MADISON — The proposed school budget overall is up less than 2% over the current year, but it would come with a tax increase of about 10% due to what the district superintendent called a “perfect storm” of factors that led to a drop in state funding.

Madison voters will have their first say on the $11.98 million budget proposal for Maine School Administrative District 59 at the validation meeting set for 7 p.m. Monday at the Madison Junior-Senior High School cafeteria, 486 Main St.

Before the meeting, district leaders plan to give an informational budget presentation at 6 p.m.

Whatever total budget figure voters approve Monday then goes on the ballot for the validation referendum June 9. Polls in Madison will be open from 8 a.m. to 8 p.m. at the Old Point Avenue school, 108 Old Point Ave.

“Looking around at other districts and what they’re going through, I think this (budget) is pretty reasonable,” MSAD 59 Superintendent of Schools Ryan Arnold said in an interview Thursday.

The proposed $11,976,837.34 spending plan marks an increase of about 1.49%, or $176,337.34, over the current year.

The portion local property taxpayers fund in the proposal, however, would be set to increase about 10.12%, from $5.45 million to $6 million.

Of that total, $2.79 million are required under the state’s funding formula, while $3.14 million are considered “additional local” funds that support programs and services not covered under the state funding model.

The increase to the locally-funded portion comes as state funding is expected to decrease from $5.01 million to $4.90 million.

The state’s Essential Programs and Services formula, which will be updated for the next budget cycle after the Legislature revised it this spring, factors in several metrics to determine what a town pays for public schools.

Arnold said the driving force behind the decrease in the district’s state allocation is that Madison’s state-determined property valuation has increased significantly in recent years. State data shows the town’s valuation has nearly doubled since 2019.

The state uses a three-year average of a municipality’s property valuation as a factor in the EPS formula, intended to be a measure of a municipality’s capacity to fund schools. Arnold said the three-year average used in this year’s budget is about $494 million.

“Basically, that means, ‘Hey, your town is worth more, so you can pay more,’” Arnold said. “They give you less, and they make you pay more.”

Meanwhile, MSAD 59 enrollment has steadily declined, which is another factor in the EPS formula, Arnold said. The formula uses a two-year average of student count; right now, it is about 530 students, Arnold said.

“It’s like the perfect storm,” Arnold said. “It’s frustrating.”

The proposed budget includes using $700,000 in fund balance, down from $1 million this year.

Wages and insurance costs have also increased across the board, Arnold said.

The budget reflects six cuts to teaching positions, but adds two positions for a new behavioral program at Madison Elementary School and one for a licensed clinical social worker at the high school.

“It’s actually not a bad budget,” Arnold said. “When we first started, it was a little scary, but I found areas to cut.”