The district spent the money on legal services related to a $2 million deficit in the $82 million school budget that ended June 30, and the resulting resignations of its superintendent and finance director.
The district's lawyers at Drummond Woodsum in Portland say they will continue to provide legal advice for the remainder of the school year at the agreed-upon flat rate of $108,000.
However, if the district, which has 7,100 students and 1,200 employees, is subjected to a lawsuit within the next nine months, Drummond Woodsum would charge for related litigation, said Melissa Hewey, a lawyer who represents the district.
School Committee Chairman John Coyne said Wednesday that he's aware the legal budget has been spent and that additional litigation would be charged to the district.
He said administrators are anticipating that unexpected costs will arise and are examining where reductions can be made in the $87 million current budget.
"We're monitoring all costs, not just legal costs," Coyne said.
School Committee member Lori Gramlich has questioned the district's arrangement with Drummond Woodsum at recent finance committee meetings. She was surprised to learn that additional court action could be charged to the district.
"If that's the case, I want to get some clear answers on this," Gramlich said Wednesday. "My understanding was that we had Drummond Woodsum on retainer and would not be charged more."
Gramlich said she wants to examine any written agreements between the district and the law firm to learn how the committee should proceed with future legal matters.
The district has no written agreement with the firm, though, according to Interim Superintendent Jeanne Whynot-Vickers. She said that for decades, the district has based its legal budget on previous annual costs and verbal agreements with Drummond Woodsum.
"Frankly, I think there should be a written contract or at least a memo of understanding," Gramlich said. "I think we should be clear about the boundaries of the services to be provided before we agree to anything."
Coyne agreed that the district should have a written agreement defining the scope of its legal representation.
Hewey said her firm provided the district with more than $108,000 in services over the past three months. The services included research into the possibility that the state Department of Education improperly accounts for federal grants that Portland receives, which turned out to be groundless, Whynot- Vickers said.
The district also called on Hewey and Harry Pringle, another Drummond Woodsum lawyer, to address personnel concerns related to the deficit; and respond to Freedom of Access requests for documents and defend a July 25 executive session, which the Portland Press Herald/Maine Sunday Telegram challenged as illegal in Cumberland County Superior Court.
As a result of the budget controversy, Finance Director Richard Paulson resigned July 30 and Superintendent Mary Jo O'Connor resigned Aug. 29.
Future litigation that could cost the district excludes the newspaper's lawsuit over the July 25 executive session. A judge ruled that portions of the closed-door meeting should have been held in public.
Drummond Woodsum is challenging the judge's decision before the Maine Supreme Judicial Court at no cost to the district, Hewey said.
The law firm also will continue to provide legal advice on budget matters, contract negotiations and other issues that don't require court-related work, she said.
Regarding other costs related to the budget controversy, Whynot-Vickers said the district spent $18,100 to have Bryan Dench, a lawyer with Skelton Taintor & Abbott...
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