MSAD #71
SCHOOL BOARD COMMITTEE AGENDA
Name of Committee: Finance Committee
Date of Meeting: December 20, 2004
Attendees Invited: MSAD71 Finance Committee Members, Jim Barnes, Kennebunk and Kennebunkport School Budget Committee Members, Kennebunk and Kennebunkport elected State Representatives and Senator, representatives of the District Parent organizations, The Kennebunk Taxpayers Association, and any interested members of the General Public
Time and Location: 4:00pm at District Central Office
Topics of Discussion: Financial Implications of Governor Baldacci’s Education Budget Proposal
Jim Barnes, MSAD 71 Business Manager will report the results of his and Dr. Farrell’s meetings with state officials to review the implication of the governor’s new tax proposals.
Preliminary results indicate that MSAD 71 will be negatively impacted by the budget proposals concerning the Essential Programs and Services and the new State/Local cost sharing proposals being considered in Augusta at this time.
The essential points are that the current legislation would invalidate the portion of the founding charter agreement between Kennebunk and Kennebunkport that set the educational cost sharing formula between the two towns. This would directly invalidate the formula for roughly 85% of the MSAD 71 school budget. The remaining 15% of the budget would apparently still be covered by the existing charter.
This change would potentially increase property taxes in Kennebunk by more than $2mm, or more than 15%, on a zero increase in school spending budgets. Local residents in Kennebunkport would save some property taxes, but it may be that a majority of the Kennebunkport “savings” would be received by out of state vacation property owners.
The District has learned that the Wells/Ogunquit District would have been similarly impacted by this legislation, but that it has obtained an exemption of some kind from the cost shifting impact.
It is noted that the Governor seeks legislative approval of the current proposals by January 20.
The District has asked all of its State Legislators to participate in a round table discussion regarding which actions MSAD 71 should take to protect the taxpayers of the District from the negative impact of this legislation as currently drafted, while finding some means of securing real property tax relief for the residents of both towns.
The second goal of the meeting is to set an action plan and to assign responsibility for the action steps.
BUDGET UPDATE
1. Jim Barnes will provide a MSAD 71 2005/6 budget status update after the conclusion of the property tax discussion
Signing of Warrants
Will take place after all other business.
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