Concerns about overworked administrators, rising costs and financially strained taxpayers set the tone for an at times tense Alternative Organizational Structure (AOS) 98 school board meeting Dec. 6. The board came to discuss the proposed budget for the 2025 fiscal year, all while grappling with uncertainty as the district restructures its financial services.

“Hard decisions have to be made at this table,” said board member Peggy Splaine, from Boothbay Harbor. “We’re doing our best and we’re trying our best to figure out what's in the children's best interest and, to some extent, what's best for their parents and the town.”

The new proposed budget shows $2,103,704 in total expenditures, a $402,624 (23.7%) increase over the 2024 fiscal year. The budget lists a $927,683 total assessment to member schools after accounting for other funding sources, a 16% increase. The board got its first look at a rough budget Oct. 30, and the latest meeting was meant to be members’ primary discussion. They are expected to vote Jan. 18.

Most of this year’s cost differences involve staffing, according to Superintendent Robert Kahler, who said administrators are stretched thin. The proposed budget includes 5-11% increases for existing staff salaries and benefits and hiring for new finance and administrative jobs.

The biggest change involves moving AOS 98 financial services in-house. In October, the district’s accountant announced it will not be continuing the relationship, as reported in the Register. According to Kahler, the district will no longer be paying around $225,000 for outside services, but the move may represent a short-term cost increase as other factors are accounted for, including salaries and over $40,000 in accounting software.

Kahler said AOS 98 will have its staff provide financial services and hire contractors as needed. The district is in the process of hiring a director of finance and a finance assistant/payroll specialist. Combined, the two jobs are budgeted to cost around $223,000 in salary and benefits. Kahler and the board also discussed a potential revenue stream if other districts need assistance through the future business office. Overall, the board voiced agreement with the need and approach for in-house finance services.

The proposed budget also includes hiring an assistant superintendent/curriculum coordinator with salary and benefits around $122,000. According to Kahler, the job-holder would help school principals focus on running their schools and supporting their staff. He said it would also help as his role focuses on repairs to CSD buildings and the long range planning committee. The proposed job was not as well received.

“With our budget last year and you throw in this year, people can't do it,” said Boothbay Harbor representative Stephanie Hawke as she referenced the recent CSD referendum. “People were very quick to say put the brakes on, and we don’t listen. We just do what we want to do, and we just keep trucking along.”

Boothbay Harbor resident Tom Perkins, speaking earlier in the meeting, voiced concern for financially struggling households. He expressed confidence Kahler could do without the assistant superintendent. Perkins said it would be the easiest cut from the budget. 

Several other board members expressed hesitancy about the proposed job. Georgetown’s Kelly James, Edgecomb’s Nichole Price and Splaine all recognized its value but agreed the timing was not right. According to James and Price, their towns are going through contract negotiations, which could raise costs. Splaine said between other budget issues and the CSD’s repair needs, "it would be hard for me at this time to make this position.” Instead, she said she wanted to focus on the needs of the central office through its reorganization, then figure out where an assistant superintendent would fit in.

However, Kahler and other board members cautioned against risking burnout and turnover by overworking administrators. Southport member Adam Harkins said the district had a similar problem with underpaid and overworked administrators who left. According to James, the gap led to significant costs to hire and onboard new staff. Kahler added, certain tasks went undone including curriculum work, reports to the state and accurate data recording. “Be aware of it for your administrators because they are stretched, and that’s sustainable for a while but it's not sustainable forever,” he said.