By Rick Wright

Staff Writer

Cape Elizabeth Superintendent Alan Hawkins told the school board last week his staff needs guidance preparing a budget for fiscal year 2011.

“We do not have a clear idea of where the board wants to be,” Hawkins said. 

When board members last week moved from discussing general guidance to specific targets such as academic programs, spending increases and tax rates, Board Chairman Rebecca Millett ruled the discussion out of order.

“We need to schedule a separate meeting to do targets. We will not discuss targets this evening,” Millett said.

Vice Chairman Katharine Ray said the board wasn’t prepared and it wasn’t on the agenda to discuss.

“The public doesn’t know about this,” said Ray.

Board Member David Hillman disagreed with Ray and Millett. 

“If (Hawkins) asks for guidance, we need to give it. The fact that it’s not on the agenda is irrelevant. Under state law, we approve the budget,” Hillman said.

By consensus, the board agreed to put the issue on the agenda for its finance committee meeting scheduled for 6:30 p.m. Feb. 23 in the high school library.   

John Christie, a board member, said he wants a budget that won’t cut academic programs. 

Hillman encouraged the superintendent to create three budget scenarios that would show effects of no increase, spending increases of 3 percent and 6 percent.

“We are looking at a $900,000 shortfall. What does that mean?” Hillman asked. “Next year it’s going to be worse. We used up our reserves this year.”

Board member Mary Townsend agreed with Hillman.

Hawkins cited salary increases, energy costs and special education expenses for the anticipated deficit next year.

“We’ve cut what we can cut. We are down to the bare bones. A few scenarios might be helpful,” she said.

The board unanimously approved Hawkins’ budget adjustments to offset a $940,000 deficit for the current school year.

The deficit was created by a mid-year state funding curtailment combined with increased expenses for special education and staff retirements.

Eight staff members retired this year, according to Pauline Aportria, the school department’s business manager. Those retirees qualified for one-time payouts totaling $150,000. The school department did not budget for this expense, Aportria said.

Hawkins bridged the gap without affecting academic programs. He implemented several measures, including using surpluses, transferring Medicaid reimbursements and implementing a spending freeze on supplies, books and staff development.

“I did have to freeze the budget this year in order to make things work,” Hawkins said. “I look at every PO (purchase order) personally. I approve those that are necessary.”

In his budget update for fiscal year 2011, which starts July 1, Hawkins predicted similar financial challenges.

Hawkins said he was relieved the state’s funding reduction for next year would be approximately $40,000 instead of the $900,000 he expected. 

The drop came because Cape Elizabeth property values declined by 6 percent, Aportria said. The state’s funding formula is based on property values and enrollment.

Hawkins said he expects a final vote on the budget by the school board on April 14. The town validation vote is scheduled for June 8.

If Cape Elizabeth residents reject the school budget in June, the school board will have to revise it and send it to voters again until it is approved, Hawkins said.

Rick Wright can be reached at 282-4337, ext. 237 or news@inthesentry.com.