Budget FAQs

 

 

 

 

 

 

 

 

• Please explain the RSU 24 budgeting process in a nutshell.  

The RSU 24 budget is built from the ground up.  In early September and October preliminary budget work, such as defining enrollment numbers and quote gathering, is begun in preparation for the busy budget season ahead.  Starting in November, administrators, teachers, and staff identify the personnel, items, and equipment, etc. that they need in order to run the educational system at their school [or program].  In early spring, costs are analyzed by the Finance Manager, the RSU 24 Superintendent, and the Leadership Team. Each line in each account is closely reviewed to make sure important items aren’t missed, initial estimates are revised and the impact on local taxation is given careful consideration.  When revenues are communicated from the State, and other funding is determined, additional reductions may be necessary to make local taxes affordable for residents. Throughout this active process, budget meetings are held where school and program budgets are presented, and question/answer sessions are held.  After the RSUB approves a final budget number, warrant articles are drafted and the District Budget Meeting is held in late May. At this meeting, budget highlights and features are presented, and local taxpayers approve warrant articles in order to send the final budget figure to referendum. The final step of the budget approval process is the budget validation referendum.  This is held on the second Tuesday in June.

 

• What are the revenue sources for the RSU 24 budget?

Revenue sources for the RSU 24 budget come from: local funding raised through property taxes, state funding as designated by the EPS formula, tuition monies raised from out-of-district students attending our schools, and miscellaneous income from sources such as fuel tax rebates, interest income, and sale of buses.

 

• Why do my taxes usually go up each year?

RSU 24 budgets generally don’t go up faster than the rate of inflation - any local tax changes or fluctuations amongst tax rates in RSU 24 towns usually are a result of changes in property valuations and student counts, and as a result of the EPS formula (which is set by the State).

 

• What is the mill rate in my town?

The school budget represents at least 80% of most of our town budgets - in most of RSU 24 municipalities this figure is a little less than 8 mills in order to receive the full EPS allocation. Property tax valuations are established annually - a taxpayer’s assessed value is a percentage of the fair market value and takes into account the overall quality of the property, property values, square footage, home features, and market conditions.  Due to property tax valuation, some towns do not need to raise a full 8 mills.  Please look at your tax bill to find your exact mill rate.

 

• How is the local share (costs) determined within the RSU 24 budget?

Local funding costs are determined by estimating the total expenditures of the next fiscal year for the operation of RSU 24, and then subtracting known revenue figures such as state aid and other miscellaneous revenues.

Total budget expenditures - state funding - other revenues = local funding share

 

• How are costs shared among the municipalities of RSU 24?

Costs are shared equitably across all RSU 24 municipalities.  Each municipality’s local share is determined by using a calculation equation that includes 60% resident student enrollment and 40% valuation figures using data contained in the ED 279 published by the Maine Department of Education.

 

• How much does the State pay towards our school budget?

The State of Maine uses a funding formula to define their share of funding for RSU 24.  The costs are determined by calculating determined Essential Programs and Services (EPS) for RSU 24 (minus) the required Local Share of those costs.  EPS - Local Share = State Share

 

• What is the largest expenditure for RSU 24 within the budget?

Teacher salaries, and personnel costs are the largest expenditure within the RSU 24 budget.  These costs make up just shy of 80% of the total budget costs each year.

 

• Why are there different per-pupil costs at the different RSU 24 schools?

Due to local expectations, different teacher needs, and the impact of economy of scale, per-pupil costs differ within our different schools.  The distant geographic nature of our schools and towns make it difficult to consolidate programs, classrooms, and other practices, causing a variety of per-pupil costs depending on resources at hand, number of students enrolled, etc.

 

• What is RSU 24 doing to conserve funds and build balance forward dollars?

RSU 24 budgets comprehensively each year. Budgets are developed to cover issues that might come up that are unexpected (facilities issues, for example), and to cover possible staffing shifts, if needed.  Spending within a fiscal year is then viewed as conservative, with each expenditure request flowing through an approval path requiring multiple checks and balances. This comprehensive budget process matched with a conservative spending approach helps to build balance forward dollars.  In years that it is achievable/affordable, RSU 24 also tries to set aside a reserve from the balance forward funds.

 

• Will the new school facility impact the school budget? 

In short, yes.  General operating costs of the building as well as the local share of debt service payments will cause an immediate budget increase.  Looking ahead, RSU 24 also projects that there will need to be an increase in staffing due to the facility as well. 

 

• Why does the District Service Facility employ the number of personnel that they do?

The District Services Facility was designed to be a hub to collectively house personnel and departments that allow district schools and programs to be more efficient.  DSF staff cover a variety of aspects of school operations, ranging from food service leadership and oversight, to district-wide curriculum needs and programs, to IT servers and personnel, to the transportation department and bus garage, as well as the business office and Superintendent’s office.  The RSU 24 Board strongly believes that in order for School Administrators to be able to focus on students - strong staff instructional practices, student well being, positive school school culture, parent engagement opportunities, etc. - that they should not need to be focusing on operational issues like facilities, technology, food service, transportation, etc.  Without DSF staff to lead, cover, and take care of compliance work in the areas assigned from the Maine Department of Education, these tasks would fall to the Building Administrators, hence taking away a focus on instruction and student success.

 

• Why do we need so many administrators?  Can't the teachers just operate like they did many years ago?

Education has become very complex since the early 1900’s.  Each decade, Federal and State mandates have continued to pile up in public education. These mandates range from things like mandatory science instruction and health screenings, to required training in many different areas, to required student exposure to various topics, to required participation in a variety of programs - the list goes on.  In order for RSU 24 to meet Federal and State guidelines, as well as ensure that students have a well planned, well rounded, safe, and rigorous school experience, a variety of administrators at both the school and district level are needed for success.

 

• How can I learn more about details within the RSU budget?

First, please feel free to browse through the sub pages of this Business & Finance site to find lots of information and additional documents that comprehensively include budget information and details.   Budget workshops are open to the public as well - these meeting dates, times, and agenda items are also posted on the RSU 24 website. Finally, the District Budget Meeting held at Sumner Memorial High School on the last Wednesday in May, and is another live opportunity to gather information as well as to ask questions before the budget goes to referendum. 

 

• Is the District Budget Meeting really that important?

Yes! The District Budget Meeting is an opportunity for local taxpayers to learn more about the RSU 24 budget.  The meeting includes a presentation with budget details and the impact on your local community, provides an opportunity for questions and answers, and allows each citizen to participate in a voting process that approves warrant articles for each cost center dollar figure in the budget.  It provides opportunities for other voter approval too, such as approving the Adult Education budget. With participant (voter) approval, the budget moves to referendum after a successful District Budget Meeting.

 

• How does the RSU 24 budget pass at referendum?

In order for the RSU 24 budget to pass a referendum on the 2nd Tuesday in June, a majority of voters within the district need to approve the referendum question about the RSU 24 budget.  A majority of voter approval from each municipality is not needed, rather just a collective majority of all local RSU 24 voters need to approve the budget for it to pass.