HOWLAND, Maine — A vast majority of voters approved on Tuesday night SAU 31’s application for a $1.1 million loan to save the school unit from a financial crisis caused by mismanagement and a lack of oversight.
The 304-30 vote at Hichborn Middle School approving the Maine Municipal Bond Bank loan is, to Superintendent Michael Wright, the best sign yet that voters would approve the loan in a special districtwide referendum on Jan. 24.
Referendum voters must approve the loan for the bailout to work, Wright said.
“It was to me encouraging and gratifying to see that there was that much support for a plan that has involved an awful lot of work,” Wright said Wednesday. “I left there feeling very encouraged that we can continue to move forward.”
“I’m hoping that we have the same level of support and that people understand that they have to get out and support it once again and not take last night’s vote as a sign that everything is all set,” Wright added.
Tuesday’s vote followed a public hearing at Hichborn on Monday in which many residents voiced anger at the SAU 31 board of directors, which serves residents of Burlington, Edinburg, Enfield, Howland, Maxfield and Passadumkeag, and former Superintendent Jerry White for helping create the problems Wright found when SAU 31 joined with his SAU 41 last summer.
A review of SAU 31’s records revealed, Wright said, that school leaders gradually had created the deficit by projecting revenues from undesignated fund balances that never actually occurred.
The bond bank’s executive director, Robert O. Lenna, credited school leaders with dealing adroitly with the financial miscues when he announced the bank’s tentative loan deal on Dec. 5.
Besides Wright becoming superintendent and the layoff of 14 ed techs and three maintenance workers, the school district has a new business manager and appointed new board leadership.
Creditors still are owed about $1.03 million in past-due bills and could seize property and other SAU 31 assets, Wright said.
Among the district’s bills: about $580,000 for everything from medical insurance to school supplies, and a tax anticipation note of $450,000 owed to Bangor Savings Bank that was past due as of Dec. 8, Wright has said.
“There were a lot of people who spoke out in opposition of the whole scenario, the deficit, and they expressed their anger and frustration on Monday night,” Wright said. “I really did not know how large that group would be on Tuesday night and, frankly, when they packed the room I didn’t know until the vote took place how it was going to go.”
The school system has paid Bangor Savings its interest but not the principal. The bank and vendors have been very patient with the school system, especially given the state of the economy, but that won’t last much longer, Wright said.
The special referendum will occur in the district towns from 8 a.m. to 8 p.m. Jan. 24.
Why are the school board members not being held responsible? Maybe they should put up their houses as collateral for the bond?
Board votes to allow this spending should be personally responsible.
debt slaves voting for more debt…no surprises there
They ran out of Other people’s money so now they’ll have to use their own to pay it back.
Bet they tighten up the finances now, Eh?
Anyone tried to sell an old schoolhouse. Well they don’t seem to bring much so let it go bankrupt and continue on freash.
Voters falling for “The world is going to end if you do not do this” argument.
I’d like to know if anyone there has actually taken steps to get the budget and SPENDING under control.
This school district is in trouble regardless of whether or not they vote for this “bailout”. Their enrollment continues to drop and communities within the district continue to jump ship and become members of other districts.
Enrollment at most schools north of Bangor have been decreasing, some have recruited globally but the trend is not to SAD31 only. The bills must be paid irregardless. We will see many more school districts in the same predicament this year.
Cool heads prevailed during the vote. We will get back on track, put this behind us and have oversight in the future.