Portland City is currently facing a budget shortfall of approximately $20M heading into the fiscal year 2025. Major budget challenges include staffing shortages, health insurance cost increases, and the termination of some state funding. Portland Mayor, Mark Dion, has reached out to the public and the state for help to address the situation. In the event that nothing changes, the city might have to raise property taxes by 10%, which is an additional $540 annually on a home assessed at $375,000.

Last year, Portland received over $7M from the state to support general assistance funds. This helped provide rent or food to those in need, but it was a one-time gift, and the mayor says the demand and costs for general assistance will only increase.

Dion and the city manager plan to lobby lawmakers in Augusta for additional funding to address this issue. Dion is asking the city manager to draft a budget that brings the tax increase down to about 5% while still maintaining business-critical services of City Hall.

The city council wants to hear from residents about their thoughts on which services the city should prioritize and how much of a tax increase they can handle. The city manager will present a preliminary budget draft at a city council meeting at the end of February. The final approval of the budget will likely occur in May or June.