PORTLAND, Maine — Portland is in the midst of reviewing a new budget for the 2021 fiscal year. City Manager Jon Jennings proposed a new budget to the city's finance committee last week following revenue losses amid the pandemic.
The new proposed budget is worth $202 million, and is $4 million less than the previous budget. In the proposed budget, Jennings says the need for a new budget is due to revenue losses amid the coronavirus pandemic.
According to public documents, before the pandemic, Portland expected to take in $120 million in non-property tax revenue. That number has dropped to $108 million, equating to a $12 million budget shortfall.
Portland's finance committee is set to review the new budget for a second time Wednesday night through a virtual meeting. It will be reviewed by the committee again September 2, before going before the full city council for approval later that month.
Some of the biggest changes in the new budge include a slight decrease to the city's property tax rate. The original budget called for a 1.8% property tax increase, however Jennings noted that was not included in the latest budget due to the financial hardships those across the city are already facing.
There are also 65 jobs on the chopping block as part of the proposed budget. 32 of those jobs are vacant positions, while 42 other positions will face reduced hours and layoffs.
Portland's finance director, Brendan O'Connell, says the biggest hit has been a severe lack of tourists visiting the city this year.
"More than 50 percent of our budget comes from non-property tax sources,” O'Connell said. “We have money coming in from cruise ships, parking. The streets of Portland aren't anywhere near as full as they previously would have been."
Department heads in the city of Portland are also asked to provide a 5% overall budget reduction for the 2021 fiscal year.