A “worst case” draft budget for 2014-2015 for a possible new Andover school unit totals just over $1 million, residents learned at a public hearing last week.

The town will vote Jan. 7 on whether to withdraw from SAD 44.

Selectboard Chair Susan Merrow, who is also a member of the Andover Withdrawal Committee, said Monday there is a base amount that all districts pay toward their budget to qualify for state funding.

“Andover’s number is $823,000 this year,” she said. “It changes annually and is set by the state. So Andover can count on paying $823,000 in the first year – 2014-15. After this number, the state contributes its share. Our superintendent consultant, Jack Turcotte, was asked to estimate a ‘worst case’ draft budget using conventional education practices. His number was $1,023,737.”

For the current school year as a member of SAD 44, Andover is paying $634,601 (including $140,000 to keep the town’s elementary school open for the year), according to SAD 44.

Merrow said that in preparing his worst-case budget, Turcotte “worked to be very generous with all accounts, and this also allowed for extra tuition students at the middle school and high school, a security camera system on the buses, extra election money, and even two copiers. The school only has one. So we felt comfortable that he did due diligence, and the new school board would have something to work from to reduce while protecting voters by estimating generously.

“If Andover’s child population continues to decline, then Andover taxpayers would see the school budget go down drastically,” she said. “We would have the option to tuition all children, if needed. The point is there would be options.”

Andover would also have to come with $235,400 in additional startup costs for a new school unit,  Merrow said. She said selectmen will propose a bond to cover the cost and cash flow during the first months.

She said there has also been discussion about possibly using part of the town’s Comsat Trust Fund to offset costs.

“To do that it would have to go to referendum with a 2/3 vote approval,” she said.

Selectmen were scheduled to discuss an amount for a bond at their meeting this week.

Merrow also said if Andover voters approve withdrawing from SAD 44, “residents wouldn’t see that much of an impact this tax year, since half of the year is the current SAD44 payment. They could see a bigger jump in the 2015 tax year. By that time the new school board would be able to implement cost-saving ideas and revenue generating ideas.” 

The school and town fiscal years are staggered by six months.

About 70 people attended last week’s public hearing, according to town officials.

Online debate

In the wake of the meeting some residents took to the Andover Withdrawal Committee’s Facebook page to discuss the issues.

Supporters of withdrawal have argued that keeping the town’s elementary school open is critical to keeping and bringing people and business into town, as well as maintaining a strong real estate market.

But others in the online discussion thought a potential large tax hike caused by withdrawal would drive people and business away.

Withdrawal supporters, however, said that staying in the district would also likely result in significant tax increases over time. They also said if Newry, which pays a large share of the SAD 44 budget, were to withdraw from the district the other towns would take on a heavier tax burden.

Some commenters also expressed concern that by withdrawing the town would lose its current vote on the SAD 44 School Board and thus its say in how Andover students in grades 6-12 are educated. Under the withdrawal plan, those students would be tuitioned to schools in the region.

But others countered an Andover school board would do a better job of making decisions for its elementary school than the SAD 44 board would.

Another hearing planned

Another public hearing to discuss the merits of withdrawal will take place Saturday, Jan. 4. Polling hours for the Jan. 7 vote will be 10 a.m. to 8 p.m.

Merrow said there is also a question on the ballot asking if voters want to increase the number of members on a potential new school board from three to five.

If the vote to withdraw is approved by a 2/3 majority, an election for school board members will take place Jan. 28.

Withdrawal would be effective June 30, 2014.