Saco School Board votes to submit revised budget to city; officials outline fund-balance, Medicaid receipts and building-site plans

The Saco School Board voted 5-0 on April 30 to submit a revised revenue-and-expense budget to the City of Saco that, according to district officials, preserves staff positions while relying on carryover funds and increased Medicaid revenue projections.

Superintendent Ray, presenting the budget overview, said the district expects to use $450,000 in carryover funds, add roughly $117,000 to offset health-insurance increases and set aside $140,000 as a contingency. "We still would have about $1,700,000 left in our fund balance," Ray said, and added that the district billed more than $800,000 in Medicaid services in April and received roughly $673,000 of that amount; he said he increased projected Medicaid revenue for next year to reflect the receipts.

Ray described the budget package as a way to stay close to the district's goal on tax impact: "With this budget and with these kinds of uses of fund balance that we talked about last time, we will still come in with the city at a 1.1% increase combined," he said. The board's motion to submit the revised revenue-and-expense budget (dated 04/30) to the city council — which incorporates the health-insurance changes and certain capital projects — passed by roll call 5-0.

Beyond the operating numbers, Ray provided a building-site update: land-clearing work is done though trees remain to be hauled off, and the district is preparing to repay school-department and city costs incurred before the bond anticipation note. Ray said discussions with the project's construction partner, Oak Point, are ongoing to anticipate pricing or tariff impacts that could require value-engineering or design adjustments.

Board members asked clarifying questions about several line items. School Board Member Roach pointed out a typo in the memo (a fiscal year listed as "2028") and asked whether a repayment to the city for the property would reduce the $1.2 million the district expects to owe on school construction. Ray said the city originally paid about $1.5 million for the property, the state will reimburse up to $1,000,000 under the prior agreement and the city covered the remainder; Ray also said the repayment to the city will be handled through the bond anticipation note rather than the school operating budget.

The board was reminded the combined budget review is scheduled for May 5 and the budget approval vote is set for May 12.

Votes at a glance: The motion to submit the revised revenue-and-expense budget to the city council passed by roll call vote, 5-0.