Portland Public Schools budget update: $171.7 million proposal, levy increase and medical-premium uncertainty loom

Portland Public Schools Superintendent provided an update on the district's proposed $171,700,000 budget and told the board the finance committee will vote March 24 on whether to move the proposal back to the full school board.

The proposed total includes local, state and federal revenues and is aligned to the district strategic plan, with investments the superintendent described as focused on high school music programs, elementary reading support and districtwide special education. The proposal as presented would raise the school portion of the property tax levy by 5.3 percent — an increase of 42¢ per $1,000 of assessed value — which the district calculated would increase the tax bill on a median $500,000 home by about $210 a year.

The nut graf: the district said its budget calculations are unsettled because it is still awaiting final medical benefit premium rates administered by MEA Trust. The superintendent said premiums could come in materially higher than the 6 percent increase the budget currently assumes; for non‑represented staff the employer share is uncapped, and each one percentage‑point increase above 6 percent is roughly $110,000 in additional employer cost. That uncertainty, the superintendent said, is driving discussions of potential reductions and adjustments in the proposed budget.

District officials told the committee that, if market premiums rise as reported across the state, the district could face increases far above the 6 percent the budget assumes. The superintendent said dental premiums have been finalized at a 5.97 percent increase and retirement and other benefits are also budgeted (medical: $22,700,000; dental: just under $800,000; retirement: $5,300,000). The superintendent said the district will learn the final medical premium figures in late March or early April; last year the figure arrived on April 3, during the budget reading schedule.

Committee members discussed candidate reductions the cabinet prepared in case higher premiums force cuts. One example cited to the committee was the possible decision not to add a fourth custodial float position that had been proposed in the March 4 budget book; the superintendent clarified that not adding that position would not reduce current staffing but would eliminate a proposed additional position. Board members sought and received clarification that adult education custodial coverage would not be changed by that proposed adjustment.

The budget presented also proposes using $3,900,000 from the general fund balance. The superintendent said audited financial statements will be available March 27 at a joint committee meeting when the audit report is reviewed, and that those audited figures will provide final information about the fund balance. The superintendent also said the district had identified $63,000 in expenses that the district's foundation has offered to pay; when included with other foundation support (for example, a mobile makerspace and staff support) the foundation's contribution to district programs likely exceeds $130,000, officials said.

Vice Chair Bando and Board Member Lina asked for clarifications on the custodian position and the foundation numbers. Chair Brighton presided over the update and the superintendent invited board members, student representatives and the public to join the joint city council/school board finance meeting where the budget will be presented.

Ending: The finance committee is scheduled to vote March 24 on whether to forward the proposal to the full board; the board will review audited financials and the audit report March 27. District officials said they will return to the board with final medical premium numbers once MEA Trust provides them, and any required budget adjustments will be considered in subsequent committee and board deliberations.