By Gillian Graham

Staff Writer

School officials in Regional School Unit 23 expressed relief about a smaller than expected state subsidy cut for next year, but warned the budget outlook for the following year is “dismal.”

Michael Lafortune, superintendent of the district that covers Saco, Dayton and Old Orchard Beach, said he anticipated a state subsidy cut of as much as $2 million. He said numbers released last week show the district will receive $30,000 to $200,000 less than last year.

The final state subsidy amount will depend on how the Legislature distributes penalty funds from school districts that did not comply with Maine’s school consolidation law, said RSU 23 board member Gary Curtis of Old Orchard Beach.

As board members work to craft a budget that must be approved by voters in three communities, officials are looking ahead to a possible $1 million shortfall for fiscal year 2011-12 as federal stimulus money runs out. Federal funds were used to offset curtailments in state subsidies for education in the past year, Lafortune said.

Curtis said he was happy to see more favorable numbers for state subsidies come down from the Department of Education last week. The board is in the middle of a series of workshops and meetings to create and review the budget before a public hearing and validation referendum later this spring.

“It’s real important we don’t sit back and say we’re fine,” Curtis said. “We don’t want to scramble next year. This gives us a little breathing time before the federal cuts.”

Lafortune asked all principals in the district to reduce on-site budgets by 10 percent at the beginning of the budget process.

“We know economic times are tough. We have to be as efficient as possible and understand what’s going on in the real world,” Lafortune said. “We can’t sell a budget that’s way out of line as far as growth goes in this economy.”

Lafortune said district officials are beginning to look at the personnel portion of the budget, the district’s largest spending area. He has implemented a retirement incentive plan that provides a $10,000 bonus to eligible employees. Younger teacher who replace retirees often make less, saving the district money, he said.

Curtis said board members also are considering an open enrollment plan that could potentially save the district money in tuition costs to Thornton Academy. Currently, all high school students from Saco and Dayton attend the private town academy. Old Orchard Beach residents attend Loranger Middle School and Old Orchard Beach High School. Students from Dayton attend middle school in Saco.

Curtis said an open enrollment committee suggested the board of directors consider implementing a one-year pilot program to allow Dayton students to attend Old Orchard Beach middle and high schools. Students leaving Dayton Consolidated School may feel more comfortable in a smaller learning environment, he said.

Curtis said Old Orchard Beach schools offer smaller classroom sizes than in Saco, as well as a marching band and a “no cut” sports team philosophy. Schools throughout the district have similar test scores and offer the same quality of education, he said.

“You would not be giving up something by going to Old Orchard Beach if parents feel that is a better fit for their child,” he said.

Curtis said implementing a pilot program will not cost the district anything because Loranger Middle School can accommodate any number of Dayton’s present fifth-graders. Old Orchard Beach High School could take 10 to 12 incoming freshmen without impacting the budget, he said.

Curtis said the committee’s proposal is not aimed at ending the district’s relationship with Thornton Academy or consolidating all students to one high school. The board will consider the issue during upcoming workshops and will welcome public comment, he said.

In the meantime, Curtis said the board remains focused on preparing the budget in the midst of uncertainty about subsidies.

“We’re looking to take our time and do a well-reasoned approach to this budget,” he said.

Staff Writer Gillian Graham can be reached at 282-4337, ext. 213.