Schools may seek advice on tax cap SADs consider hiring Portland law firm

School systems across the state may band together to hire a Portland law firm to examine how they would be affected by a controversial 1 percent tax cap proposal that will go before voters in November.

During the next 10 days or so, superintendents will ask their boards to consider hiring the law firm Drummond, Woodsum & MacMahon to investigate the legal and financial impact on school budgets and programs if the so-called Palesky proposal is approved Nov. 2, Mark Eastman, superintendent in SAD 17 [Oxford Hills area], said on Wednesday.

Eastman, who helped launch the group effort, said superintendents need clarification on the law because they are obligated to answer questions from their constituents “based on the best information.” In addition, superintendents should be prepared for the repercussions if the proposal passes.

“We need to understand the consequences September 1, rather than December 1, when we’ll be heavily into the budget process,” he said.

Besides the Oxford Hills district, school systems in East Machias, Ellsworth and Brunswick also have given the go-ahead so far, Eastman said. He anticipates that 40 or 50 school systems ultimately will sign on “based on the number of conversations I’ve had.”

The total cost of hiring the law firm could run as high as $35,000 to $40,000 or about $500 or $1,000 per school system, according to Eastman. The firm deals primarily with school law.

“It’s something that one school system couldn’t do, but when you get a big pool it’s not a huge budget item for any one school district,” he said.

Hoping that a legal opinion could be issued by mid-September, Eastman said the clock is ticking. “There’s some urgency here to understand what this is going to mean for kids and for our school systems,” he said.

The law firm would be asked to clarify “constitutional questions” raised by the proposal, Eastman said. For example, as a government entity, would a school administrative district be able to raise 10 mills – or 1 percent – of the value of real or personal property the same way a municipality could?

Other questions could involve how the potential loss in revenue would affect federal and state accountability mandates and how the remaining money would be divided between a community and school system. Also, how does the June vote approving the 55 percent state share of educational funding come into play?

Eastman called the movement “an investigation” rather than “a lobbying effort.”

But if the tax cap proposal turns out to have “dire consequences for students and for municipalities. … I’m going to make that known. If that’s lobbying, that’s lobbying,” he added.

Citing escalating education expenses and the decrease in enrollment, Phil Harriman, a volunteer with Tax Cap Yes, said school systems instead should “use their collaboration to focus on keeping our teachers in the classroom first and implement ways to reduce costs.”

Brunswick superintendent James Ashe said his board gave the go-ahead last week.

“I want to be able to be prepared if this passes so I know how to put a budget together and [deal with] employees and programs,” he said.

Rick Lyons, superintendent in SAD 22 [Hampden area], said he expected that his board would endorse the effort when it meets next month.

“I think school boards will be obligated to disseminate appropriate information to our taxpayers and citizens,” he said.

Bangor won’t be joining the effort, said Superintendent Robert Ervin, who contended that making judgments about the proposal is the attorney general’s responsibility.

“What is far more important to me at this time is the devastating effect the Palesky proposal will have on the Bangor School Department,” he said. “Matters of constitutionality will pale compared to the financial and legal chaos that will follow.”