SALEM -– The State Department of Education and the attorneys for MSAD #58 have completed the final figures for the towns’ share of the 2010-2011 school budget. This information was released at a school board meeting last Thursday.

Although the budget is down from last year, some towns will be paying more.

The five towns which make up MSAD #58 pay their share of the school budget by paying a required Local Allocation based on the State Allocation. These figures are based on the state’s Essential Programs and Services formula. The EPS formula uses variables such as valuation and student enrollment to determine state and local share and what each town is mandated to contribute. EPS also determines how much the state will contribute based on efficiencies, types of services as well as many other financial factors of a school district. The state does not contribute a specific percentage of a “total” school budget as was once promised; rather it contributes to what the EPS formula dictates.

This year the State Allocation or state subsidy funding has decreased to $2,772,395 down from $3,239,667 from the previous year. State subsidy was as high as $3.9 million in the 2007-2008 school year.

Next year, MSAD #58 is faced with a penalty of $133,258 for not complying with Gov. Baldacci’s Reorganization Law. This amount is added to Local Allocation or what’s mandated for each town to raise under EPS.

Including the penalty, the local allocation is set for $2,684,278 up from $2,298,935.

Using state formula guidelines which include a cap for Eustis under the Local Allocation formula only, the contribution of the required local allocation portion are as follows:

Avon will contribute $247,080 up from $224,701; Eustis will contribute $662,746 down from $763,546; Kingfield will raise $715,140 up from $630,229; Phillips will contribute $530,700 up from $411,830; and Strong will raise $528,612 up from $393,651.

Above and beyond the local and state contributions, there are “other” district expenses which make up the district budget. These are expenses outside of what the state considers in determining State and Local allocation and typically outside EPS formula calculations.

This is called “Other Local” and represents another $1,069,667 for the towns to raise next year. Last year, the Other Local was approved at $1,468,268.

Due to losses in state subsidy, a rise in Local Allocation and projected decreases in tuition, board members looked to make cuts in Other Local, to reduce the burden on taxpayers.

Other Local is based on State Valuation which has risen district-wide to $448,900,000 up from $391,850,000. These valuations play into how each town’s share is affected.

Of the $1 million needed for Other Local, Avon’s percentage has decreased from 8.54 to 7.91 percent. The Eustis cap is not considered on Other Local, and has decreased next year to 35.30 from 36.91 percent. Kingfield is down in its share of Other Local at 22.89 percent, from 23.95. Phillips will pay a larger percentage of Other Local at 16.99 percent up from 15.64.

Because of a recent state revaluation in Strong, its percentage will increase from 14.95 to 16.92 percent.

State and Local Allocation along with the Other Local make up the Total Town Share. Although the Total Local Share remains consistent district-wide with a line item around $3.8 million, the costs or burden on individual towns shift year by year.

Avon will see a $6,000 total decrease from last year and will pay $343,938 if the budget is approved. Eustis will see a $233,000 savings with the total town share set at $1,073,212.

Kingfield will need to raise $13,169 more at $995,481. Phillips will need to raise $96,938 more with a total town share of $738,739. Strong will take the biggest increase and pay $122,341 more and have to raise $735,883 next year.

The total budget is set for district voters at $9,697,728 down from $10,157,642. Although the budget is down, some towns will take a financial hit next year. It is expected that a financial shift will burden Kingfield the following with a sharp rise in valuation due to Poland Spring personal property valuation coming on the state books that year.

The district budget meeting is set for May 25 at 6:30 p.m. at Mt. Abram High School.