Saco School Department presents $4.3 million FY‑25 draft budget; flags uncertainties over state funding and insurance costs

Superintendent Jeremy Ray presented the Saco School Department’s draft FY‑25 budget at a joint meeting with the City Council and school board, describing a $4,300,000 increase (8.25 percent) in proposed expenditures and identifying several funding uncertainties the district is monitoring.

Ray walked the council through the state funding formula that drives school subsidy, explaining that the formula uses a two‑year average of student counts, staff ratios and a set of weighted counts for categories such as economically disadvantaged students. He said the district is asking the state for a higher weight for economically disadvantaged students (the district asked for 0.25 weight, up from 0.15) and for a new 0.5 weight for students in homeless status — requests intended to reflect added classroom and transportation costs associated with those students.

Ray said the budget includes additions intended to address current needs: 1.5 English‑language‑learner (ELL) teachers and three additional education‑technician (EdTech) positions to bring staffing ratios closer to neighboring districts. He reported districtwide special‑education enrollment at just over 18 percent and ELL students at about 8.55 percent. Ray also flagged growth and class‑size pressures at some elementary schools that may require redistricting or additional positions over the next three years.

On tuition and other external charges: Ray said the Thornton Academy tuition line is set to increase about 9.57 percent next year; the district currently operates under a two‑year extension while contract negotiations continue. Ray said the regular‑education tuition figure approaches roughly $15,800–$16,000 per student when state MAT and IVF factors are included, and that special‑education and ELL services add to that cost.

Debt and fund balance: Ray said the district must make a roughly $1.1 million payment on a bond anticipation note this year; that payment is expected to be covered from Department of Education reimbursement once the bond is sold, but the timing affects how the revenue appears in the budget. The district reported a school fund balance of about $2.3 million going into the next year.

Cost pressures: Ray described health‑insurance uncertainty and a conservative assumption in the draft budget. The budget includes a 10 percent health‑insurance increase for planning purposes, but Ray said recent notices from the Maine Benefits Trust suggested an increase as high as 17 percent; a larger increase could add roughly $40,000 to the budget for every percentage point above the 10 percent assumed. Ray also said the district expects to reduce the budget by about $100,000 if the district’s paid family medical leave coverage is obtained through a private carrier rather than the state program.

Out‑of‑district placements: Ray and councilors discussed rising out‑of‑district special‑education placements and behavioral‑health needs that make local programming and staffing difficult to sustain. Ray said the district often operates with unfilled EdTech positions and that turnover and certification shortages contribute to out‑of‑district placements.

Construction update: Ray reported work on the new school site is underway — property clearing has begun and the building should be out of the ground within a few weeks; the district plans a short‑notice community visit when framing is visible.

Councilors and school board members asked detailed questions about student counts, the state funding formula, and out‑of‑district placements. Councilor Hatch and others encouraged continued attention to pre‑K, class sizes and the long‑term effects of state funding choices.

Next steps: the district will refine enrollment counts, track state budget developments (including MaineCare and other reimbursements), and return to both bodies with updated figures as the budget progresses to municipal review and voter referendum.