As the state increases its share of local education costs to 50 percent this year, several area schools will receive more state aid while others will see a significant cut.
According to preliminary estimates released last week, Windham and SAD 6 will realize $1.46 million and $1.97 million more in state aid respectively for 2006-2007. Conversely, for the second year in a row, SAD 61 (Naples, Casco, Sebago and Bridgton) will suffer the largest state subsidy loss in the state.
The state covered the district’s entire loss in state aid ($1.3 million) last year with “transitional money.” This year, with the state withholding nearly $1.3 million again, the state is only cushioning the shortfall with $547,661, bringing the true loss to SAD 61 to $712,435.
The fluctuating state aid is part of the state’s new Essential Programs and Services (EPS) funding formula, a formula created to strike the balance between local education needs and local tax burden. The intent, through LD 1 tax reform legislation, is to raise state aid according to the formula in hopes of lessening the burden on local taxpayers.
In response to the loss in state aid and voters’ refusal to approve the district budget last spring, SAD 61 – which includes Lake Region High School, Lake Region Middle School and four elementary schools – was forced to trim bus schedules and stops, lay off teachers and custodians, and eliminate all freshman sports.
But even last year’s cuts (totaling roughly $800,000) won’t cover the shortfall, says Frank Gorham, the new superintendent of SAD 61.
“I think what hurt us were the state’s evaluations (of area properties),” Gorham said. “Certainly when you have to raise more money locally, it’s going to be difficult.”
James Rier of the state Department of Education attributes the loss in state aid to a dramatic increase (totaling $295 million) in property values in the towns included in SAD 61, especially along the lakefront.
“These dramatic increases in valuation are causing the loss in state subsidy, not the EPS formula.” Rier said. “The growth in those communities has far outpaced others and it is what is pulling the state average higher.”
While pleased to see the state’s commitment to funding education in neighboring communities, Sen. Bill Diamond is concerned about the impact such a loss in state aid will have on SAD 61. He is currently in talks with the legislative educational committee and state education officials to find a solution to the problem.
“It’s a serious problem and we’re going to look at ways to help from them from this serious hit,” Diamond said. “(SAD 61) just can’t be asked to shoulder that kind of a reduction.”
When calculating how much state subsidy a school district receives, the cost of education is weighed against the state evaluation of taxable property. Rier contends that under the old education formula, the district would have seen a similar reduction in subsidy.
Nearly one fourth of the school districts lost state subsidy this year with losses ranging from $3.20 (for Magalloway Plantation District) to SAD 61’s $712,000. More suburban areas were the big winners in the educational funding with Lewiston topping the list with $2.6 million more this year.
These communities will realize the bulk of $79 million in additional state money put toward education for fiscal year 2006-2007. This additional $79 million brings the total state subsidy for local education to more than $900 million and includes a supplement to raise teachers’ salaries to a minimum of $30,000.
Windham school district will receive $1.46 million more and this money will help pay for the higher cost of fuel, says superintendent Sandy Prince.
Prince has yet to receive the official notice of how much state money the district will be given. However, the school subsidy does not help pay for special education and extracurricular expenses, he noted.
“The jury’s not in yet (on EPS funding),” Prince said. “But we certainly appreciate that they have made a good attempt to fund our schools.”
In order for SAD 6 to receive its additional $1.97 million in state aid, the school district must raise its local share by $625,000, says superintendent Suzanne Lukas. She is concerned about renewed discussion that 90 percent of the additional school subsidy would be used for tax relief leaving only 10 percent to be put toward education.
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