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In annual 'state of the city' speech, Portland mayor warns of difficult budget decisions ahead

Portland Mayor Mark Dion gives a statement to the press following city council's decision to move forward with a transportation grant.
Michael Livingston
/
Maine Public
Portland Mayor Mark Dion gives a statement to the press in August 2025.

Portland Mayor Mark Dion warned that difficult budget decisions are coming next year, as the city will have to balance the growing costs of providing public services with federal budget cuts.

In his annual "state of the city" speech Monday night, Dion said the social safety net is eroding for many Portlanders, citing challenges with health care, food assistance and housing vouchers, among others. The city, he said, must be responsive.

"The horizon for those on fixed incomes is bleak, and for many of our elders, it may turn out to be impossible for them to hold on," Dion said. "Washington decisions always play out on a local stage."

At the same time, Dion painted a complex picture of Portland's efforts to build more housing.

The city approved 1,300 new housing units this year, a 15-year high, Dion said.

"That number represents the potential for new housing units that could be built," he said. "But potential is much different from actual build-outs."

Dion said over the last 15 years, just 65% of housing units that were permitted by the city were actually built. And he said it's taking too long for developers to complete construction.

Dion urged the city council to consider changing Portland's inclusionary zoning, which he said may be holding developers back from building more housing. The city of Portland is currently studying the impacts of inclusionary zoning, with a report expected next year.

He also called for changes to the city's needle exchange program, which currently allows as many as 100 clean needles to be distributed for every used one returned.

He believes residents and business owners are getting tired of seeing needle waste.

"Public compassion is running low, when they consistently walk around individuals sprawled on the sidewalk, witness others shooting up in a bus stop or ask someone nodding off from a recent injection to clear a doorway," Dion said.

His remarks come as several other towns around Maine have considered changes to their own needle exchange programs. Sanford recently paused its syringe disposal program one year, citing similar concerns.

Early next year, Dion said Portland will also launch a new team of so-called "urban rangers," who will help police officers enforce public safety laws and help people in crisis. They will be based out of a new community police center off Congress Street.

In addition, Dion urged city officials to bring school resource officers back to Portland public schools.