Minutes 03/23/2026 - Laserfiche WebLink

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March 23, 2026 School Funding The budget includes $89.9 million for Portsmouth Public Schools, representing a $7.0 million (8.5%) increase over the FY 2026 Proposed Budget. This additional funding will support:  Teacher recruitment and retention through improved compensation  Enhanced educational programs and resources  Facility maintenance and improvements  Technology upgrades for students and classrooms New K-8 School The Capital Improvement Program is dedicated to funding a new K-8 school that provides a modern, high-quality learning environment for our students. By prioritizing this investment, we are directly addressing critical facility needs and creating the infrastructure necessary to drive improved educational outcomes. Portsmouth Advanced Career Education (PACE) Center Through the Capital Improvement Program, this budget proposes continuing support for the (Portsmouth Advanced Career Education), a transformative initiative by Portsmouth Public Schools to expand career and technical education. This project involves the strategic renovation and adaptive reuse of the former DAC Center. Once complete, the center will provide specialized, hands-on instruction in high-demand fields such as welding, plumbing, and healthcare, equipping students with industry-recognized certifications and a direct pathway to the workforce. Discussion of the Financial Aspects of the Budget The investments outlined across each Strategic Pillar represent the City's clearest statement of where it intends to direct energy and resources in the year ahead. But ambition without fiscal grounding is just aspiration. The revenue structure supporting this budget determines what Portsmouth can sustain — not just in FY 2027, but over the planning horizon that follows. The General Fund revenue picture for FY 2027 reflects a local economy that continues to grow, though at a pace that demands careful interpretation. Total proposed revenues of $360,706,684 represent a 6.3% increase over the FY 2026 Adopted Budget, but as detailed below, the composition of that growth matters as much as the topline figure. Understanding where the money comes from — and which gains are recurring versus one- time — is essential context for evaluating the sustainability of the commitments this budget makes. Revenue Summary This increase reflects modest growth in our local economy and strategic adjustments to our revenue structure. However, two individual revenue sources represent the bulk of the increase: Real property taxes and fund balance appropriation. The real property growth, while positive despite no rate increase, exceeds the city’s historical norm and should not be assumed to recur at this rate. The increased draw on fund balance reflects one-time, non-operating uses and does not represent a structural expansion of the city’s recurring revenue base. Excluding these two items, underlying revenue growth is approximately $7.5 million, or roughly 2.3%.