Bad news for schools

Wiscassett Newspaper, February 14, 2008

(excerpt) As if the year and a half long failed negotiations with the teachers' association wasn't enough to discourage School Committee members, they got the word Monday night that they'll also be in the hole financially by year's end.

Ron Smith from RHR Smith told the committee that the carry forward from the last fiscal year, over $400,000, won't be enough to pay the nearly $800,000 in teachers' salaries for July and August. Wiscasset, like most school districts spread their teachers' salaries out over 26 weeks.

"The financial soothsayers in Augusta didn't take that into consideration when they came up with the school consolidation bill," Smith said.

"Let's say you consolidate. The first thing they're going to ask you is what your liabilities are. I've seen even bigger numbers than this. That's the conversation everyone is having now, whether it involves bus leases or contracts. These are called off balance sheet risks.

Smith said one of the proposed new school districts he knows of will be starting off two and a half million dollars in the hole.