Newport School Budget Proposal Raises Taxes, Faces Likely Cuts

The Newport School Board approved sending a $22.9 million proposed operating budget to the Budget Advisory Committee on December 8, while making clear the figure is not final and additional reductions are expected. The proposal represents a $2.4 million increase, or 11.2 percent, from the current year and, as presented, would raise the school tax rate by an estimated $3.93 per $1,000 of assessed valuation. Board members said the package must be refined ahead of public hearings in January and the annual school meeting in March.

SAU 43 Business Administrator Kate O'Connor identified rising health insurance premiums, salaries and contracted services for special education as the main drivers of the increase. Statewide medical and dental insurance rates are rising 20 percent or more, and Newport faces higher exposure because more staff are enrolled in insurance and the district employs more staff overall. The second year of a four year teachers contract adds $208,000, and the second year of a three year support staff contract adds $79,900 to personnel costs.

Board members have already trimmed $300,000 from the administration proposal and made further reductions during the December 8 meeting, but uncertainty remains about voter acceptance of the projected tax increase. The proposed default budget, the fallback if voters reject the board plan, stands at $22.56 million, up $1.9 million or 9.27 percent, and would add an estimated $3.17 to the school tax rate.

Board member Melissa Mitchler noted the board can still pare spending, saying, "We can approve this tonight as it is and still make cuts." The board scheduled a public hearing for January 8 and a deliberative session for January 31 to allow further public review and refinement. Selectboard member Jeff Kessler urged the Budget Advisory Committee be engaged as early as its December 11 meeting to review projections.

For Newport households already managing tight budgets, the proposal underscores difficult tradeoffs between tax relief and maintaining educational and special services. Rising insurance and contract driven costs limit managerial levers in the short term, which will put pressure on program decisions that affect students with the greatest needs. Voters at the March meeting will ultimately weigh those tradeoffs for the entire community.