2007 MAY 3: Portland city councilors learn that school officials did not cut $500,000 from the $82 million 2006-2007 budget as ordered. The money was used to hire 25 additional people. MAY 4: Superintendent Mary Jo O'Connor says she instituted spending controls in February and expects the budget to reflect the $500,000 reduction by June 30. ON OR ABOUT MAY 10: According to the city's financial administrator, Paul Colpitts, he notifies the school department's business manager that there is an estimated $2.4 million deficit in the 2006-07 budget. JULY 10: Calling it "regrettable but unavoidable," O'Connor announces that the school department overspent its budget for the previous year by $1.7 million. JULY 13: School officials warn that the 2006-07 budget deficit may climb as high as $2.5 million after auditors complete their review this fall. JULY 17: City and school officials agree on a plan to reconcile the previous year's budget deficit and to institute a budget review process. The school department deficit will be covered by the city's reserve fund. Dipping into the reserve fund might endanger the city's bond rating, unless it can show that there is a plan in place to prevent future deficits.
PORTLAND SCHOOL COMMITTEE ELLEN ALCORN, at large, term expires this year CONTACT: alcore@portlandschools.org JOB: Bates College administrator
JOHN COYNE, chairman, District 5, term expires 2008 CONTACT: coynejo@portlandschools.org JOB: Juvenile corrections officer
PETER EGLINTON, District 3, term expires this year CONTACT: eglinp@portlandschools.org JOB: Environmental consultant
LORI GRAMLICH, District 4, term expires 2008 CONTACT: gramll@portlandschools.org JOB: Federal Express account executive
SUSAN HOPKINS, at large, term expires 2008 CONTACT: hopkis@portlandschools.org JOB: Lawyer, University of Southern Maine
BENJAMIN MEIKLEJOHN, at large, term expires this year CONTACT:meiklb@ portlandschools.org JOB: House painter, musician
REBECCA MINNICK, District 1, term expires 2009 CONTACT:minnir@ portlandschools.org JOB: Environmental educator
ROBERT O'BRIEN, District 2, term expires 2009 CONTACT:obrier@ portlandschools.org JOB: Meter reader, Central Maine Power Co.
SARAH THOMPSON, at large, term expires 2009 CONTACT:thompsa@portlandschools.org JOB: Home decor wholesaler
THE SCHOOL BUDGET PROCESS PORTLAND'S SCHOOL budget process is about to change dramatically as a result of the state's new school consolidation law. HERE'S HOW Portland officials typically put together school budgets now. 1) The superintendent develops a budget with input from other administrators and presents it to the School Committee. 2) The School Committee's finance subcommittee reviews the budget and the committee forwards it to the City Council. 3) The City Council's finance committee reviews the school budget and recommends a bottom line for council approval. 4) If the bottom line is less than the School Committee requested, the superintendent, at the direction of the committee, is expected to reduce spending accordingly.
That's all he's been doing lately as the committee and top administrators in Maine's largest school district face growing criticism over an estimated $2.5 million budget deficit.
It's a lot more than he asked for.
"I got into this because I care about education and I wanted to help kids," said Coyne, a juvenile corrections officer. "Now, it feels like it's more about finances than anything else. I don't think anybody got on the board for that reason."
Sympathy seems to be scarce these days for Coyne and his colleagues, especially when taxpayers will have to cover the deficit in the $82 million budget for the 2006-07 school year. Some School Committee members acknowledge they've made mistakes. They say they realize they face a major challenge next year, when the school budget will have to go to public referendum under the state's new school consolidation law.
Coyne called a controversial closed-door meeting last week to discuss the deficit, while many Portlanders are crying out for public accountability and leadership in the school department and beyond.
City councilors say they are fielding scores of telephone calls and e-mails pressing them to intervene on the taxpayers' behalf and fire Superintendent Mary Jo O'Connor and School Finance Director Richard Paulson -- something the council has no power to do.
"Hotheads say they want to see heads roll," said Councilor Edward Suslovic. "Reasonable people say the school department's credibility has been shattered and it's doubtful that credibility can be restored without a change in leadership."
Suslovic declined to say whether he thinks O'Connor or Paulson should lose their jobs.
Coyne and other committee members say it's too early to tell whether anyone will be fired for what one committee member described as "faith-based budgeting" gone wrong.
Lori Gramlich, a committee member for one and a half years, hints that some personnel changes could be made. "I'm not in any position to renew any contracts right now," she said.
Critics question whether committee members have the stomach to accept their responsibility for several budget moves that contributed to the deficit and hold their administrators accountable, too.
O'Connor and committee members say they started dealing with the deficit as soon as they knew about it, which they say was in mid-May.
However, the department set itself up for deficit spending last fall, after the City Council reduced the school budget by $500,000 and energy costs spiked. Then the committee agreed to hire more than a dozen special education teachers and settled employee contracts with 3 percent salary increases instead of 2.5 percent as budgeted. The deficit also includes a revenue shortfall of $850,000 in Medicaid reimbursements and funding for grants administration.
"There's no indication that they really gave a damn what happened," said Tom Zimmerman, vice president of the Portland Taxpayers' Association. "I don't have any pity for them. It's an $85 million business (the current budget) and if they're not overseeing school finances, who is?"
Critics also wonder whether committee members have the expertise or ability to fix the district's financial problems and stave off future deficits. Budget forecasts seem optimistic, especially with the state expecting Portland to make further spending reductions under the new school consolidation law.
In addition to calling for O'Connor's and Paulson's resignations, the taxpayers' group has asked the city to establish a citizens' budget review committee to engage local financial experts in the annual budget process.
Members of the taxpayers' group see a lack of financial expertise and accountability on both the School Committee,...
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