May 2026

Budget Newsletter

It is budget season in the Town of Scarborough, and we want you to be a part of it. The proposed Fiscal Year 2027 municipal budget is outlined in a large document on our website, but we'll show you a few of the highlights here and update you on the progress of the Finance committee thus far. There are several ways to participate in the shaping of our municipal budget. Follow along over the next few weeks as it continues to take shape before the council vote on May 20th and School referendum on June 9th.

We respect the responsibility that residents have placed with the Town Council and staff to be the stewards of your tax dollars and deliver high-quality public services. Read on for an insight into the process, budget details, and how to stay engaged.

The Town Manager Tom Hall and Superintendent Diane Nadeau presented the FY2027 budget to the Town Council on Wednesday, April 1. The budget was put together after months of preparation with individual town departments, Scarborough Schools, and the Board of Education. View the full presentation.

Key Takeaways

1. The Town of Scarborough has a net budget of $97,367,436, including Municipal, Education, County, and Capital.

2. The initial proposed budget is 7.83% higher than last year, which would equate to approximately a 5.97% property tax rate increase. The Finance Committee is finding ways to reduce this (see more below in "Where We Are Now").

3. The Town and School is seeking to largely fund existing services and programs with minimal new investments and positions.

4. The Town’s budget is funded by a combination of sources including property tax revenue (57%), Excise and Municipal revenues (31%), State-provided funds (8%), and Education revenues (4%).

5. The Town’s proposed net budget predominantly funds Education (67%), followed by Municipal (26%), County Tax (3%), TIFs and Other (3%).

The Town remains in a strong overall financial position.

Significant strides have been made over the last few years to improve our financial position. We've secured a stable fund balance and upgraded credit rating.

There are external factors increasing the budget.

The Town will receive less state aid revenue from General Purpose Aid to education and Municipal Revenue Sharing than in years' past (the amount being received has increased, but not at the same pace as expenses). Additionally, the county budget is up nearly 10% due to a loss in federal revenue for the county jail, which means the Town of Scarborough will pay an increased county tax. Lastly, if fuel and other utility increases remain persistent, it will apply additional strain on departments' operational budgets.

The budget limits new initiatives in consideration of recent community investments.

Last year, voters approved a significant school solution (up to $140 million) and the budget included 16 new positions (mainly within public safety). The FY27 budget largely prioritizes keeping staffing levels constant with a few modest proposals to increase existing part-time positions to full-time. Overall, the budget seeks mainly to provide “level services”, maintaining what we have and being selective on limited new investments.

Capital Improvement Projects (CIPs) are investments in areas like maintenance, equipment, infrastructure. They are necessary in order to maintain level services, as well as offer service improvements. The CIP budget mirrors the overall FY27 budget’s focus on prioritizing the delivery of quality essential services. The total proposed capital investment is $26.2 million and includes 3 significant investments:

• East Grand Avenue Complete Streets Project ($4.1M)

• Scottow Hill Road Culvert Replacement ($3.7M)

• Town-wide Radio Infrastructure Upgrade ($9.4M) – Also requires voter approval

While the East Grand Avenue project has been in planning for many years, the Scottow Hill Road Culvert and Radio Projects are more recent critical needs. The projects are currently in motion, as the Town seeks additional funding sources for both projects that would lessen the local cost.

Every year, there is also an investment in the infrastructure, facilities, vehicles and equipment needed to keep Town operations running. Nearly two-thirds of the proposed capital plan is to maintain existing facilities and infrastructure or replace aging vehicles and equipment. 

Video Highlight: Public Works Vehicle & Equipment Replacements

For Scarborough Public Works, the key to minimizing surprise costs when it comes to vehicles and equipment is to follow a routine replacement schedule. Their FY2027 budget request includes $557,000 for replacing four pieces of equipment that keep operations running smoothly: a plow truck, tree truck/bucket truck, pickup truck, and an indoor floor scrubber. Watch the video below with Fleet Manager Ed Alden to learn more about this request, their vehicle and equipment replacement schedule, and how the department is able to extend their equipment beyond the average lifespan.

Video Highlight: East Grand Ave Complete Streets Improvements

Town Engineer Angela Blanchette describes a $4.47 million capital improvement project proposed in the FY2027 budget to do improvements on East Grand Ave. It is a complete streets design— an approach to balance the needs of pedestrians, cyclists, and motorists in a safe way. Learn more about the project's safety features (sidewalks, bike lanes, etc.) and background in this video.

Video Highlight: Town-Wide Radio System Upgrade

Deputy Emergency Communications Manager Jay McAdams shares information about a proposed $9.4 million town-wide radio infrastructure project that is included in the FY2027 budget (requires voter approval). The modern radio system would serve the public safety departments (Scarborough and Old Orchard Beach), all of the municipal departments, and the schools. It would bring all currently separate systems into one streamlined system for better communication across departments.

The current system is aging and nearing end-of-life, and there are several gaps in coverage throughout town. Learn more about the importance of a reliable radio system and how it ensures safety for the community and employees. Note, we are actively pursuing grants and congressional designated spending to reduce the overall impact on taxpayers.

Video Highlight: Scottow Hill Road

Town Engineer Angela Blanchette gives a background on the culvert failure on Scottow Hill Road in May 2025, which has required the road to remain closed until a solution is agreed upon and funding is secured. See the damage and learn more about the complexities around road construction in a protected tidal zone. While a final solution is yet to be decided, the FY2027 budget proposes enough funding for all of the options. Depending on the solution chosen in August 2026, not all budget authority may be necessary (we will only use what we need).

Where We Are Now: Budget Review & Next Steps

After first reading, the Finance Committee completed a comprehensive department-by-department review of the proposed budget. They've since set a 2% mil rate increase as a new target, which would require about $3.65 million in adjustments. Working toward this goal, at their April 30, 2026 meeting, the Finance Committee tentatively identified over $2.81M in budget adjustments which reduces the estimated tax rate to 2.91%. To reach the goal, an additional $840K in further adjustments is required, but these choices will result in staff and service reductions. These additional adjustments will be the subject of discussion over the final weeks of the budget review process, and the Finance Committee is interested in public feedback before making its final recommendation to the Town Council. 

Finance Committee Chair Larry Cain goes into more detail in his May 1st Council Corner article.

Upcoming Budget Meetings & Important Dates

• May 4-18: Conversations With Councilors (Details below)
• Thursday, May 14: Finance Committee final adjustments
• Tuesday, May 19: School Board second reading and vote on school budget
• Wednesday, May 20: Town Council second reading and vote/adoption
• Tuesday, June 9: School budget validation vote

Election Day is June 9, 2026

Election Day is Tuesday, June 9, 2026 and includes the School Budget Validation Referendum Election. Voting will be held at the Scarborough High School, located at 11 Municipal Drive on Election Day from 7:00am to 8:00pm.

Absentee Ballots

Request your absentee ballots early for one to be sent to you. Use this online form or stop into the Clerk's office at Town Hall. Ballots will be mailed to you when they become available. All absentee ballots must be received no later than 8:00pm on Election Day. For further information on Absentee Voting and Voter Registration, contact the Scarborough Town Clerk's Office at 730‑4020.

Stay Engaged: Conversations With Councilors May 4-18

Submit a Question

The budget document is actively being reviewed. Now that you've read about the "level services" approach, highlighted capital investments, and some of the factors that influence the FY27 budget, do you have any questions? We have a form to collect any questions to pass along to staff and councilors. You can also give feedback to the Council at towncouncil@scarboroughmaine.org.

Our focus is centered around maintaining a learning environment where each and every student feels safe, supported, and empowered to reach their full potential. This budget process is guided by a clear vision for student success: one that prioritizes inclusion, strong instruction, and the supports necessary for all learners to succeed at every phase of their school career.

The FY27 budget proposal advances the district’s long-term goals by investing in instructional excellence, strengthening student support systems, and fostering an inclusive culture where all students feel valued. These priorities guide how we allocate resources and shape the decisions made throughout the budget process.

Fiscally Responsible Budget Proposal

For FY27, we begin at a net General Fund expenditure increase of 7.88%, which includes:

• Maintaining essential staffing and services

• Meeting contractual staff compensation commitments

• Addressing projected increases in insurance costs

• Ensuring smooth and effective school operations aligned with student enrollment needs

Review the proposed FY27 budget details and learn more about how these priorities will be implemented (starts on page 190 of 366). Thank you for your continued support and engagement. Together, we will continue working to provide a high-quality education for every student in Scarborough.

Diane Nadeau

Superintendent of Schools

The School Budget Validation Referendum Election will be held on Tuesday, June 9. Vote in-person at the High School or request your absentee ballot. Details here.

Reductions from FY26 Budget

• $526,000 for personnel turnover & reallocation of positions
• $814,000 in multiple line items per Leadership Council review

The Reduced Level Services budget reflects hours of Leadership Council work and multiple conversations reviewing individual level services line items by phase & department. In this work we seek to identify shifts in student needs to more accurately forecast the resources required. For non-personnel accounts we do our best to hold or reduce estimated spending to offset necessary increases in personnel costs.

Added Funding in FY27 Budget

• Meet the required needs of incoming Special Education students

∘ 6.0 Special Services Ed Tech 3 positions ($359,000 wages/benefits)

∘ 0.6 Occupational Therapist position ($68,000 salary/benefits)

∘ 0.5 Speech/Language Therapist position ($52,000 salary/benefits)

• Address enrollment and class size

∘ 0.25 Middle School Music Teacher ($27,000 salary/benefits)

∘ 1.0 Wentworth GATES teacher (reallocated from classroom teacher)

• Protect against loss of grant funds

∘ 1.0 Eight Corners Interventionist (currently Title I) ($102,000 salary/benefits)

• Pre-K Program expansion

∘ Total additional cost of $427,500

∘ Offset by reallocation of teacher positions (reduction of $232,700)

∘ Net new cost of $194,800 provides subsidy increase of $698,548

Further School Reductions to Reduce Overall Tax Impact

Since the budget was initially presented, the Town Finance Committee has asked both the Town and School to work toward a 2% mil rate increase as a target. For the schools, that equates to a $2.19 million potential reduction. We can appreciate that the intent is to have a combined budget that balances community priorities, including educational and municipal programming needs as well as considerations to the taxpayers who make our work possible.

At this point, discussions with the Town Council and the Board are in their beginning stages; no decisions have been finalized. We trust that these bodies will work in partnership through this process, with a shared goal of supporting students and programs while balancing broader community priorities.

The School website contains detailed information about the budget proposal, and areas of potential reduction being considered.

There are many opportunities for you to get involved in the budget review process. Here are some of the ways you can stay connected this spring:

• Town E-Newsletter: We'll continue to keep you informed in our twice monthly newsletters.

• Website: Visit the budget materials made accessible from our website homepage.

• Attend Public Meetings: All accessible virtually; find links on the Town Calendar.

• Attend a Conversation with Councilors: Your Town Councilors and School Board members want to hear from you.

• Share Your Feedback: Email the Town Council at towncouncil@scarboroughmaine.org to express your questions or concerns.

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