OXFORD — By a unanimous vote Monday, the Oxford Hills School District approved a $231,000 cut to the 2010 fiscal year budget to offset a shortfall in state subsidies.

Earlier this year, the school board approved $512,287 in reductions, although the allocation of $500,000 in funds from the American Recovery and Reinvestment Act halted plans to eliminate seven staff positions and other items. Superintendent Mark Eastman said the second round of cuts is a result of the state increasing the expected curtailment of statewide funds from $27 million to $38 million.

The reductions affect a number of areas, including $15,000 cuts each to support staff and custodial budgets, a $10,000 cut to repairs and maintenance, a $25,000 cut to supplies and equipment, and a $50,000 reduction to a contingency account. A part-time educational technician position will also remain unfilled for $7,500 in savings.

The district’s Budget Committee has reported that the leases for netbooks purchased for students at the Oxford Hills Comprehensive High School were $30,000 less than projected. The committee is predicting a $30,000 loss in Medicaid revenue, but says further cuts might be necessary if federal regulations change significantly.

“What we are concerned about is, ‘Is that the last curtailment?'” asked Eastman. “And I don’t have a high comfort level that it is.”

Eastman said another $36 million curtailment is expected for the 2011 fiscal year. He said that the 2010 fiscal year budget will include $18.5 million in state funds and $1.4 million from stimulus funds. For the 2011 year, Eastman said he expects $17.5 million in state funds and $1 million from the Recovery Act, leaving an approximately $1.4 million gap between revenues and assessed taxes. He said the revenue gap is projected to increase to over $3 million in the 2012 fiscal year.

“This is scary. There’s no other way to say it,” Eastman said.

Eastman said that 78 percent of the budget goes to salaries and benefits, with the remaining money allocated to vocational services, utilities, and other items including supplies. He said the amount of money that could be allocated to salaries would be decreased to 68 percent in the 2012 fiscal year if the revenue gap is not remedied.

Eastman said possible strategies to reduce expenses include administrative restructuring, redesigning bus routes, a reduction in programs, and increasing class sizes. The district has already implemented some cost-saving measures, including freezes on field trips and hiring for nonessential staff positions.

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