District 63 Floats Harsh Cuts, Reductions Due To Budget Squeeze

East Maine School District 63's Board of Education was confronted Wednesday with eight pages of difficult recommendations to stave off a looming deficit--but only for two more years. 

The tension was palpable in the gym of Nelson School at the board's "Committee of the Whole" meeting. Teachers and staff members sat forward, elbows on their knees, hands cupping their cheeks. There weren't many smiles.

"This year is anything but typical, considering our financial situation," said Supt. Scott Clay. "Some of you may hear options tonight that may put your job in jeopardy. We recognize that, and I apologize to all of you who have to hear this publicly."

What's causing the budget squeeze

The district's financial health is projected to continue declining over the next few years because of the state-imposed revenue cap, rising costs and the ailing economy. If its current path remains unaltered, the district's fund balance will dip below $12 million—or three months of operating expenses—in the near future, rendering the school unable to cover its bills until the next time revenue is collected, which is usually a biannual payout of property taxes.

It's essential for District 63 to have at least $12 million in the bank to cover its expenses until the next paycheck.

"The fund balance allows a school to operate until the next payday," said David Bein, executive director of business services. "If you run out money before your next paycheck, then it gets awkward and you have to borrow."

Bein projected the 2012 deficit to be around $1.7 million, growing to $2.4 million in 2013.

A breakdown of the cuts

For the past few months, a task force has reviewed the district's finances in an effort to gain "financial stability" by bringing revenues and expenses into alignment for the next six to 10 years. Bein presented their findings in an eight-page handout that offered more than 20 suggestions for an estimated $3.58 million in savings—but only for the next two years. 

Members of the task force felt they should continue to function in the future so they can regularly review the district's finances.

Some of their recommendations included the following:

• Changing bell times for an estimated $350,000 in savings
• Reducing literary specialists – $200,000
• Reducing social workers – $190,772
• Eliminating gifted program – $184,641
• Reducing speech-language pathologists – $159,769
• Reducing psychologists – $103,856
• Eliminating a disciplinary room at Gemini – $91,350

The task force considered but did not recommend the following:

• A salary freeze or reduction for an estimated $1.11 million in savings
• Eliminating music and art – $1.01 million
• Increasing the elementary class size ratio to 28:1 – $412,472 
• Increasing the middle school class size ratio to 30:1 – $316,014
• Eliminating bus transportation – $1.43 million
• Charging everyone for busing – $736,300
• Corporate sponsorships for an unknown amount of revenue

"We didn't sign on hoping to make decisions like this"

Separate from the recommended cuts, the board is anticipating having to lose a number of full- and part-time employees that combine to form 14 full-time equivalents.

"About 14 staff positions may be reduced in the normal course of business because of changing programs," Bein said. At an estimated $50,000 per full-time position, Bein guessed it would result in about $700,000 in savings.

Board members wanted further discussion about the options to freezing salaries and increasing class sizes—which Bein said impact more than 75 percent of the budget. Although they didn't necessarily support either choice, they did feel the options were worth discussing.

"This seems to patch together the budget for two years at best," said board member Walter Gluzkin. "We should review to see if we can extend this beyond just two years to four or five years. I think in two years we're going to be in even more pain."

Other board members emphasized that the conversation, as painful as it is, affects everyone.

"For us to sit up here and talk about this is a very difficult conversation," said board member Tom Simmons. "We're in this as a team."

Board President Jane Wojtkiewicz added: "We didn't sign on hoping to make decisions like this. We committed to our community that we would support and protect them, but it ends up being an open wound. We'll do the best we can."

When asked about the possibility of a referendum, Bein pointed to the fact that after the 2004 referendum, the board promised it wouldn't ask for another until at least 2010.

"Well, we're now in 2011, and we haven't asked," he said. "I think that's pretty good. We've surpassed the commitment."

The board will decide if and how they will implement the task force's recommendations at its March 2 meeting.

Reactions in the crowd

 One teacher voiced some of the frustration staff members are feeling as many stood around the gym and talked after the meeting.

"What if administrators were willing to take the same kinds of cuts they're asking us to take?" said the teacher, who asked to remain anonymous for fear of catching heat from leadership. "They're all about being 'in it together,' but it doesn't seem like they're stepping up. There's nothing [in the recommendations] about administration."

The teacher said the proposed cuts to literacy-related jobs and services were especially concerning.

"Reading is a huge part of what we're tested on and what the state holds us accountable for," she said.

And it's not just services; the futures of real people's jobs are also at stake, not just a number of full-time hours.

"I'm nervous," the teacher admitted. "One of my colleagues left in tears."