Bucksport faces perfect storm in town budget decisions
Various financial stresses come to a head, forcing officials to consider tax increases of 7 to 12 percent
Bucksport officials started their budget process a month ahead of schedule, a sign of difficult decisions to come. File photo.
March 18, 2026
By Emily Baer
BUCKSPORT—Town officials are facing tough decisions as they begin Bucksport’s annual budget process this month. During a council meeting on March 12, town manager Jacob Gran said that his staff began work towards a first draft a month ahead of schedule, a sign of how complicated and contentious the process may be.
As they began to discuss the draft budget that was presented by Gran, councilors grappled with a perfect storm of rising property valuations, dwindling state aid, and the fallout from years of using one-time funds to artificially lower taxes.
The fiscal reality
The first draft of the proposed operating budget sits at just under $9.7 million, representing a 6.79% increase from last year.
“As it's proposed, [the budget] sustains all services that we currently provide,” Gran said. “It does not add any sort of new services or new full-time or part-time employment positions. It actually reflects the elimination of one full-time employee.”
Gran said that department heads worked hard to keep spending flat but several factors push the bottom line upward.
First, Bucksport’s state valuation has surged by $300 million since 2023, when it was valued around $500 million. While that is a sign of growth, the new valuation triggered a $400,000 drop in state education aid and an $85,000 loss in revenue sharing. Declining enrollment in RSU 25 has further strained the district's funding, as the amount of aid the RSU receives is tied directly to the number of students it enrolls.
The town is left with few options to alleviate the impact of the valuation. Even if the town, for example, lowered the mill rate, “there is a good chance that there are a number of property taxes in this town that would increase [...] because of that valuation,” Gran said.
At the same time, residents have absorbed increasingly high utility bills. This year they face a 28 percent sewer cost increase after a decade of static fees.
And finally, this year’s budget prioritizes transparency, and staff have worked to move non-itemized expenses into the operating budget in a way that reflects real spending.
“One of the things that has made an already very challenging budget, a very challenging budget cycle, is the need to realign the budget to realistic and actual numbers,” Gran said.
Tough choices ahead
Faced with a looming June deadline, the council will explore three distinct fiscal paths to bridge the town's budget gap. These range from a "flat" municipal budget to a "full funding" scenario that would see taxes jump by 12.5 percent.
The council’s discussion on March 12 suggested a middle-ground approach— one that focused on targeting an 8-9 percent increase. To achieve this, the council will consider a potential moratorium on third-party requests for the funding of community and social organizations like Buck Memorial Library, Bucksport Area Childcare Center, Bucksport Historical Society, and others.
“I don’t want to see any layoffs whatsoever.”
The council will also consider a $30,000 reduction in annual contributions toward Down East Family YMCA, which operates an afterschool program, Young Bucks recreational sports program, and the Tim Emery Municipal Pool.
What officials are hoping to avoid are lay-offs at the municipal level.
“I don't want to see any layoffs whatsoever,” said councilor Paul Rabs.
Officials are also hoping to avoid burdening taxpayers with another tax increase after rates already rose by 31 percent last year.
“It’s pretty clear that residents are struggling, and it’s pretty clear that social service agencies are struggling," said councilor Tracey Hair. “So how do we find that balance? I would like to have those conversations sooner rather than later.”
“It’s pretty clear that residents are struggling, and it’s pretty clear that social service agencies are struggling. So how do we find that balance? I would like to have those conversations sooner rather than later.”
Nonprofit organizations and social service agencies that apply for money from the town are usually invited to make presentations to the council in early April, as part of the budget process. The timing of a decision about what the council tends to do about that funding–an $85,000 line item–only adds to the pressure councilors feel.
Long-term stability
As it considers the short term implications of a new budget, the council must also consider moves to fix structural deficits, including a recommendation to finance $870,000 for retaining wall projects over 15 years rather than draining cash reserves, and rebuilding the town’s general fund.
Gran said that if the council determines the need to “go back to the drawing board” and redraft, rather than refine, the budget, he would like to do so as soon as possible to avoid a “scramble” later this spring.
Town officials expect budget discussions to dominate council meetings in the weeks ahead. The council will hold its next budget workshop session on March 19 at 6 p.m. at the Bucksport town office.
