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South Portland board accepts city's $2 million support, sets 6% tax increase to shore up budget
Summary
The school board voted to set a 6% tax-impact figure and praised a city offer to forgive up to $2 million of the district's projected deficit, while finance staff outlined one-time funds and contingency plugs and warned further work is needed to secure long-term fiscal stability.
The South Portland School Board on April 29 settled on a 6% tax-impact figure for the FY27 budget after Abigail Kechen, the district's finance director, said city council leaders signaled willingness to support up to $2,000,000 of the district's projected deficit. Board members voted unanimously to set the final percentage at 6% to be placed in contingency.
Kechen told the board the city's offer effectively clears the immediate deficit risk and gives the district breathing room to pursue multi-year fiscal stability. "Their general sentiment was to support up to $2,000,000 of our projected deficit," Kechen said, adding that the city recommended staying near a 6% impact. She also reported the district received a one-time Maine supplemental allotment of $153,000 that permitted reinstating several one-year positions.
Superintendent Dr. Entwistle urged caution and echoed city guidance. "I would agree with staying at 6% because it is so unusual to be in a situation like this and have it remediated," he said, noting the city's support is an extraordinary action. Several board members said keeping the increase at 6% was prudent in light of likely voter sentiment and the council's recommendation.
Board discussion described contingency line items still under close review. Kechen identified several plugs and unresolved figures: a $179,000 contingency line, a $250,000 placeholder for IEP meeting overtime beyond 15 hours, and moving stipends estimated at $25,000. "We just don't know yet" how much will ultimately be used, she said, committing to monthly updates and more refined estimates by mid-FY27.
The board also debated whether to set the figure higher; Member Smith initially proposed 7% but withdrew the proposal after noting city-council reservations and after members expressed concern about turnout and voter reaction. The 6% motion passed unanimously.
The meeting continued with discussion of personnel impacts and other budget actions. Kechen said the district has exhausted its fund balance and must rely on disciplined planning to avoid repeating the current deficit. "Success looks like a district focused on education," she said, describing guardrails like a minimum savings policy and tighter planning and hiring practices.
What happens next: the city council is scheduled to vote on its position May 5 and the public referendum is set for June 9. Kechen said the district will present further financial modeling, including reconfiguration cost scenarios, as the steering committee and budget work continues.
