Education Budget Reduction Targets

INFORMATIONAL LETTER: 37
POLICY CODE: DB

TO: Superintendents of Schools
FROM: Susan A. Gendron
DATE: October 13, 2009
SUBJECT: Education Budget Reduction Targets

As state revenues continue to fall short of expectations, the State is now preparing for a potential shortfall as large as $100 million in each year of the current biennium. Governor John Baldacci today gave me and other state agency heads budget reduction targets for FY 2010 and FY 2011. I have been charged with reporting to him by October 28 on where reductions should be made.

As I have said for several months, we have been anticipating reductions at least as great as the ones in FY 2009. The budget reduction target for FY 2010, the current fiscal year, is $38,102,723. For FY 2011, which starts July 1, 2010, the target is $36,209,638. These reduction targets are above and beyond any reductions the Legislature may make as they work to identify $30 million in savings for FY 11, as was called for in the biennial budget.

These reductions will be challenging and because nearly all Department funding is General Purpose Aid (GPA) to Education, that is where most of these reductions will have to be made. There is also a possibility revenues will drop even further – both in the current fiscal year and the next. These are extremely difficult economic times in Maine and across the nation, with very difficult choices for us in the days ahead.

I and others in the Department, along with the two working groups that I am creating to address short and long-term financial strategies, will be working to further develop the recommendations from the August 28 summit on financial strategies. Please continue to be in touch with your Maine School Superintendents Association Funding Committee representatives with suggestions.

If you are interested in serving on one of the working groups, or have questions or specific recommendations, please contact Jim Rier, 624-6790 or Jim.Rier@Maine.gov.