Dear Editor:

The last Edgecomb Education Department audit, dated June 30, 2022, showed a surplus in the school’s general fund of $669,331. Since then, the underbudgeting of expected tuition from nonresident students compared to actual expected revenue* should have added an additional surplus of $679,219 to the general fund, bringing the total to at least $1,348,550.  This assumes, however, there has not been an undisclosed overrun of each subsequent year’s budget.

According to Maine regulations (MRS Title 20-A, §15689-B.(6)) all but a small portion of excess funds “must” be applied to the next or subsequent three (3) years’ school budget. Since that FY2022 audit, however, only $500,000 has been allocated for that purpose, leaving an estimated balance of $848,550. For FY2026, that same regulation allows the school to retain only $188,014 of any remaining general fund surplus. This means that $660,536 should be applied to this and/or future budget(s), thereby lowering the tax assessment without any adverse impact on the school.

This year (FY2025) and next year (FY2026), however, the Edgecomb School Board has allocated $0 (zero) of that surplus to its budget.  The explanation we are told is “we do not have audited and updated information giving us the current amounts that exist in our reserve accounts and in our unassigned fund.” No place in the regulations, however, is there a provision to avoid compliance merely because the school has failed to properly track its finances.

Simply put, the Edgecomb School Department has amassed a large surplus at taxpayer expense by not applying those excess funds to subsequent budgets, as required by the regulations. Taxpayers deserve clear, honest answers and full compliance with the regulations, especially because compliance would lower taxes without any negative impact on the school.

Kathryn Rohr MD

Edgecomb

*based on actual student enrollment and contracts with RSU-12