With a steep decline in enrollment, Regional School Unit 16 in Poland will likely receive fewer dollars in state subsidy for the following school year.

Compounding the anticipated budget woes are rising property values, which will also lower state aid, and an expected 12% increase in insurance costs.

That sobering message was delivered to the RSU 16 board last week by Superintendent Amy Hediger.

As of Oct. 1, enrollment figures have dropped by 53 students, Hediger said — an approximately 10% drop at the schools in Poland, Minot and Mechanic Falls.

Property values are also increasing, especially in Poland.

The three-year average for state valuations for Poland rose roughly 18% from $878.6 million to $1.04 billion from 2025 to 2026. Hediger expects property values to continue to rise, which according to the state education funding formula would mean less in state subsidy for the district.

“In the eyes of the state, it means the taxpayers can pay more,” Hediger said. “Although that is not true for our taxpayers. So there’s some trepidation during the upcoming budget season that it will be a difficult one as we look at decrease enrollment as well as the valuation.”

Property values are also increasing in Minot and Mechanic Falls, but not as steep as in Poland.

“How much each town must raise to receive state subsidy is related to the valuation of the town,” Hediger said. “Poland was valued over $1 billion, so in the eyes of the state that means they can pay more. Our board and district know that since COVID, property values in our tri-towns have skyrocketed, yet paychecks of our taxpayers have not. 

“So when the funding formula relies on property values as the indicator of the town’s ability to pay, it is unfair because a town with high property values isn’t necessarily wealthy in terms of residents’ actual ability to contribute.”

Another troubling area applying pressure on next year’s budget is the school’s insurance premiums, which are expected to rise by at least 12%.

“Right now, we are looking at potentially 12% increase in our insurance,” Hediger said. “So right off the bat, that’s $509,000 increase from last year’s insurance rates.”