Portland Public Schools proposes $171.7 million FY26 budget, would raise school portion of property tax 5.3%

Superintendent Dr. Scallon presented Portland Public Schools’ proposed fiscal year 2026 budget on Tuesday, asking the board to refer a $171,700,000 spending plan to the finance committee and warning it would require a 5.3% increase in the school portion of property taxes — 42¢ per $1,000 of assessed value — which the presentation estimated would raise taxes for a median $500,000 homeowner by $210 a year, or about $17.50 per month.

The proposal, Scallon said, is “aligned to the strategic plan and supports outcomes for all students,” and is a comprehensive presentation of revenues and expenses across local, state and federal streams. The board voted unanimously to refer the budget to the finance committee for detailed review and public hearings.

The budget packet, Scallon told the board, lists five strategic priorities — equity, achievement, whole student supports, people (staffing) and systems — and responds to stakeholder input that generated about $24 million in new FY26 expense requests. Key targeted investments in the proposed budget include early literacy pilots and literacy specialists at several elementary schools, added special-education staff and training, a contracted review and tuition reimbursement for ESOL credentialing for multilingual learner supports, contracted strategic planning for Portland Adult Education (PAE), delayed implementation of the community schools initiative to prioritize early childhood capacity building, and two high-school music positions.

Why it matters: the package increases total district spending from about $161 million in FY25 to $171.7 million in FY26, and relies more heavily on local property-tax revenue as federal COVID-era funds and some Title allocations decline. Scallon said the district plans to use $3.9 million of fund-balance reserves in the proposal, and that a pension obligation payment that ends next year will free $2.7 million in future budgets.

Details and priorities Scallon said the district used a zero‑based exercise for non‑personnel departmental budgets and asked schools to justify every line. The district counted 6,498 pre‑K–12 students as of Oct. 1 and about 2,000 adult‑education learners; 56% of students were identified as economically disadvantaged, roughly one‑third are multilingual learners and about 30% identify as students of color. Scallon said percent of English learners rose from 24% in 2017–18 to roughly 30% most recently, and IEP rates rose from 15% to 18%.

Major FY26 proposals explained in the presentation: - Adult education: contract funding for strategic planning and recognition that PAE will lose roughly $750,000 in ESSER/COVID funds due to typical one‑year grant lags; PAE currently serves about 4,000 students with a waitlist over 1,000 and roughly 600 parents/caregivers of P-12 students. Dr. Scallon said the budget includes resources for planning and a more complete accounting of adult-education grants in the packet. - Early literacy and elementary supports: pilot funds for an “early literacy education technician” at Title I elementary schools (Talbot, Roe, Presumpscot, Ocean, East End and Reiche) at a ratio of one technician per two kindergarten classes; additional literacy specialists at two schools (East End and Reiche). - Special education: Scallon said the district completed a comprehensive review and is proposing roughly $400,000 for school‑based personnel and just under $1 million for department‑level personnel, training and related services (OT, PT). The board was told a team that completed the review would present findings later in the meeting. - Multilingual learners: the budget requests $125,000 for a contracted review of services and additional funding for ESOL credentialing and tuition reimbursement in line with a board resolution. - Early childhood/special‑education transition (CDS to district): Scallon said Maine state law shifts responsibility for special‑education identification and services for three‑ and four‑year‑olds from CDS to districts by 2028; the proposed budget adds staff time now to design capacity before the statutory transfer, but Scallon noted the state has not specified whether the state funding that now covers those services will move to districts, and said advocacy will be required to avoid a new local cost burden. - Music at high schools: the superintendent proposed dedicated music staff at Portland and Deering high schools to expand daytime music offerings and reduce after‑hours lessons, and said a single teacher split across both schools would be impractical because of scheduling differences. Public comment strongly urged two music hires and emphasized program benefits.

Revenues and assumptions Scallon walked the board through revenue assumptions: a property valuation of $15,320,000,000 and an assumed 6% increase in health‑benefit costs; a 0.75% assumed vacancy rate (about 10 positions) used as a conservative vacancy assumption; and estimates for Title and other grant revenue based on state guidance. The packet shows expected decreases in federal COVID funding and a projected drop in Title funds; local property‑tax revenue is the largest and growing share of district funding under current state funding formulas.

Public comment themes Public speakers focused heavily on music staffing, special education and adult education. - Audrey Cabral, the district’s band director and music coordinator, thanked the board for the proposed music hires and said the district’s small but active orchestra and music offerings deserve daytime expansion: “I love what I do … Passionate about music,” she said. - Abby Hutchins, Deering High School music teacher, called the current single‑teacher staffing model unsustainable and urged two music specialists at high schools. - Rachel Lawson, Portland High School music teacher, described teaching eight distinct curricula and said choral and instrumental specialties should be separate: “At the high school level … it is critical to have one music educator who specializes in choral music and one who specializes in instrumental music.” - Sarah Norsworthy, an instructor at Portland Adult Education, urged support for PAE workforce programs and noted the role PAE plays preparing adults for local careers. - Several commenters — including a Lincoln teacher and a parent of a special‑needs student — urged more investment in special education coaching and staffing, and one Lincoln resident criticized central office responsiveness to school‑level operational problems.

Board action and next steps Chair Lentz moved to refer the superintendent’s FY26 budget to the finance committee for detailed review; Board Member Yousra Ali seconded. The board conducted a roll call and voted unanimously to send the proposal to the finance committee. The superintendent and several board members outlined a schedule of finance‑committee meetings, board public hearings in April, a tentative second reading/vote on the budget on April 8 and a public referendum scheduled for June 10.

What to watch next The finance committee will review line‑by‑line details, fund‑balance use, impacts of projected benefit increases and possible alternatives should revenue assumptions change. Board members requested work at the finance committee on hypothetical reductions (for example, what a $500,000 cut would mean), a breakdown of which investments are one‑time vs. ongoing, and the tax‑rate impact (dollar effect per $1,000 of value) of different budget adjustments. Public hearings in April will accept further testimony.

Ending The board’s referral starts a multi‑week review process; the finance committee meetings and public hearings will be the next opportunities for the public to comment and for the board to consider amendments before a final vote and the June referendum.