Saco School Committee Reworks Budget for Health Insurance and Capital Projects

The Saco City Council meeting held on May 5, 2025, focused on the proposed budget for fiscal year 2026, with significant discussions surrounding financial adjustments and future planning for the school district.

The meeting began with a review of the proposed budget, where discrepancies between the initial presentation and the resolution were noted. The proposed budget was initially presented at $56,529,672, but the resolution indicated a total of $57,274,090, leading to questions about the $750,000 difference. Council members sought clarification on these figures, particularly regarding changes in health insurance rates and other budgetary adjustments.

The school committee explained that the health insurance rate had increased from the anticipated 10% to 13.5%. To manage this increase without raising taxes, the committee decided to utilize additional fund balance resources. They identified one-time costs that could be covered by this fund balance, including the removal of certain positions related to English Language Learner (ELL) services, which would be contingent on the number of ELL students following the closure of a local hotel.

Further discussions highlighted the committee's collaboration with city officials on capital projects, with concerns about potential impacts from tariffs on technology purchases. An additional $150,000 was allocated from the fund balance for capital items to mitigate these uncertainties.

A notable advancement discussed was the implementation of a new speaker and intercom system designed to aid students who speak different languages. This system will allow for real-time translation of the teacher's instructions, enhancing the learning experience for non-native speakers.

The committee also reported progress in Medicaid billing, projecting over $850,000 in revenue, with nearly $700,000 already received. This positive financial outlook is expected to bolster the school’s fund balance to over $1.7 million, allowing for future capital projects, including renovations at Saco Middle School.

In conclusion, the meeting underscored the school committee's proactive approach to managing budgetary challenges while planning for future needs, all while maintaining a commitment to minimizing tax increases for the community. The council's discussions set the stage for continued financial stability and improvements in educational resources.