DYER BROOK – The Southern Aroostook Community School District board approved a 2002-03 budget of $3,559,946 Monday.

The figure represents an increase of $118,553, or about 1 mill, on the tax rate to pay for education.

The district’s annual meeting has been set for 6:30 p.m. Monday, June 10, in the multipurpose room at the Southern Aroostook Community School.

The budget increase has Candy Roy worried. As town manager for Merrill, Oakfield and Smyrna – three of the district’s six towns – she is concerned that as school costs go up, more people will be unable to pay their local taxes.

She said 23.5 percent of the taxes for Merrill, which has a population of about 250 people, remains uncollected in 2001.

The town has no business or industry, and much of its land is tied up in the tree growth program, which further reduces what the town gets back for taxes.

“A large number of people living in the town are retired with limited fixed incomes,” Roy said Wednesday by telephone. “You can tax, but if they can’t pay, it’s kind of pointless.”

In Oakfield, the Bangor and Aroostook Railroad is a major taxpayer. But the railroad is in bankruptcy and owes the town three years in back taxes, Roy said.

Foreclosures on homes also are up.

“Last year, eight homes went on the auction block in Oakfield,” she said. “I’ve seen years go by when you didn’t see that many.

“When you see homes being foreclosed on, that’s a pretty high indicator that times are tough,” she said. “Another budget hit from the school hurts.”

What bothers Roy is that there are district school board members who owe back taxes, but they don’t seem to share her concern.

“They just don’t get it,” she said.

According to Superintendent Terry Comeau, the assessments to the district towns, including Crystal, Dyer Brook and Island Falls, will all be up for next year.

The assessment to Crystal will be $204,213, up $4,459 from this year. The assessment to Dyer Brook will be $152,749, an increase of $12,707; Island Falls, $635,002, up $56,968; Merrill, $133,840, up $9,070; Oakfield, $345,124, up $27,473; and Smyrna, $173,302, up $6,382.

Looming on the horizon is the state’s budget shortfall of $180 million over the next two years. Comeau said state officials have said that things should be all right for 2002-03, but the following year of the biennium could be tough.

“We’re somewhat guarded with this because it’s the 11th hour before you know some of these things,” he said, referring to any final decision the state might make on school funding.

If the state cuts school aid too much, “there’ll be some things we can’t do,” Comeau said.

The proposed district budget includes a new position of technology administration for a person to oversee the district’s computer and related equipment.

A teaching vacancy in the elementary school and a full-time special education position are not being filled.