Recently, the
Harpswell Selectmen received a petition presented by some of its
townspeople asking that the Town leave M.S.A.D.
No. 75. Several questions have been raised by School District
community members regarding the process and the impact on Harpswell
and the School District should the withdrawal process go forward. On
January 28, Harpswell will vote to decide whether it will form a
committee to enter negotiations with M.S.A.D. No. 75 to determine
the terms for withdrawal. A majority
vote is required to pass. Should
it pass, once the terms are agreed to by the Town’s committee and
the School District, a final vote will be held in Harpswell
to decide if the Town wishes to leave the District. That vote
requires a 2/3 majority to pass. This communication seeks to
identify and answer some of the most substantive questions we are
being asked. Please feel free to contact me if you have additional
questions about this process.
What does the withdrawal process
entail?
A document from the State Department
of Education can be found on the District website (www.link75.org)
which outlines both the statutory process and the required elements
of the withdrawal agreement.
Why do the petitioners want
Harpswell to withdraw from the District?
The
petitioners believe that Harpswell’s local cost per student is
disproportionately and unfairly large when compared to the cost
per pupil borne by the other three District towns. Because
Harpswell’s mill rate for education is below the State threshold to
generate State subsidy, Harpswell’s entire share of the District
budget (except for $189,936 in special education subsidy and
$115,521 in other revenues) is provided by Harpswell’s property
taxes. Harpswell’s share ($7,241,489) of the total District budget
($33,819,170) is 21.4%. It raises $6,936,032 of its share through
local property taxes to educate 583.5 students which
means that the Town puts $11,884
behind each Harpswell student. The other towns in the District
generate State subsidy because
their education mill rate is
above the State 8.26 mill threshold; therefore, the amount needed to
be raised by property taxes is less.
|
Town |
Local
Contribution |
Total Contribution
Local + Subsidy |
# of
Students |
Cost/Student
from Local $$ |
Total
Cost/Student |
|
Bowdon |
$1,873,897 |
$
5,427,732 |
566 |
$ 3,311 |
$ 9,590 |
|
Bowdoinham |
$1,837,624 |
$
4,428,871 |
456 |
$ 4,029 |
$ 9,712 |
|
Harpswell |
$6,936,032 |
$
7,125,968 |
583.5 |
$11,884 |
$12,212 |
|
Topsham |
$7,077,870 |
$16,072,499 |
1,511.5 |
$ 4,683 |
$10,633 |
Do the
petitioners want Harpswell to withdraw for educational reasons?
No. They have specifically stated
they are satisfied with the education their children receive from
the District.
Has a
study been done to evaluate the financial and educational impact on
Harpswell and the School District should the
withdrawal occur?
No.
Information has been provided the residents of Harpswell with
preliminary financial data for Harpswell regarding its potential
educational costs should it leave the District. Some of the
financial information would only be available once the withdrawal
terms are settled. There has been no comprehensive study of the
financial implications for District taxpayers, or of the possible
impact on the education of District students, including Harpswell’s
students.
Would the process for developing the
withdrawal agreement serve as a study?
The elements of the withdrawal
agreement as specified by Law ask the withdrawing town to define how
it will educate its children and
specify what commitments to the District need to be negotiated. The
agreement terms do not ask for a cost/benefit analysis or an
educational analysis of the effect of withdrawal on the District.
Does the Law require that the vote to develop the withdrawal
agreement be held within a specific time frame?
There is no
mention of a time frame for this first vote in the Title 20
(education) statutes that define the process.
Beyond the
potential savings for Harpswell presented by the Selectmen, what are the
other possible financial implications
for the Harpswell if it withdraws?
The withdrawal
agreement must, by Law, address financial commitments arising from
outstanding bonds, notes and contractual
obligations that extend beyond the
date of withdrawal. The School District has the following commitments of
which Harpswell would be expected to bear a share.
|
Category |
Amount
Outstanding |
|
Bonds |
$28,928,770 |
|
Capital
Leases |
114,533 |
|
Operating
Leases |
300.324 |
|
Teacher
summer salaries |
2,5 17,728 |
|
Total |
$31,861,355 |
The method of sharing costs while
Harpswell is part of the District is the local cost sharing formula
wherein Harpswell’s share this fiscal year is 37.01%. Specific amounts
that would be due from Harpswell upon withdrawal would be determined as
part of the withdrawal agreement.
What are the possible financial
implications for the rest of the District?
No comprehensive review of financial
implications has been done at this point. Preliminary data suggests that
the District may have to look to the
other three towns for as much as $940,000, since the departure of
Harpswell will result in the loss of revenue to the District.
What
assurances do the citizens of Harpswell have that their children would
be allowed to continue to attend Mt. Ararat
Middle School and High School should the
Town withdraw?
The first year
after withdrawal, the Law requires that students may attend the school
they would have attended had the withdrawal
not taken place. A contract between M.S.A.D. No. 75 and Harpswell to
tuition students to M.S.A.D. No. 75 beyond that first year could be part
of the withdrawal terms. It would require the approval of both
legislative bodies. Thus, a favorable vote of the citizens of Harpswell
and of the remaining towns is required.
What is the
percentage of property taxes that are dedicated toward education in each
district town? (Most recent tax
year data available from district towns)
|
Town |
Tax Year |
Total Mill
Rate |
% of Mill
Rate for Education |
|
Bowdoin |
1/1/05 – |
12/31/05 |
19.50 |
83.72% |
|
Bowdoinham |
7/1/05 – |
6/30/06 |
12.40 |
5 1.84% |
|
Harpswell |
1/1/05 – |
12/31/05 |
5.75 |
83.48% |
|
Topsham |
7/1/05 – |
6/30/06 |
22.35 |
62.00% |
What is the
tax burden per home for education in SAD 75 member towns?
(Most recent tax bill from each town and
State home price data)
|
Town |
Local Mills
For education |
Median Home Price
(2004) |
Ed Tax Bill
(Median Price) |
Ed Tax Bill
($480,000 Home) |
|
Bowdoin |
16.33 |
$185,600 |
$3,030 |
$7.836 |
|
Bowdoinham |
6.43 |
$165,000 |
$1,061 |
$3,086 |
|
Harpswell |
4.80 |
$480,000 |
$2,304 |
$2,304 |
|
Topsham |
13.86 |
$189.500 |
$2,625 |
$6,651 |
|