Budget Update #5

Budget Update #5 – RSU #38 School Board Budget Meeting, March 16, 2016

To view the video of the budget workshop, as well as all supporting materials, please go to http://www.maranacook.org/budget

“Promoting student success for all while maintaining fiscal responsibility”

On March 9, 2016 the House and Senate overwhelmingly passed a bill that would send $15 million in additional aid to schools for FY17 and set up a commission to recommend changes to public education funds and ways to improve student performance. The vote in the House was 131 to 8, and the vote passed unanimous in the Senate. The additional funding reduces the mill rate required by the state from the initial 8.44 to 8.3. Version 2 Draft Budget Revenue Sheet shows the increased allocation, from $3,281,138, our original FY17 allocation to $3,394,830. While the increase of $113,692 is appreciated we were hoping to recover more of our $400,000 loss with this action.

At the last RSU #38 budget meeting the Board voted to approve the $84,389 in proposed budget cuts that were suggested by the RSU #38 administration as noted in Version 2 General Fund Budget. A list of Budget Increases, Budget Decreases, and New Requests that have been Eliminated or Reduced are available on the Summary Budget Changes. This reduction amount and the additional subsidy amount of $113,692 are included in the Version 2 Draft Budget Revenue Sheet as well as the Version 2 Local Dollar Calculation. The required local contribution at this time is $8,156,483, a decrease from the last projection of $8,270,174. The resulting district average is a 5.12% increase over FY16, down from the last projection of a 6.82% increase over FY16.

We are still waiting for the notification of our health insurance increase. Today we received word that we would be notified by April 1. We are hoping that our rating will result in a decrease to our expenditure budget.

As RSU #38 School Board member Steve Hayes pointed out, we started the FY17 budget process with an expenditure budget increase of $997,864, up 6% over FY16. We are down to an increase of $511,381.94, a 3.2% increase from FY16. Approximately $232,000 of that increase is designated to negotiated staff contracts and benefits, and $220,834 to an increase in building projects, for example, roof restoration projects that must be completed in order to preserve our buildings.

The next RSU #38 Budget Deliberation Meeting will be held on March 23, 2016 at 6:30 at Maranacook Community High School. We urge all community members to attend.


Donna H. Wolfrom, Ed.D.

Superintendent of Schools