HOULTON, Maine – Houlton property tax bills will increase again this year if town voters approve the RSU 29 budget for the next school year on Tuesday night.
Taxes on a property valued at $200,000 will go from about $4,120 to $4,400 because the increased local contribution to the school district will increase the mill rate from 20.6 to 22, according to tax assessor Terry Duff.
During Monday’s Town Council meeting, Houlton School District Superintendent Joe Fagnant explained to councilors that RSU 29 is trying to run a Class A-size school on a Class C-size budget.
“In two to three years we’re almost out of business,” Fagnant said. “I can’t cut anything more and still have kids show up and not have places to put them. We need the town’s help.”
The RSU 29 budget of $16.4 million for fiscal year 2024-25 is up from last year’s $16 million to cover a $1.1 million shortfall.
According to Fagnant, the budget includes increasing town contributions by $750,000, cutting nine positions, eliminating the French and Breaking Ground (planting and seed growing) programs and funding for several co-curricular activities. The towns in the district are Houlton, Hammond, Littleton and Monticello.
If the budget passes on Tuesday night, the required and additional local shares by town are: Houlton $2,113,214 required, $533,926 additional; Hammond, $60,573 required, $15,304 additional; Littleton, $412,646 required, $104,260 additional; and Monticello, $381,974 required and $96,509 additional.
Local businessman Fred Grant talked about the school budget cuts and the town’s increasing contribution, during the public comment period.
The cost of managing both schools and municipalities is shifting from the state to the local communities, he said.
“Unfortunately we are in a situation where the burden is being distributed to the towns on a more frequent basis,” he said. “We have seen a degradation of programs that take place within our school district and districts around the state.”
Grant likened helping the school now to replacing a roof when it starts leaking instead of putting off the expense until the property is lost. It’s about an investment today for the benefit of tomorrow, he said.
“An investment in our schools is an investment in our community,” he said. “People looking to move here look at the quality of education in our schools and the programs offered.”
Fagnant explained that increasing town valuations and dropping enrollments are tied into the state’s funding formula.
Councilor James Peters pointed out that the school budget increased last year before the town’s recent market adjustment increased valuations.
“I just want everyone to be clear that the school budget did go up (last year) by $260,000 so it’s just not the [revaluation],” he said. “The reval raised people’s taxes but so did the school budget.”
Additionally, Duff said that the recent market adjustment has not yet been included in the state calculations, meaning it will affect future school budgets.
“The state runs two years behind on the valuations. What we did in 2023 is not going to show until 2025, “ Duff said.
The school district began trimming staff and line items last year by eliminating 17 positions and cutting $1.2 million from the budget. This year, they are cutting nine more positions in addition to other student programs, for a total of more than $1 million in budget cuts. That’s a two-year reduction of 26 positions and $2.2 million, Fagnant said.
“Teachers are losing their jobs, are any administrative staff losing their jobs?” Peters asked.
Fagnant said that there were actually two positions, a full-time athletic director and a budget finance position, added to the administrative budget in the last two years and the finance committee did not want those positions eliminated.
“Bottom line, no administrative staff (are being cut) and teachers are losing their jobs,” Peters said.
In response, Fagnant said the district wants to add another administrative position because the district is not keeping up with truancy and behavior issues.
“COVID changed our students and we are not keeping up with what is coming to us on a daily basis,” he said.
Several councilors asked about dropping enrollments.
The homeschool movement is hitting the area pretty hard, Fagnant said, adding that they have 84 home school students.
Coming out of COVID-19, kids are not coming back to the schools and that means the schools lose that funding, Fagnant said.
The voters will set the budget on Tuesday night and whether it is up or down, it is the budget the school district will work with, Fagnant said.
“If it is down, Wednesday morning I will bring my team together with the finance committee and we will cut more positions,” he said.
Council Chairman Chris Robertson urged taxpayers to attend the budget meeting.
It’s a tough decision, if the budget passes the town will have a $750,000 mandate to pay, he said.
“Looking down the road we have some real concerns. Mr. Fagnant pretty much stated that it’s going to be more money the following year,” Robertson said. “There’s going to be a point in time that the school budget is going to be unsustainable.”
The district budget meeting is at 6 p.m. May 14, at Houlton High School.
