Portland Schools Seek $5.9M in Capital Projects as Budget Season Begins

As Portland prepares for its annual budget season, the city’s school department has proposed nearly $6 million in capital improvements aimed largely at keeping aging buildings operational, while officials also confront the potential loss of millions in state education funding.

Superintendent Ryan Scallon recently outlined the school department’s capital improvement requests, totaling $5.9 million, and focused primarily on maintaining “safe, warm, and dry” learning environments across Portland’s schools.

Many of the proposed projects address aging infrastructure and building systems that district officials say are nearing the end of their useful lives.

Among the most urgent projects is a $400,000 replacement of a faulty exhaust system at Portland High School. According to school officials, failures in the existing system have forced the school to evacuate three times in the past two years.

The proposal also involves substantial investments in heating and ventilation systems throughout the district, along with building repairs and safety upgrades.

Infrastructure Needs Across the District

Several projects target long-standing maintenance needs, including:

$2.2 million for districtwide HVAC system upgrades, informed by facilities condition data and maintenance records.
$1.55 million for a heating and ventilation unit replacement at PATHS, the region’s vocational school, where updated building codes require a system capable of delivering 100 percent fresh air for technical classrooms.
$750,000 for masonry repairs and front steps at Portland High School’s Chestnut Street entrance, where uneven stairs present trip hazards.
$500,000 for security camera upgrades across multiple schools.
$250,000 to replace the gym roof at Lincoln Middle School, which was delaminated in late 2025.

Additional smaller projects include accessibility renovations at Peaks Island School, replacement doors at Deering High School, and infrastructure repairs in PATHS’ automotive garage.

To offset some of the new expenses, the school department plans to reallocate approximately $1.1 million in unused funds from previously approved capital projects that were completed under budget or deemed unnecessary. This reallocation will decrease the amount of new borrowing needed for the capital plan.

Questions About Long-Term Investments

Some projects have already drawn questions from city leaders, particularly those involving proposed facility upgrades whose long-term future remains uncertain.

Mayor Mark Dion recently raised concerns about a $1.8 million HVAC investment at Lincoln Middle School, asking why the city should invest heavily in a building that may not remain part of the district’s long-term facilities plan.

Scallon acknowledged the uncertainty but said the upgrades may be unavoidable.

Without the HVAC improvements, he said, the building would likely become uninhabitable within two years. The district is still evaluating potential long-term uses for the facility, including converting it into a middle school, pending the outcome of a broader facilities review.

Potential Loss of State Funding

The capital proposals arrive as Portland Public Schools face a possible decline in state education funding. During a February meeting of the School Board’s Legislative and Nominating Committee, district officials said Portland is currently projected to lose about $4 million in state education funding under a revised state reimbursement formula.

Scallon told board members the district plans to update data submitted to the state’s funding system in hopes of reducing the projected loss.

State education subsidies represent a significant portion of the school department’s operating budget, meaning any reduction could have ripple effects on both the school budget and the city’s overall finances.

Budget Process Begins in March

The school capital plan and operating budget will now move through Portland’s annual budget review process, which involves both city and school officials.

The timeline begins with two joint meetings of the City Council and School Board finance committees:

March 26 – First joint meeting and presentation of the superintendent’s recommended FY2027 school budget.
April 2 – Second joint meeting.

Following those discussions, City Manager Danielle West-Chuhta will present the city’s full FY2027 budget to the City Council on April 13.

The School Board is scheduled to vote on its recommended school budget on April 14, after which the proposal will be forwarded to the City Council and its Finance Committee for review.

Portland’s City Finance Committee, chaired by April Fournier and including councilors Benjamin Grant and Wesley Pelletier, will conduct detailed budget reviews beginning April 14. Mayor Dion serves as a non-voting ex officio member, and Finance Director Brendan O’Connell coordinates the committee’s work.

The City Council will hold public hearings and readings of the full municipal budget in May before finalizing the school budget. Ultimately, Portland voters will have the final say. The school budget referendum is scheduled for June 9, when residents will vote on the spending plan as part of the city’s regular election.

Broader Fiscal Implications

Because the school department represents the largest portion of Portland’s municipal budget, any changes in school spending or state funding levels can significantly affect the city’s overall tax rate.

With rising infrastructure needs, aging school buildings, and uncertainty about state funding levels, the upcoming budget cycle is expected to bring renewed debate about how the city balances school investments with broader municipal costs.

For now, school officials say the immediate priority remains clear: keeping Portland’s school buildings operational while the city debates longer-term decisions about facilities and funding.