As if the year and a half long failed negotiations with the teachers' association wasn't enough to discourage School Committee members, they got the word Monday night that they'll also be in the hole financially by year's end.

Ron Smith from RHR Smith told the committee that the carry forward from the last fiscal year, over $400,000, won't be enough to pay the nearly $800,000 in teachers' salaries for July and August. Wiscasset, like most school districts spread their teachers' salaries out over 26 weeks.

"The financial soothsayers in Augusta didn't take that into consideration when they came up with the school consolidation bill," Smith said.

"Let's say you consolidate. The first thing they're going to ask you is what your liabilities are. I've seen even bigger numbers than this. That's the conversation everyone is having now, whether it involves bus leases or contracts. These are called off balance sheet risks.

Smith said one of the proposed new school districts he knows of will be starting off two and a half million dollars in the hole.

Superintendent Jay McInitre said there are two ways to address this - build the dollar amount into next year's budget or go to a special town meeting.

As for how the school system did in 2006-2007, Smith said the committee came within $600 of the $10.4 million budget in terms of how much was spent.

After Smith's presentation, several teachers commented about the current deadlock in negotiating a new teacher's contract. The Wiscasset Teacher's Association's contract ended in August of 2006. One of the speakers was Deb Olson, who read prepared remarks (see page 12). Olson asked the school committee "to reply to our offer."

Another teacher questioned why McIntire had said in a newspaper article that the teachers are "using the students as pawns."

"I have heard some stories from parents," McIntire responded.

"What are you willing to do to bridge this chasm?" another teacher asked.

McIntire said his job is to work for the school board and the school department, and that he is being directed by the process in place.

"Hasn't the process we've already gone through been ignored?" another teacher asked. McIntire said there are more steps that need to be followed.

"Hauling teachers into court is one of those steps?" said another teacher, referring to the recent court action which has been postponed in order to give both sides a chance to work out a settlement.

At that point school committee member Doug Smith jumped in to defend the superintendent.

"This is a harsh, unfair personal attack on Jay," Smith said. "Jay has never once said a negative thing about the Wiscasset teachers - if you have an issue, you need to look at us on the board."

Smith said in a town where 41 percent of the students qualify for free or reduced lunches, it's clear the townspeople are not wealthy. Smith said many people, especially retirees, are having real problems trying to pay their taxes. He said his own taxes have gone up from $500 to $8,000 since Maine Yankee closed in 1997. Maine Yankee once paid as much as 90 percent of the taxes.

"Last year I paid $39,000 in health premiums, which have gone up over 100 percent in the last five years. We support you, but we feel the pocketbooks in this town are just not big enough…"

Smith said he sometimes spends up to 20 hours a week working on school board matters, much of it on the impending school consolidation. He said the committee "took a lot of heat" last year on the budget they presented, which was voted down at first.

"We're dealing with different economic times," Smith said.

"I want to re-direct your anger away from Jay. I'm willing to take that anger," he said.

Another teacher, Deb Taylor, rose to say she did not represent the teachers' association, but called upon "both parties to consider going to an objective body, and agree ahead of time to what ever that body decides."

"There is accountability on both sides," she said.