Portland Public Schools Faces Budget Challenges Ahead of FY 2027

Superintendent Ryan Scallon outlines decreasing enrollment, rising costs, and the need to tap into reserve funds to balance the upcoming school budget.

Published on Feb. 10, 2026

Got story updates? Submit your updates here. ›

Portland Public Schools Superintendent Ryan Scallon held a public forum to kick off the budget process for the 2027 fiscal year. Scallon highlighted several key challenges the district is facing, including decreases in student enrollment and state funding, as well as rising costs for items like a new math curriculum and debt service. To bridge the gap, the district may need to draw more from its general fund balance than in recent years.

Why it matters

Portland's school budget is a critical issue for the community, as it determines funding levels for key educational programs and services. The superintendent's presentation outlines the difficult financial realities the district is navigating, which could lead to tough decisions around priorities, staffing, and property tax increases.

The details

Superintendent Scallon noted that decreases in overall student enrollment, multilingual learners, and economically disadvantaged students will result in less state funding through the Essential Programs and Services formula. Additionally, a 15% increase in the city's property tax valuation will require the district to rely more heavily on local property taxes. Scallon highlighted three major expenses putting pressure on the budget: costs from a MainePERS audit, a new math curriculum estimated at $300,000-$400,000, and $400,000-$500,000 in debt service. While the district is benefiting from the payoff of previous pension debt, Scallon cautioned against replacing those one-time savings with recurring costs.

  • The superintendent's formal budget proposal is set to be released on March 10, 2026.
  • The city of Portland began its own budget process last week for the upcoming fiscal year.

The players

Ryan Scallon

Superintendent of Portland Public Schools.

Lesa Beck

Senior Director of Finance for Portland Public Schools.

Danielle West

City Manager of Portland, Maine.

Got photos? Submit your photos here. ›

What they’re saying

“Which means that the local property taxes will have to bridge that gap in order to cover the cost of inflation, cost of salary increases that are contractually required, as well as any other desired additions.”

— Lesa Beck, Senior Director of Finance (pressherald.com)

“These large expenses are significant, and they impact our purchasing power when it comes to other things that we want to do. And I think we're in a space where we can't not do them.”

— Ryan Scallon, Superintendent (pressherald.com)

“We have to be careful that we don't replace one-time savings with reoccurring costs.”

— Ryan Scallon, Superintendent (pressherald.com)

What’s next

Scallon's formal budget proposal for the 2027 fiscal year is set to be released on March 10, 2026. The city of Portland has also begun its own budget process for the upcoming year, which could impact the school district's funding.

The takeaway

Portland Public Schools is facing a challenging budget cycle for fiscal year 2027, with decreases in state funding, rising costs, and the need to carefully manage its reserve funds. The superintendent's presentation highlights the difficult tradeoffs and decisions the district will need to navigate in the coming months to balance its budget.