Council approves School Department Budget

In a second Town Council Special Meeting this week, the council voted 5-2 on May 19, 2022 in favor of approving the Cape Elizabeth School Department Budget FY23 as recommended by the School Board for a total appropriation of $31,255,751 and estimated revenues of $2,847,606.  The council was unsuccessful in completing a vote on the budget on May 16, with only three councilors voting in favor and two opposed.  Per Town Charter at least four votes shall be required for passage of any ordinance, order, or resolution.

Councilor Timothy Reiniger made a motion to amend the school budget by lowering it to $30 million; Councilor Susan Gillis seconded.  The amended motion failed with a vote of 2-5.  Reiniger then made a second amendment to the original motion, by proposing that section seven of the motion be changed to show that 100% of any positive changes in state subsidy be used to lower taxes -- not 50%.  Gillis seconded the motion.

Councilor Gretchen Noonan and Chair Jeremy Gabrielson asked the school Business Manager Marcia Weeks to explain the intent of returning 50% of potential extra state subsidy to the school's unassigned fund balance.  Weeks explained that should the state provide more subsidy than currently budgeted for in the school department's Fiscal Year 2023 budget, the funds could only be used during the following year's budget process, "It wouldn't be able to be spent during the year that the state gave money because we are restricted to our budget that is adopted."  Therefore, the excess subsidy would, "Reduce property taxes in the next year or be able to provide something that was proposed, but essentially it's always going back to the taxpayers," Weeks said.  This year, $750,000 is being used from the unassigned fund balance to lower the tax rate.  In addition, should the school see a reduction in state subsidy the following year, returning 50% to the unassigned fund balance helps avoid significant tax-rate fluctuations. 

Reiniger's amended motion to return 100% of state subsidy also failed with a 2-5 vote.  No further amendments were made to the original motion made by Noonan and seconded by Councilor Penny Jordan at the beginning of the meeting.  The original motion as presented in the agenda passed with a vote of 5-2; councilors Reiniger and Gillis voted against.

The school budget will next go to a Budget Validation Referendum on Tuesday, June 14.  For more information on the school budget, please visit the Town Budget webpage.  

Absentee-ballot requests are currently being accepted.  For more information on how to request and absentee ballot or for more election information, please visit the Town Clerk's Elections & Voting webpage.


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