Portland Public Schools committee reviews $179.9 million FY27 budget; proposes 7.3% tax increase, targeted investments and vacancy-driven reductions

The Finance, Personnel and Operations Committee of Portland Public Schools met March 9 and heard Superintendent Dr. Scallan outline a proposed FY27 budget totaling $179.9 million and the tight calendar for approval.

Dr. Scallan said the proposal would raise the school portion of property taxes by 7.3% — 46 cents per $1,000 of assessed value — which she estimated would increase a median homeowner’s bill by about $261 a year. She framed the district’s fiscal position as affected by what she called “three strikes”: declining enrollment, rising property valuations and the mechanics of the state funding formula, a combination she said reduced state aid to the district by roughly $4.0–$4.1 million this year.

Why it matters: the budget balances competing priorities. The administration proposed strategic investments tied to the district strategic plan while also identifying reductions, largely focused on vacant positions, to offset revenue pressure and benefit‑cost increases.

Key proposed investments and assumptions

Dr. Scallan described several priority investments in the FY27 proposal: creation of a cabinet-level position focused on partnerships and community programming; expansion of early-literacy ed technicians into first grade at three schools; adoption and deeper implementation of new math curriculum at middle and high schools; a 0.5 FTE to support Wabanaki and local Black history curriculum work; an additional middle-school music teacher; expansion of pre-K programming for four-year-olds (she said that expansion should be fully reimbursed by the state); a civil-rights officer and an equity audit; and increased leader-development funding.

The administration used several assumptions in building the proposal: represented salary adjustments per existing contracts, a 3% increase for non‑represented staff, a 9% assumed increase in health-benefit costs, a high vacancy assumption used for modeling, and a district-wide 2% non-personnel / 5% school supplies planning parameter for school budgets.

Reductions and staffing approach

Rather than proposing widespread layoffs, the administration prioritized reductions at positions that are currently vacant. Scallan identified a set of central-office vacancies (for example, an IT position, an enrollment specialist, an HR analyst and others) and school-based vacancies (including three high-school ed techs, a middle-school reading specialist and multiple special-education ed tech positions). She said staff will attempt reallocation and adjustments to avoid job losses where possible and noted some special-education and related-service roles remain difficult to recruit for, which has required contracting in prior years.

State funding and LD 2226

Scallan explained the state funding formula’s two parts — the operating allocation tied to enrollment/demographics and the state’s calculation of local contribution tied to property valuation — and said Portland’s enrollment fell about 2.9% overall (7% for low-income students and 8% for multilingual students), while the state’s measure of local property valuation rose roughly 15%, both of which reduced state aid. She said the legislature is considering revisions (LD 2226) that could adjust regional cost factors and increase weighting for low‑income students; any change likely would take effect in FY28.

Cliff Island, tuition and transportation costs

Committee members questioned the administration about Cliff Island, which currently educates two students with a district budget of about $123,000 for the school. Scallan said closing Cliff Island was not included in the proposed budget but estimated net savings of roughly $63,000 if the board later chose closure and the district provided tuition to island schools (she said the administration estimated tuition at about $30,000 per student based on state-set rates and the district’s current tuition payments to nearby island schools). The board discussed transportation complexities and parental choice and were told any closure would require board direction and family engagement.

Capital improvement request and city process

The presentation also covered the district’s capital improvement request (about $5.8 million requested), which district staff said city staff reduced to $3.5 million in its initial review. The projects trimmed included HVAC work at Lincoln and Portland High School and drainage work at PATHS. The city finance committee moved an amendment to restore the full request; the city council first read was scheduled for March 16 and a vote in April. Scallan outlined alternatives if municipal bonding were not approved (lease‑purchase agreements or ESCOs), while noting municipal bonds are typically the most economical.

What the committee asked for next

Members requested follow-up detail on several items, including the composition of supply increases at specific schools, benefits cost updates (the district expected final health‑benefit rates in mid‑April), school-by-school FTE clarifications, and a deeper review of special-education staffing and middle-school models. Scallan and finance staff (Lisa Beck and Heather Peters) agreed to provide those breakdowns to the committee.

No formal budget vote took place. The full FY27 budget is scheduled for presentation to the full board the following day and to return to committee for possible amendments and a vote on March 23. The committee adjourned by unanimous visual show-of-hands at 7:17 p.m.

Representative quotes

“The proposed budget that you’ll see tomorrow is aligned to the strategic plan and support its outcomes for all students,” Dr. Scallan said while presenting the top-line figure. “The overall budget is $179.9 million.”

On the funding decline, Scallan said the district has “three strikes against us” — enrollment declines, rising property valuation and how the formula calculates local contribution — and added that potential legislative changes (LD 2226) could shift resources beginning in FY28.

Next steps

The full board will receive the detailed FY27 presentation on March 10 and the committee expects to consider amendments and vote March 23. Staff committed to supplying follow-up detail on benefits, school-level supply changes and the specific staffing trade-offs cited during the discussion.

(Reporting based on the Portland Public Schools Finance, Personnel and Operations Committee meeting, March 9, 2026; all quotes and details are drawn from committee remarks and staff presentations.)