Portland Public Schools lays out FY2026 budget path; board to review proposal March 4

Superintendent Scallon presented an overview of Portland Public Schools’ proposed fiscal 2026 budget and process at a public forum, emphasizing the district’s reliance on property tax revenue and the role of community input in shaping spending. "A budget is not created in isolation," Superintendent Scallon said as he outlined revenue, major cost pressures and the timeline that leads to a March 4 draft budget presentation and an April 8 board vote.

The presentation matters because Portland Public Schools must balance rising personnel and benefits costs, special education needs and an uncertain federal funding outlook while relying primarily on a local property tax levy. Board Member Fatuma Noor, chair of the Public Affairs Committee, told the forum that "public input is not only welcome but essential" to the multi‑month process.

Scallon told the board and the public that the district’s overall budget for the year is about $161,000,000, of which local property taxes account for roughly $119,400,000. Salary and benefits make up the largest share of operating expenses (about 70–78 percent depending on the accounting slice Scallon showed). The superintendent laid out a timeline: staff will present a proposed budget March 4, finance committee and board deliberations will follow in March and April, the board expects to vote April 8, the city council’s estimated approval is May 19 and a public referendum is currently scheduled for June 10. Scallon cautioned the dates, particularly the council vote, are estimates.

On revenue, Scallon said the state subsidy tied to Maine’s EPS (Essential Programs and Services) formula is projected to rise by about $591,000 (2.5 percent), a gain that he characterized as below inflation and below the district’s rising cost to educate students. He summarized how the EPS calculation compares estimated operating costs to a district’s measured ability to pay (largely driven by property valuation) and noted Portland’s share of state funding remains a small fraction of total operating cost; the state subsidy percentage in Scallon’s slides was shown as about 18.21 percent of the state’s calculated cost for Portland.

The superintendent described local property tax mechanics and impacts, showing a $119.4 million tax levy and a $7.88 mill rate for FY2025. Using an illustrative $500,000 median assessed home, Scallon said a 1 percent increase in the school portion of the mill rate would raise about $1.2 million and increase that homeowner’s annual bill by about $39.42. He noted the district cannot add local fees or alternate local revenue streams and depends primarily on property taxation.

Scallon identified several budget pressures and opportunities: projected salary increases tied to collective bargaining (an illustrative 5 percent average increase in contracts would cost roughly $6 million), rising benefits and debt service changes tied to existing bonds and a one‑time fund balance the district can use for targeted investments. He said the district budgeted to use roughly $3.58 million of fund balance this year and currently anticipates an estimated general‑fund balance of about $13.8 million going into the FY2026 process; those figures are preliminary pending audited financials.

Special education and MaineCare (Medicaid) recovery also drew attention. The district contracted the District Management Group for a special education review; Scallon said the final report will arrive before the March 4 proposed budget and that targeted, phased investments in special education are likely. On MaineCare reimbursements, Dr. Warren said: "The $132,000 is year to date, as of December," and added staff are improving billing processes and pursuing recoveries for occupational and physical therapy where recoupment is straightforward.

The finance committee has asked staff to analyze nine focus areas during the budget process, including crossing guards, middle school career and technical education, ESOL credentials, expanding the Make It Happen volunteer corps, summer school, changes made in FY24–FY25, visual and performing arts, and general education educational‑technician positions (with a specific look at special education ed‑tech coverage). Scallon said those topics and the strategic plan’s five priorities (Equity; Achievement; Whole Student and Connected Community; People; and Systems) will guide proposed investments.

Public comment at the forum emphasized recurrent community concerns: restoring or adding music teachers and broader fine‑arts staffing in middle and high schools, expanding ed‑tech support in classrooms, strengthening behavioral and mental‑health supports, addressing building and facilities needs (including basic supplies and drinking water at some schools), and recognizing local tax‑relief programs for lower‑income and senior homeowners. Multiple speakers urged the board to coordinate with Portland City Council on tax‑relief programs (P STEP) and with the state on EPS formula reform rather than relying solely on cuts.

Speakers who appeared during the forum included board members and school staff, the finance team and more than a dozen public commenters. The superintendent invited the public to submit input ahead of the March 4 presentation and reminded attendees that a formal proposed budget would not be released until that date.

The forum produced no formal board votes. Staff directions recorded in the presentation and discussion include continued work on the March 4 proposed budget; completion and review of the District Management Group special education report before March 4; continued MaineCare billing process improvements and targeted staffing to increase recoveries; and the finance committee’s directed analyses of the nine focus areas before the board’s formal deliberations. No binding policy changes or appropriation decisions were made at the forum.

Looking forward, the board and staff will weigh personnel costs (including contract negotiations), recommended special education changes, potential one‑time uses of fund balance, and federal funding uncertainties as they finalize the proposed FY2026 budget. The district encouraged the public to participate in the upcoming hearings and to submit written input before March 4.