Superintendent’s Recommended Budget FY 2026

March 17, 2025

Regional School Unit 21

RSU 21 Budget Process for Fiscal Year 2025-26

Fiscal Year 2025-26 Budget Summary

​

• Fiscal Year 2025/26 operating budget is projected to be $62,567,439

​

• This is a $3,294,737 increase (5.54%) from fiscal year 2024/25

​

• The resultant net tax increase is $4,048,390, a 8.04% increase in taxes from the $50,346,226 raised for fiscal year 2024/25

• Estimated Tax Assessments for Fiscal Year 2025/26 are:

Arundel $6,648,791 7.7% Increase from FY 2024/25

Kennebunk $33,535,708 7.6% Increase from FY 2024/25

Kennebunkport $14,210,118 9.4% Increase from FY 2024/25

​

Fiscal Year 2025/26 Budget Compared to Fiscal Year 2024/25 Budget (pg. 19)

Revenue Comparisons from Fiscal Year 2022/23 to Fiscal Year 2025/26 (pg 20)

Proposed Use of Starting Fund Balance for Fiscal Year 2025-26

• The goal of the Finance Committee has been to reduce the use of Starting Fund Balance over the course of several fiscal years
• $3.2M balance in FY23; $2.9M in FY24; $2.5M in FY25; $2M in FY26; $1.5M in FY27
• Given the proposed tax increase - Starting Fund Balance will remain at $2.5M

​

​

Change in Key Metrics from Fiscal Year 2024/25 to Fiscal Year 2025/26 (pg 33)

Change in Key Metrics from Fiscal Year 2024/25 to Fiscal Year 2025/26 (Cont’d)

Change in Key Metrics from Fiscal Year 2024/25 to Fiscal Year 2025/26 (Cont’d)

Most of the Budget (66.7%) Goes Towards Direct Education of Students (pg 37)

71.9% of Staff Are Teachers and Ed Techs Who Work Directly with Students (pg 37)

Most of the Budget (72%) is Comprised of Staff Salaries, Wages, and Benefits (pg 39)

Budget Considerations - Additional Staff Minimized Despite Growing Needs

• Existing staff re-assigned where possible (SRS and Superintendent’s Office)
• The total number of FTEs employed by the District will increase by 1.3 in FY26
• Regular Instruction will increase by 2.38 FTEs
• Special Education will increase by 0.6 FTE
• Career and Technical Education will decrease by .68
• Student and Staff Support will increase by 1.0 FTE
• System Administration will increase by 1.0 FTE
• Facilities will decrease by 3.0 FTEs

​

Primary Driver of Budgetary Increase - 1. Staff Salaries and Wages

• As shown in Key Metrics, staff salaries are projected to increase by $1,876,202
• This represents almost 57% of the total budget increase (it was 56% in Fiscal Year 2024/25)
• Given teachers are the foundation of the District, the total increase for the 260 teacher FTEs is $1.64M
• The projected budgetary increase for the remainder of the 249 non-teaching FTEs is $711,000
• Total increase in staff salaries and wages reduced by reduction of positions and contracted custodians

Primary Driver of Budgetary Increase - 2. Benefit Cost Increases

• Total benefit costs are projected to increase by $1,094,348 - 33% of the total $3.3M increase
• Payroll related increases are $163,000 of the $1.1M
• ME PFML full-year expense increase is $88,000
• $843,000 is related to a projected 12% increase in health ins.

Primary Driver of Budgetary Increase - 3. Non-Labor Increases (pg 7)

• The total net increase in non-labor expenses is projected to be $324,000 - 9.8% of the total $3.3M increase
• Components of this increase are:
• A total increase of approximately $747,000 in Special Education expenses - $480,000 for out-of-district tuition and remainder for contracted services
• Restoration of $310,000 in System Administration expenses cut at the May 6, 2024 District Budget Meeting
• A net $250,000 in increased transportation expenses for the purchase of two Type C school buses
• $200,000 increase for Facilities contracted services

Budgetary Components of Which to Take Note

• Changes in salaries, benefits and non-labor by District cost center is summarized on page 7
• List of District needs and wants starts on page 11
• List of recommended areas to cut from the budget, if necessary, starts on page 16
• Summary list of District cost center expenses by State mandated article begins on page 23
• Tab O is not a District cost center per se but is a comprehensive list of all non-athletic stipends spread across cost centers (page 199)
• Tab V on page 333 lists the 5-year capital improvement projects plan for Facilities, Technology, and Transportation

Account Coding Changes of Which to Take Note (KCS page 127)

• For the elementary schools, grade level staff salary and benefit accounts have been collapsed into one salary and one benefit line
• Allied arts staffing has been collapsed for each elementary school but has been kept separate from classroom teacher accounts
• General and instructional supply accounts and textbooks accounts have been revamped so as to not be based on grade (page 128)
• Assistant Superintendent non-labor budget has had expenses transferred to it (starting on page 59)
• Global Exchange Teacher fees (from HR)
• Symposium and staff PD (from HR and Superintendent)
• Asst. Superintendent budget increased by $50k for Summer Boost
• Transfer of Athletics transportation expense to Transportation budget

Errors to Correct in Second Read Budget

• High School Staffing Errors (page 169-170)
• An English teacher has been budgeted as a 1.0 FTE teacher but is shown as a .67 teacher
• A STEM teacher has been budgeted as a .67 teacher but is shown as a .5 teacher
• A 1.0 STEM teacher was omitted from the budget and will be added to the Second Read Budget @ $109k
• 1st paragraph on page 9 should read: “The total of all school and department non-labor budgets is projected to increase by $324,000 which represents 9.8% of the overall increase in the fiscal year 2025-26 proposed budget.”
• Others? If found, please email Britney Gerth @ bgerth@rsu21.net

Final Thoughts

• Over the next two weeks it is important for members of the Board and the Public to understand the components of and the changes within the Fiscal Year 2025-26 budget

​

• However, given the great uncertainty about what the District’s overall health insurance increase will be, it may be best to refrain from discussing what remains or what is added to this proposed budget until we receive our actual increase at the end of March or in early April

In Closing

• Thank you for your time and attention

​

• I am open to answering questions but will ask that any specific questions about a school or department budget be directed at the appropriate Administrator during the cost center review meetings to be held next week