SALEM -– School Board members met last Thursday, Feb. 11. The preliminary news concerning future state subsidy and the shift it will put on local towns may have the MSAD #58 on the fast track for change.

Superintendent Quenten Clark provided members with a document that showed what it would be like for local towns if they spent the same amount of money next year as they did this year. This is based on a preliminary report which showed state subsidy for fiscal year 2010/2011.

The document showed that the state allocation was seriously reduced for the year from $3.2 million to $2.6. Local allocation, which Clark said was the minimum amount that towns need to raise to get state allocation, was also up to $2.9 million, from $2.4.

In the 2007/08 budget year the state provided nearly $4 million in subsidy. That amount is on its way to be cut in half in the future. What’s considered “other local” is also expected to be up nearly $100,000.

In the 2008/09 school year, Medicaid revenue was also discontinued; the previous year, it provided the district $170,000.

Although there was some good news coming in the form of federal stimulus revenue or ARRC, next year they’ll receive $151,093 over this year’s $90,722. “That’s good news,” Clark said. But he informed members that the following year all federal funding will cease entirely.

Over recent years, tuition has also been up and very helpful to the anticipated budget.

“If we budgeted the same amount of money next year, and I’m not sure if we can, but if we did, we can assume the following,” Clark said.

Avon would see a $38,000 increase in its share and spend $388,000 in 2010/11.

Eustis, being what’s called “capped” due to a minimum number of students and high valuation, would save roughly $68,000. If things didn’t change it would spend $1.24 million instead of $1.31. That decline in cost will continue with the expected decline in students as was shown in another document provided by Clark that evening.

Kingfield would see roughly $140,000 more in education costs next year. Kingfield’s greater concern is the Poland Spring Bottling Plant’s $20 million in personal property valuation which is coming on the books the following year. This would move a rather large shift on that town in terms of “town” percentage share.

Based on increased state valuation as- sessments that caught up with Strong and Phillips, they would each be responsible for nearly $200,000 more in local share next year. “This has created some concern in the Town of Strong and I’m sure that the numbers will cause concern in Kingfield and Phillips,” Clark said.

“I’ve hoped I’ve made a math mistake and can’t find it and if I had or if I did, that’s a good thing,” Clark said.

Clark said that the state has committed to provide early financial numbers for the 2011/12 year, which could show the amount of estimated state subsidy as well as projections without the federal stimulus money.

“This should give people a view of what’s expected in taxes. It’s pretty dramatic and pretty sobering,” Clark said. “As sobering as it is for us there are communities that were hit five times as hard as us… There are dramatic stories across the state. Whatever we do is happening all across the state and in a much more dramatic fashion,” Clark explained.

Board chairman Mike Pond said he recently went to a selectmen’s meeting in Strong. “I know that they’re not happy. I know that the Town of Strong is not going to be grinning when they hear they’ll need to pick up $220,000 this year. It’s not going to fly –-it’s over three mils,” Pond explained. “They know what’s coming in the following year. This (2010/11) is the good year.”

Pond said they need to meet more than monthly, they need to meet with administrators and staff and they need to brainstorm. “I think if we all put our heads together we may come up with something better than what we have now.”

Pond elaborated on the importance of keeping schools open in the towns, especially in Phillips and Strong. He said that closing schools in these towns would kill those towns due to a lack of industry. “The only town I see flourishing is Kingfield and we got killed with the TIF. People don’t like to hear that, but we got killed with the TIF. It has seriously impacted this district.”