Superintendent warns proposed state funding changes would cut about $1.06 million from Scarborough schools

Superintendent Diane told the Scarborough Board of Education on March 5 that a proposed package of changes to Maine's school funding formula (referred to in the meeting as LD 2224) would, in the modeling presented by the Maine Educational Policy Research Institute (MEPRI), reduce Scarborough's general purpose aid by about $1,059,000 if enacted as drafted.

"Out of 260 districts, we are on track to lose the greatest amount of funding," Diane said, adding that the proposal would redistribute roughly $5 million across the state, with Scarborough shouldering about $1.059 million of that pot. She described four components in MEPRI's recommendations: a regional cost-of-living adjustment, a revised measure of local ability to contribute (including use of economically disadvantaged student rates), reindexing transportation/technology/instructional-support costs, and measures aimed at containing special-education spending.

Diane said the way the bill would recalibrate the local "mill rate" for state subsidy purposes is flawed for Scarborough because it would rely heavily on the share of students flagged as economically disadvantaged, a figure that captures less than one-quarter of Scarborough households. "Seventy-six percent of Scarborough's population has no students in school," she said, and the proposed approach, she argued, misstates the community's true ability to pay.

Board members asked follow-up questions about how the state would apply the mill-rate adjustments and whether local taxpayers without children would be affected; the superintendent and other members clarified that the state's calculation of a subsidy-level mill rate would effectively change the town's state revenue allocation, which ultimately affects all property taxpayers in Scarborough.

Diane urged the board to consider several responses: widen the state's definition of ability to pay (for example, use median household income or total taxable income rather than only the share of economically disadvantaged students), add a hold-harmless provision for districts that would lose funding under the new model, and review the regional cost-of-living index so it accurately reflects Greater Portland and Cumberland County housing and labor costs. She said she had forwarded her notes to Scarborough's legislative delegation and planned to testify at the public hearing scheduled for Monday at 10 a.m. before the Legislature's Education and Cultural Affairs Committee.

Several board members expressed support for Diane's outreach to state representatives and for drafting testimony and letters. The board discussed options for public communications to explain the technical change to residents and to encourage constituents to submit testimony.

The superintendent noted that the proposed changes would not take effect until fiscal year 2028 if enacted and that modeling is based on FY27 numbers; she said the district will continue to monitor the bill and prepare testimony. The board did not take a formal vote on the bill but authorized staff to share materials with the district's legislative contacts and encouraged members to submit testimony.

Scarborough Public Schools and MEPRI were referenced in the discussion; Diane also named state representatives who represent Scarborough, including Rep. Kelly Murphy and Rep. Sophie Warren, as possible legislative contacts.

What happens next: Diane said there is a public hearing on LD 2224 before the Education and Cultural Affairs Committee at 10 a.m. on Monday; she and other board members planned to attend and/or submit testimony online.