POLAND — Regional School Unit 16 directors approved cuts amounting to $388,095 as they prepared a third budget proposal at Tuesday night’s special meeting.

Directors also learned that $500,000 from the fund balance will be used to lessen the tax impact on Mechanic Falls, Minot and Poland residents.

The proposed amount presented to voters will be $28.4 million. Less-than-anticipated salaries and benefits to new hires accounted for most of the cuts.

Business Manager Stacie Field told directors the $500,000 fund balance to be used to decrease tax impact was available because the district spent only $179,564 of the $1.5 million allocated from the fund balance for fiscal year 2024.

Field went on to say that each Maine school district needs to allocate at least 5% of its fund balance to each new budget. The fund balance is the money that isn’t spent from previous budget allocations. It was described as a kind of savings account to be used for emergency situations.

According to RSU 16 administration officials, the estimated tax impact of the proposed budget on a property valued at $100,000 would be $100 in Mechanic Falls, $76 in Minot and $136 in Poland.

Property tax bills have been sent out in the three towns. The education portion of those bills was based on one of the earlier, higher school budgets defeated at the polls.

Field said she understands that citizens can petition towns for amended tax bills if this lower budget passes.

A district budget meeting will be held Wednesday at 6 p.m. at Poland Regional High School for residents to approve or reject individual school warrant questions in a town meeting format.

The single-question validation referendum on the proposed budget will be held Tuesday, Sept. 17, at polling places in each town.

In other business, directors suspended the planned $10.2 million lease purchase agreement to update the HVAC systems in all three elementary schools as recommended by Superintendent Amy Hediger. She gave three reasons to suspend the agreement.

• The current budget situation facing RSU 16 and financial stability is the number one priority.

• The lease agreement caused a rift between the communities and RSU 16, and a bond referendum in which the voters have a direct say in the matter may be required instead.

• The scope of the HVAC problems need to be addressed more properly and accurately. It was pointed out that the $10.2 million figure was an estimate of the work that was needed, not a quote.