Four towns asked Hampden-based Regional School Unit 22 to return nearly $5 million of taxpayer money they say the school district shouldn’t have.
The district’s fund balance has been over what’s allowed by state law since 2017. Hampden, Winterport, Frankfort and Newburgh started asking for part of their tax dollars back last summer when they learned about the issue and recently voted to send a letter to the district.
RSU 22 had $8.89 million in the fund balance, according to a June 2022 audit. That’s nearly $5 million more than the legal amount of roughly $2.94 million the fund can carry from its budget of $35.3 million. The district cannot have more than 9 percent of its budget in the fund balance for fiscal years between 2021 and 2025, under Maine law. All other years the amount cannot exceed 3 percent.
Hampden council members voted unanimously 7-0 to send the letter at a meeting Monday. Elected officials in Winterport, Frankfort and Newburgh also signed the same letters, asking for the money back.
The district has not received the letters, Superintendent Nicholas Raymond said Friday.
Hampden, Frankfort, Newburgh and Winterport learned about the excess money in the fund balance after a Bangor Daily News article published in August, Hampden Town Manager Paula Scott said. Sending the letters was another step in trying to get the money back from RSU 22.
The district’s expenses were under budget because of unfilled positions, federal and local grants and a solar installation, and there were more revenue-generating tuition students than expected, Raymond said.
The yearly increases to RSU 22’s budget are “egregious and uncalled for,” and has created an “unnecessary strain on the taxpayers,” the letter said. The towns want the district to explain the excess money. The unanswered question has led to speculation the district is using the money to complete projects that the money isn’t allowed to be used for, the letter said.
The district has not spent the money from the unallocated balance, because there is a specific process to designate funds, Raymond said. That process can only happen during the district meeting, which is typically in June.
The finance, building and budget committees are discussing how to deal with the excess funds, Raymond said. Reducing the amount towns pay in assessments is a priority, but an amount is not yet determined, he said.
If the money is returned, it will be kept in a reserve account to offset future educational costs from RSU 22, Scott said. The town’s legal counsel said RSU 22 has until the middle of the year to address the overages, which is quickly approaching, she said.
“This is an important issue for all of the communities represented in RSU 22,” Hampden councilmember Eric Jarvi said. He deferred all other questions to Scott.
