Councilors who were uncomfortable about setting a precedent for co-mingling town and school monies justified the transfer in two ways: the funding shortfall was for the current school year, and, the transfer would help restore a budget formally approved by the voters. 

It was the right thing to do; the town voted for a school budget, town officials should do everything they can to make sure that budget stays intact. The council approved the transfer.

In the weeks following the council’s approval of the $200,000 transfer, news came that funding from President Barack Obama’s American Recovery and Reinvestment Act would cover the curtailment.

The transfer was cancelled. Hawkins resumed compiling his budget for next year with the expectations that any other curtailment would be once again covered by stimulus dollars. Councilors who worried about the financial impacts of the transfer sighed with relief.

All was well – until last week.

Hawkins learned the state was considering decreasing Cape Elizabeth’s state aid by $500,000, this time for the upcoming school year. Once again, a majority of the council agreed to help fill the gap in state funding by transferring $200,000 – funding that never ended up covering the January curtailment – to the school. 

Not one councilor present at last week’s finance committee meeting – including Council Chairman Jim Rowe, who expressed profound concern about the transfer in January – questioned the legitimacy of transferring town funds to help cover next year’s funding shortage.

Funds to help cover next year’s funding shortage – part of a budget not yet approved by the voters.

Wait a minute.

In January, didn’t a majority of councilors agree with Councilor and Finance Committee Chairman Anne Swift-Kayatta’s opinion that co-mingling town and school money could set a dangerous precedent? In January, didn’t more than one councilor justify the transfer by saying it was supporting what voters had already said they wanted – a $19.8 million school budget?

“I don’t think we should be using undesignated surplus for school finances, but this is halfway through a fiscal year,” Swift-Kayatta had said. “There is a true urgent need of the school department.”

I understood the council’s goals in approving the January transfer. It was, I thought, a responsible thing to do as it helped keep the $19.8 million voter-approved school budget intact. It took voters three referendums to approve the funds, the town is obligated to make sure they get every penny, regardless of what the state does. 

The proposed $500,000 reduction in state funding for next year’s budget is different. Maine Department of Education Director of Finance and Operations Jim Rier said the decrease in funding is relative to an increased valuation of the town. It’s debatable whether or not that means Cape Elizabeth residents are better positioned to pay more in their property taxes, but what right does the town council have to begin supplementing a school budget that is still in the air? Will the transfer be featured on the school budget validation referendum ballot in May, or will residents be asked to approve a budget $200,000 short and wait for the council to fill in the gaps?

In moving forward, the council needs to realize that their actions in January and those proposed for the 2009-2010 budget are like apples and oranges. – Nate Jones