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Finding #17 — NeuroRestorative Revenue Cliff: $254K Narragansett Modular Reimbursement Has No Connection to NR

Severity: critical · Category: neuroRestorative · Last updated: Feb 27, 2026 · Dollar amount: $455K

Summary

The $455K revenue reduction bundles $254,918 in Narragansett modular building reimbursement — which has nothing to do with NR — alongside the actual NR revenue loss. NR's hidden MaineCare cost was never disclosed.

Detail

The FY27 budget presents a ~$455,000 revenue reduction in the context of the NeuroRestorative wind-down. Only $200,000 is NR-related:

• NR direct payments: $150,000 → $50,000 (−$100,000) • Child Development Services: $100,000 → $0 (−$100,000) • Narragansett modular building reimbursement: $254,918 → $0 (−$254,918) — NOT NR-related

The $254,918 is a Maine Department of Education five-year capital reimbursement for the Narragansett modular building that expired on its own schedule, independent of the NR program. The true NR revenue impact is −$200,000.

Impact

$254,918 misattributed; $43K/year MaineCare subsidy reduction never disclosed

Source

Document: FY27 Budget Brochure + FY26 Budget Validation Referendum + FY27 Budget Book
Reference: Brochure: Revenue Table · Budget Book p.35 — Essential Programs and Services Funding Changes ($254,918 modular reimbursement expired) · p.77 — Special Education

Verified sources

• Maine Department of Education — School Facilities Capital Reimbursement Program — The $254,918 Leased Space Reimbursement line was verified as a standard Maine Department of Education five-year capital reimbursement for the Narragansett School modular building — not a NeuroRestorative-related revenue source. This reimbursement expired on its own schedule independent of the NR program wind-down.
• Maine Department of Education — General Purpose Aid (GPA) & MaineCare Offset Rules — The ~$43,000/year hidden MaineCare offset (approximately 37% of NR's ~$115K/year MaineCare billing) is a function of Maine Department of Education's General Purpose Aid subsidy calculation rules, which reduce a district's GPA allocation based on MaineCare revenue received. This mechanism is not disclosed in any Gorham…

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