that they will not be able to produce local tax rate reduction due to the nature of state funding at 84 percent of EPS rates.”
There are 287 school systems in Maine.
An analysis of the district’s comparison to the state’s projected funding service model shows that the district is under the model’s proposed spending, or very close to it, in the majority of the budget areas. Three areas that show wide margins are co-curricular and extracurricular, substitute and benefits spending.
More work needs to be done at the state level concerning those categories, Despres said.
In its 2004-05 budget, the district has allotted $141,125 for co-curricular and extracurricular spending, which includes sports. The state proposes $50,161 be spent. The state’s funding model only allows for $28 per student at lower levels and $97 for each student at the upper levels.
In the substitute category, the district has budgeted $67,000 for the existing year and the state is indicating that only $32,674 is needed.
One long-term substitute could use up a majority of that amount, Despres said.
The district budgeted nearly $1.03 million in the existing budget for benefits, while the state is saying $692,357 should be enough.
Each year, school districts are hit with double-digit increases in health insurance premiums, Despres said.
Some areas of targeted funding under the state’s model that will benefit the district are assessment, technology and pupils in kindergarten through second grade.
SAD 36 directors will meet four times in April to review the proposed budget.
Comments are no longer available on this story