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Saco budget draft shows $3.2M increase; district warns local tax impact could near 12%
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Summary
At a Feb. 25 School Committee meeting, district leaders presented a preliminary budget showing a $3.2 million (5.74%) increase driven by salaries, health insurance and tuition, and said a loss of roughly 100 students and limited state aid could push the local tax impact toward about 12% without adjustments.
Saco School Committee members heard a preliminary 2026–27 budget overview on Feb. 25 that showed a $3.2 million increase, or about 5.74%, driven mainly by salary, health insurance and tuition costs.
The superintendent told the committee the district’s revenue picture also worsened because roughly 100 students have left, reducing state aid and leaving the district with only about $80,000 more in state subsidy than the prior year (the superintendent said the subsidy might have been closer to $700,000 had enrollment held). Those enrollment and revenue changes, combined with cost increases — including an estimated 10% rise in health insurance costs (about $600,000) — are reflected in the draft budget and could translate into a larger local tax impact than last year. "We are up at about we're up $3,200,000 or 5.74%," the superintendent said.
Why it matters: smaller-than-expected state subsidy and declining enrollment reduce nonlocal revenue, shifting pressure to the local taxpayer. The superintendent said preliminary calculations put the potential local impact closer to 12% in this early draft, though he emphasized the figures remain preliminary and staff have not recommended any cuts.
Board members and staff outlined the next steps. The superintendent said staff will continue to comb the line-by-line budget for coding issues and duplications, refine assumptions about salaries and benefits, and present a more polished overview at a joint meeting with the city council. The superintendent asked the committee to be cautious about making assumptions until the refined numbers are available. "So we've got a lot of work to do," the superintendent said, adding that a joint meeting with the city council was scheduled for Monday, March 16.
Clarifying details provided at the meeting included the three main budget drivers (salaries, health insurance and tuition), an approximate $600,000 projected increase attributable to health insurance, and an approximate loss of 100 students that reduced expected state subsidy substantially. The superintendent also said the district has not yet proposed cuts; staff will refine the draft and present updated material before the council meeting.
What happens next: staff will continue refining the numbers, the committee will review updated materials at upcoming meetings, and the district will present to the city council at the scheduled joint meeting for additional review and context.
