Calais council struggling to reduce budget shortfall

"It's just a perfect storm of things" is a common phrase during this year's City of Calais budget workshops. A combination of reduced state school subsidy payments, revenue sharing and property tax exemption reimbursements combined with the large increase in the Washington County tax payments has put the city in the uncomfortable situation of a shortfall of about $900,000 for fiscal year 2027.

The overall municipal budget excluding the county tax and the school department budget has a proposed increase of $306,489 or 6.76% above the current year. The increased costs for benefits and for payment for unused leave for retiring employees represent nearly 40% of the total increase. When the county tax is included, the budget increases by more than $811,821, or 16.2%. The county tax, including the prepayment for the tax-anticipation note (TAN) that was paid in December, represents 62% of the total increase, or $505,332.

During a series of budget workshops, councillors have generally accepted the department budgets as proposed. One alternative suggested is to not fund current vacancies in the police department and instead to fund them out of the fund balance forward as they are filled. Special projects are also unlikely to be funded, as the council believes that the purchase of the Calais Armory is the priority. The estimated purchase price of $575,000 would be paid from the fund balance and would drop the balance to near the state recommended minimum. Finance Director Crystal Gallina reminded the council that last year the city applied more than $400,000 from the fund balance to offset the current year revenue gap to avoid increasing taxes.

Councillor Michael Sherrard stressed that the aging population in Calais cannot afford to have their property taxes increase and that the recent action by county commissioners Courtney Hammond and David Burns to approve a raise to $30 an hour for part-time deputies was "irresponsible and they should be ashamed of themselves for taking such an irresponsible action," while noting that commissioner Billy Howard was the sole no vote on the motion.

The school department budget has drawn the most attention from the council, with resistance to the proposed $255,682 in the additional local allocation, an increase of about $22,579 over the current year. Councillor Sherrard suggested that the school increase from local taxation of $94,073 was "irresponsible," and he felt the school department should cut their budget by at least $100,000. The total proposed local share includes an increase of $71,494 that is required by the state as well as the $22,579 in additional local contribution. The school department budget as approved by the school committee increases by $466,409, or 4.85%, over the current year.

Superintendent defends budget

Superintendent Mary Anne Spearin provided the council with a presentation during the June 17 budget workshop. Spearin noted that the local share of the school budget represents about 21% of the total municipal budget, including the county tax. Excluding the county tax, the schools represent about 24%. Calais has one of the lowest maximum allowable tuition rates for both elementary and secondary schools, which is an advantage in recruiting out-of-district students. Calais also has a lower starting wage for teachers than many districts, although this is increasing over the next few years as a result of state legislation. In addition, the state has mandated that ed techs are paid at least 125% of the minimum wage and that all other non‑teaching positions are paid 115%. These are costs that the district cannot control.

Spearin closed with a statement to the council, noting, "The words have been clear over the years: Our students' education is a cost we must minimize, instead of an investment we must prioritize." After noting that she shares the concern over the impact of a tax increase on the older population, she reminded the council that "towns that stop investing in their youth become retirement communities with declining services" and that "investing in our kids isn't charity; it is the economic development tool we need to grow Calais beyond its current situation."

Spearin closed by summarizing the actions taken to reduce the school budget, including eliminating four positions following resignations or retirements, eliminating funding for needed maintenance and repairs, not funding the trustees' account, deferring books and technology including devices and infrastructure upgrades, and flat lining or reducing the supplies budget.

Following her presentation, the council acknowledged that they have some difficult decisions to make before adopting the budget and that the school committee needs to be part of those discussions.