By Nate Jones

Staff Writer 

Eight residents spoke at a budget public hearing on April 2 when South Portland City Manager Jim Gailey presented his $83 million municipal and school budget for the upcoming fiscal year.

The next city council municipal budget workshop, which will be the beginning of what councilor Claude Morgan called a “pretty flexible” line-item approval process, is scheduled for April 14. 

The proposed budget is nearly $2 million higher than last year, largely due to increases in the cost of municipal operations, which includes a 2.14 increase in estimated regular and overtime wages, retirement benefits and insurance for city employees. If approved, the proposal could increase property taxes by more than 4 percent. Residents and council members alike said South Portland may have to “tighten its belt” in the future as energy costs and other living expenses continue to rise. 

“This is just a bad, bad time for the economy,” Councilor Kay Loring said. 

Resident Debbie Kimball asked councilors to consider “all the angles” before they approve a budget allowing tax increases.

“Is there any other way to do this without raising the property taxes? We’re out there paying for groceries and gas too,” she said.

Mayor Jim Soule said he is working with other mayors in Maine to encourage the state to “take a look at the underutilized sales tax,” to diversify revenue sources for municipalities. 

“The state has provided municipalities with one mechanism, and it’s property taxes,” he said. 

Resident Peter Tousignant said he believes municipalities should view property taxes as a dangerous tool and encouraged the council to cut city operating costs in new ways.

“Nobody knows what the next four years are going to bear,” he said. “This could be a spiral that’s really, really hard to break.”

Resident Walton Allen echoed Tousignant when he told the council to “tighten their belts” by making tough cuts to the budget in lieu of increasing taxes.

“I wish I could go to my employer and say ‘I need a 4.18 percent raise,’” he said. “If you’re going to raise taxes, let’s wait until the economy’s a little better.”

Councilor Maxine Beecher said she too feels frustrated by the proposed increase.

“Our taxes go up too – it’s a two way street,” she said.

Councilor Tom Blake said he is hopeful the new South Portland Economic Developer and Assistant Manager Erik Carson can help South Portland acquire revenue in the upcoming year.

“When money gets tight you have two options: spend less or make more,” Blake said. “We’re trying to do both.”

As part of a new state mandate, the South Portland school budget will be subject to residents’ approval in a public referendum this year, Superintendent Suzanne Godin said.

Resident Jay Allen said voting to approve the school budget could imply voters also approve of the recent school redistricting process, which he referred to as the outcome of several “back room deals.”

“Why is redistricting tied into the school budget?” he asked. “There aren’t many people here to talk about redistricting but I can’t tell you the level of disappointment [there is] in the way that process was handled.”

The proposed $42 million school budget presented to the city council last week includes a 10 percent cut in school operating costs.

 The cuts include the equivalent of 9.2 positions including a bus driver and a custodian and nearly eight other teaching positions. Despite expected decreases in state funding, the school budget is below the tax increase cap implemented by the town council last year.

School Board Chairman Richard Carter said redistricting is included in the school budget to allow for an accurate estimate of costs in the upcoming year.

“We needed to know the amount of staffing that would be necessary,” he said. “There’s a layered approach to the process.

Resident Kandi Lee Hoy said while she can understand the increase in municipality operating costs, she has reservations about voting to approve the school budget considering the 20 percent failure rate at the high school.

“If you have an employee who is failing 20 percent of the time, do you keep them or look for new help?” she asked. 

Godin said the school budget validation referendum is scheduled for May 13.