Regional District #11’s FY2021-2022 budget was approved on its second attempt at a June 2 referendum with a cumulative vote of 304 to 265.  Chaplin was the only one of the three towns to vote in favor of the budget for both referenda, with voters in Hampton and Scotland rejecting the proposal twice. Although there were not enough voters from Chaplin for the May 4 referendum to outweigh the votes in Scotland and Hampton, at the second referendum, Chaplin overturned the votes of the other two towns.  The $6,523,372 budget increased by only $16,000 over the current year, though Hampton’s share of $1,576,639 represents a $64,132, or 4.24%, increase.

The concern which fueled the defeat twice in two towns was the district’s failure to return surplus funds totaling $556, 508. According to State statute, regional boards of education “shall use any budget appropriation which has not been expended by the end of the fiscal year to reduce the net expenses of the district for the following fiscal year”. However, audits reveal that the statute has not been followed for at least the last decade.  A letter dated June 2, 2021 and signed by the First Selectmen of all three towns, Allan Cahill of Hampton, Gary Greenberg of Scotland, and Bill Rose of Chaplin, apprised RD#11 Superintendent Kenneth Henrici and Board of Education Chairman Dennis LaBelle of the statute and the amount of the surplus for 2019-2020; after appropriating $38,000 to its capital and non-recurring fund, the school was left with a net surplus of $452,534 which was supposed to be applied to the towns’ net expenses for the current fiscal year. According to Cahill, Hampton plans on deducting our share, $100,213, from this year’s final payment to RD#11. The letter also states that the towns waive claim to $130,974, an amount which “reflects a cumulative surplus” which should be refunded to the towns, however “determining the source of this balance and the amount that is due would require a lengthy and expensive analysis”.

At the time of the referendum, there was much confusion concerning the surplus funds, with one mailed flyer urging voters to reject the budget until the surplus was returned, and another flyer circulated on social media claiming the surplus funds were returned. Superintendent Henrici confirmed that he and Chairman LaBelle “met with legal counsel and our independent auditor several times to determine the proper process for addressing the 19-20 surplus and any future surplus funds”. When the decision to return the funds was made public is unclear. Though Henrici stated that LaBelle announced the return of the surplus at the Scotland Town Meeting on May 20, the minutes of that meeting show that the question of surplus funds was raised, but the person inquiring was directed to address the matter at a RD#11 Board of Education meeting. Nor was the surplus discussed at any of the meetings of the RD#11 school board, with a motion to discuss the return of funds failing at a May 18 meeting.  However, at the June 8 meeting of the RD#11 board, Henrici announced that the school expects a $250,000- $300,000 surplus this year as well, though the funds cannot be returned to the towns until after the audit is complete.