Despite potential cuts to federal funding for education, the RSU 12 Board of Directors is moving forward with a full $28.6 million budget proposal.
RSU 12 Superintendent Howie Tuttle said during the board’s Thursday, April 10 meeting that like many school districts across the country, RSU 12 is facing the possible loss of federal funding.
President Donald Trump signed an executive order he said would “eliminate” the U.S. Department of Education on March 20. The U.S. Department of Education, created by former President Jimmy Carter in 1979, administers federal funding for education nationwide. The Maine Department of Education, which received funds from the federal entity, distributes funds to Maine schools.
Following the RSU 12 board meeting, the U.S. Department of Education announced on Friday, April 11 that it would move to terminate the Maine Department of Education’s federal K-12 education funding, including formula and discretionary grants, due to the Maine Department of Education’s “continued refusal to comply with Title IX (policy),” according to ed.gov.
Federal education funding streams include Title I, which communities, and Individuals with Disabilities Education Act grants, which are intended to support early intervention and special education services.
RSU 12 receives about $2.5 million in federal funds through Title I, Tuttle said at the April 10 meeting, which helps pay for the district’s food service program, special education, a teacher, and a social worker.
Tuttle said although the discussion about federal funding for education is leaving many feeling uncertain, the district is proceeding with its full budget proposal.
“Who knows what will happen,” said Tuttle. “We haven’t necessarily planned for it … There could be no change at all. You hear this stuff, it makes you nervous, but at this point in time we’re just plowing forward as if we will get the same funds we always get.”
The total budget unanimously approved by the board during the April 10 meeting is $28,640,726.82, an increase of $1,406,229.84 or 5.16% from last year.
The district’s revenue is expected to total $12,529,210.64, a decrease of $46,828.89 or 0.37% from last year.
Although state subsidy is expected to be $11,434,503.64, an increase of $64,464.11 or 0.57% from last year, the funds being pulled from the district’s fund balance to relieve pressure on taxpayers is $700,000, a decrease of $40,000 or 5.41%.
Tuttle said state subsidy, which typically rises by about $300,000 each year, is likely being affected by an increase in property valuations throughout RSU 12, which consists of Alna, Chelsea, Palermo, Somerville, Westport Island, Whitefield, and Windsor.
The seven towns will contribute a total of $16,036,860.12 to the budget, an increase of $1,378,402.67 or 9.4% from last year.
Whitefield’s contribution totals $3,079,650.17, an increase of $286,435.39 or 10.25%; Alna’s contribution totals $1,309,635.55, an increase of $169,307.97 or 14.85%; Westport Island will contribute $1,053,265.28, an increase of $80,531.13 or 8.28%; and Somerville’s contribution is $765,780.25, an increase of $35,267 or 4.83%.
Windsor’s contribution is $4,172,064.09, an increase of $305,456.40 or 7.90%; Chelsea’s contribution is $3,212,938.29, an increase of $263,720.90 or 8.94%; and Palermo will contribute $2,443,526.49, an increase of $237,683.87 or 10.78%.
Tuttle said what he calls “controllable costs” in the budget – such as staff salary and benefits, energy and transportation costs, and capital improvement project funds – are expected to increase by $190,534.10.
“Uncontrollable costs” are also expected to rise, Tuttle said, with a possible $768,603.16 or 10.3% increase in tuition costs; a $460,000 increase in out-of-district placements, or children in RSU 12’s member towns who attend programs outside of the district; and a 14% increase to staff health insurance.
Other uncontrollable factors Tuttle said affect the budget are expenses associated with unfunded state mandates, such as the Maine Paid Family and Medical Leave Act.
In 2023, Gov. Janet Mills signed the creation of a paid family and medical leave program, making Maine the 13th state to establish one, according to maine.gov.
Beginning in 2026, eligible workers will have up to 12 weeks of paid time off available for circumstances such as caring for a family member with a serious illness or to care for their own medical needs. Employers and employees share the cost of the benefit through payroll taxes, which became effective on Jan. 1.
This will add roughly $50,000 to the budget, according to Tuttle.
Additionally, L.D. 974, “An Act to Establish Minimum Pay for Educational Technicians and Other School Support Staff,” is adding about $150,000 to the budget, Tuttle said, with the majority of the increase reflected in the special education budget. The bill, which advises a school administrative unit to set a minimum wage each year for educational technicians that is equal to 133% of the minimum wage established by the state, was passed to be enacted by the Maine House of Representatives in April 2024. The bill was shelved when the 131st Legislature concluded its business on May 10, however, Tuttle said the increase was incorporated into the proposed budget in the event a similar bill passes this session.
The regular instruction budget is $14,501,447.69, an increase of $553,644.06 or 3.97% from last year. Tuttle said this rise is due largely to high school tuition rates and insurance.
RSU 12 pays tuition for secondary students to attend high school, with most opting to attend Cony High School in Augusta, Erskine Academy in South China, and Lincoln Academy in Newcastle.
Independent schools and town academies, such as Lincoln Academy and Erskine Academy, can charge local students – known as the maximum allowable tuition – is calculated by the Maine Department of Education every January.
The 2024-2025 maximum allowable tuition set by the state is $14,080.88 per student, an increase of $780.76 or 5.87% from the previous year. The 2025-2026 maximum allowable tuition will be set in January 2026.
In addition, the Maine Department of Education raised the insured value factor, which is used to pay for building upkeep and critical maintenance, from being 6% of the maximum allowable tuition to 10%. Based on the 2024-2025 maximum allowable tuition, the insured value factor per student is $1,408.09, an increase of $610.08 or 76.45%.
The budget for special education totals $6,121,421.68, an increase of $784,684.21 or 14.70%.
Tuttle said part of the increase is due to recent proposed legislation, including L.D. 1152, “An Act to Make Long-term Disability Insurance Coverage Available to Public Employees,” which is adding about $20,000 to the budget, as well as L.D. 974.
L.D. 1152, which requires employers to provide long-term disability insurance coverage at their own expense to members of the Maine Public Employees Retirement System, was passed to be enacted by the Maine House of Representatives in May 2024. The bill was shelved when the 131st Legislature concluded its business on May 10.
Tuttle also said there is an abundance of students moving into the district or starting schooling in the district that need placement in special education programs outside of the district, increasing the special education budget by $390,000.
Additionally, Tuttle said there was a jump in the last year from 190 to 214 staff members who receive health insurance coverage, most of which are support staff members. Each person’s health insurance coverage costs about $10,000, he estimated.
The budget for transportation and buses is $1,803,083.62, an increase of $183,287.03 or 11.32%. This increase reflects a rise in salaries, insurance, and benefits. Despite the increase, Tuttle said the addition of two electric buses to the district is helping save money on fuel costs.
RSU 12 received two electric Thomas Built Buses from W.C. Cressey & Son through the U.S. Environmental Protection Agency’s Clean School Bus Program, which was started in 2022 and provided $5 billion worth of electric buses to schools across the country. The same year, the Maine Legislature passed a law mandating that 75% of new school buses bought or leased by 2035 be zero-emission vehicles.
The student and staff support budget totals $1,308,583.16, an increase of $76,121.84 or 6.18% from last year. This budget includes salaries, insurance, and benefits, as well as contracted social work services.
The school administration budget is $990,572.73, an increase of $41,831.06 or 4.41%.
The budget for debt service is $844,102.35, a decrease of $281,805.22 or 25.03%. Tuttle said this budget is down because the district has finished paying off the construction of Windsor Elementary School.
The facilities and maintenance budget totals $2,151,913.31, a decrease of $27,951.66 or 1.28%; the system administration budget is $761,943.88, an increase of $62,764.05 or 8.98%; and the other instruction budget totals $157,658.05, an increase of $13,654.12 or 9.48%.
RSU 12 voters will gather to voice their opinions on the budget at the district’s budget meeting, which is scheduled for 6:30 p.m. on Wednesday, May 21 at the Chelsea-Togus Elementary School.
The budget approved at the May 21 meeting will appear on the ballot in the budget validation referendum, which will take place Tuesday, June 10 at local polling locations.
The next meeting of the RSU 12 Board of Directors is at 6:30 p.m. on Thursday, May 8 at Chelsea-Togus Elementary School.
