Portland school board adopts $2025-26 budget as two directors vote no on underfunding

The Portland Public Schools Board of Education voted to adopt the district's fiscal year 2025-26 budget on June 10, approving Resolution 7-121 by a 5-2 vote after an earlier unanimous amendment to the current-year budget.

The adoption finalized the budget the board had discussed across several months and which had cleared review by the Tax Supervising and Conservation Commission. Board members who spoke in favor said the administration had tried to preserve key classroom supports while managing a tight fiscal picture. Several directors who opposed the budget said the state's long-term underfunding of public education forced unacceptable tradeoffs at the district level.

Why it matters: The budget will set spending limits for the district and affect staffing, programs and services across Portland Public Schools (Portland SD 1J) for the coming school year. Board members repeatedly framed the vote as reflecting not a choice about district priorities but the limits imposed by state funding.

The board earlier in the meeting approved a technical midyear amendment to the current fiscal-year budget, amending appropriation lines to reflect actual spending patterns. Chief Financial Officer Michelle Morrison told the board the amendment included movement between instruction and support-service functions and that the district's general fund was approximately $850 million for the year. The amendment passed, as Resolution 7-120, by a 7-0 vote.

During the full budget debate, Director Gary Hollins said he would again vote no on the FY25-26 adoption to protest state underfunding, saying the adopted budget "accepts a funding gap that shifts the burden onto our schools, our staff, and ultimately our kids." Director Brim Edwards and others said they shared the concern but voted to adopt so the district could have an approved spending plan to operate from.

Superintendent Kimberly Armstrong and CFO Michelle Morrison repeatedly described the choices the administration made to hold instructional supports as much as possible while balancing other obligations including special education placements, transportation and previously authorized contract commitments. Morrison told the board some year-end variances reflected operational realities and said auditors expect disclosure of any movement between major functions before the fiscal year is closed.

Board action: The board adopted Resolution 7-121 (impose taxes and adopt the FY25-26 budget) by a vote of 5 in favor and 2 opposed. The earlier amendment, Resolution 7-120 (Amendment No. 1 to FY24-25 budget), passed 7-0. The board also heard multiple detailed questions from directors about particular line items, contingency planning, and how one-time funds and PERS savings were treated in the adopted plan.

What the board said: Directors who supported the budget emphasized the need for an adoptable spending plan and praised staff for maximizing instructional resources. Directors voting no urged stronger statewide advocacy and called for continued pressure on the Oregon Legislature to meet what they called the state's obligations to public education.

Next steps: With board adoption, district staff will move forward to implement the FY25-26 appropriations and return routine financial reports to the board through the fall pre-audit cycle. Directors and the superintendent also discussed potential outreach to the Legislature and community partners to press for higher state investment in future years.

Votes and formal actions taken at the meeting are recorded in the board's minutes and attached resolutions.

Ending note: Board members framed the vote as a pragmatic decision to give the district an operating plan while promising to keep pressing for more state funding and additional transparency about how savings and one-time funds are used.