Boothbay and Boothbay Harbor voters approved the first of two public votes for the Community School District (CSD) proposed $11.4 million budget for the 2026 fiscal year. At the annual budget meeting May 7, around 50 residents passed the 18-article warrant by wide margins. 

All warrant articles passed without amendment, and most without debate. However, residents often asked for clarity on line items and why costs have increased. Alternative Organizational Structure (AOS) 98 Superintendent Robert Kahler said many of the increases were due to negotiated staff benefits and salaries. In previous meetings, Kahler also said the budget increased due to rising costs in goods and services.  

The $11,407,413 budget is an $891,768 (8.5%) increase from 2025. There will be a budget validation referendum Tuesday, June 10 before it is finalized. Boothbay is responsible for $7,737,805, about 68% of the cost allocation, and a $560,186 (7.8%) increase from last year. Boothbay Harbor is responsible for $3,704,756, a $306,890 (9%) increase from last year. The budget is also funded by $2,245,042 in revenue, including $1,360,990 in tuition and $789,052 in state subsidies.

Newly elected CSD School Committee member Tom Perkins spoke up several times to recommend that departments or positions, including talented and gifted and facilities management, be placed at the AOS 98 level. Several CSD services are shared with, and billed out to, outside towns. Perkins said he thought it would be fairer to CSD taxpayers if they were moved to share costs across towns.

In January, the AOS 98 board decided to absorb the office of technology into their budget over the next two years, reflected in this budget. The cost was formerly in the CSD budget, reimbursed as needed by other towns.  

Resident Ruth Macy, a former school committee member, said she was “distressed” by how much legal fees have increased since 2019. The FY26 budget includes $30,000 in legal fees, a $15,000 (100%) increase from last year.  

Macy also raised concerns about members of the Board of Trustees who are seeking outside legal advice on their roles and responsibilities, as reported in the Register. She suggested board training would be more effective and efficient.

"The expense and legal fees, I would say, is not a result of the work that the trustees are having done. There's a cost for it, but they're being very mindful of it. It's because of other factors, which I think most people are aware of," Kahler responded. There is ongoing legal action around the $30 million school renovation project.

Answering a question from Macy, Kahler said he does not know if legal fees will be recouped if the district wins.

Kahler also clarified that the FY26 budget does not include the $30 million renovation bond or the recently passed $1.6 million repair bond.