Portsmouth schools face $1.94 million shortfall; board weighs cutting STARBASE, dual-language and alternative programs

Portsmouth Public Schools officials told the school board on May 22 that the division enters fiscal 2025–26 with a $1,943,454 budget shortfall and is weighing several program reductions to close the gap.

Superintendent Dr. Bracey described the staff process for identifying possible cuts and said the division prioritized minimizing harm to core classroom instruction. “At its simplest, we looked at supplementary offerings or programs in our budget that will not impact any foundational instruction delivered into our classrooms,” he said.

School finance staff presented three broad options the Portsmouth City Council offered after approving the city’s FY25–26 operating budget on May 13: use attrition savings from vacant positions, borrow roughly $1.9 million from the city’s fund balance and repay it with unencumbered funds later, or direct the school division to pick cuts to balance recurring costs.

“Mister Falk” (staff member) warned against using one‑time or unspent funds to cover recurring expenses. He said such a practice would create a structural deficit because the recurring costs would remain in later years if no new recurring revenue is found. “It’s not a good budget practice or manageable budget practice to use one‑time funds to cover a deficit from year to year,” he told the board.

Officials outlined program‑level savings that could close the gap or reduce it substantially. The proposal and figures presented to the board included: - Dual Language Immersion (DLI): 41 students enrolled this year; eliminating the program would save about $732,000, according to staff. - New Directions alternative education center: typically about 100 students; moving students to a virtual environment instead of operating the center was estimated to save more than $1,370,000. - STARBASE Victory (STEM experiential program): staff estimated the program costs the division about $850,000 annually and said reevaluating it could save roughly $300,000 in mobile classroom costs at Victory Elementary. - Communities in Schools partnership: estimated savings of $200,000 if discontinued. Staff also identified smaller savings options such as reducing middle school sports, after‑school activity transportation and security, and performing‑arts field trips.

The board and staff repeatedly emphasized the division’s limited fiscal flexibility. “We’re fiscally dependent. We’re dependent on other governments to provide funding for us. We can’t generate our own funds,” Falk said, explaining the constraints of local school finances.

Board members pressed staff on whether the division could use unspent or encumbered funds. Staff explained that encumbered funds are contractual obligations (orders or contracts not yet fulfilled) and cannot be reallocated without following the required procedures, including city council approval for end‑of‑year encumbrances.

The budget presentation also noted several contingencies that could change the revenue picture before final decisions: an ongoing federal ESSER (Elementary and Secondary School Emergency Relief) appeal that could restore previously expected grant funds, and the state’s FY24–25/25–26 school funding calculation tool (referred to as CALC2), which staff said the state expects to release in June. Falk said the ESSER appeal and the CALC2 results would affect how much unspent money, if any, would be available.

The board heard public comment on the potential cuts. Belisa Downey Hood, executive director of STARBASE Victory Inc., asked the board not to cut the program, arguing it is a 23‑year partnership that supports hands‑on STEM learning and local workforce development. “This program brings learning to life,” she said, adding that experiential STEM education “shows higher levels of engagement, better academic performance, and [students] are more likely to pursue STEM fields.”

No formal vote on program eliminations occurred at the meeting. The item was presented as a budget update and discussion; board members asked questions and received clarifications but did not approve specific cuts or motions to implement any of the options presented. Staff said they will continue to refine projections as the ESSER appeal and state calculation tool results are received.

The board was also told that, under an existing arrangement with the city, returned year‑end funds of up to $7 million per year can be placed into a capital improvements (CIP) fund; staff remarked that returning funds does not automatically mean they can be reallocated for recurring operating costs. Superintendent Bracey and staff said they will continue work with the city and monitor state and federal developments before bringing any formal recommendations back to the board.