If passed, a validation referendum will be held Tuesday, June 13, at polling stations in both towns.
The proposed budget is $967,350 more than this fiscal year, which ends June 30. The state subsidy to the district is $9.65 million, or $254,835 less than this fiscal year.
Superintendent Craig King said roughly $90,000 in Maine State Retirement obligations has shifted from the Maine Department of Education to the district. Also, programs previously paid by federal grants will now be paid by the district.
School Board Chairman Tina M. Martell said the impact of the budget to taxpayers in Gray is an estimated increase of $78 on a home assessed at $100,000, and in New Gloucester it is an estimated increase of $55 on a $100,000 home.