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Portland Public Schools warns of urgent budget shortfall; cabinet proposes spending controls and personnel options
Summary
CFO Michelle Morrison told the board the district faces a deeply constrained 2025—26 budget with a current-year variance equivalent to about $22.5 million and an immediate remaining gap of roughly $10 million; staff floated mitigation options including spending controls, cancelling a PD day, targeted operational savings and possible furlough days.
Portland SD 1J financial leadership told the board on Feb. 24 that the district faces a fragile fiscal position that requires immediate mitigation. Chief Financial Officer Michelle Morrison said second-quarter reconciliation produced a 2.5% variance amounting to roughly $22.5 million, and after identifying $12.5 million in discretionary savings staff reported a remaining gap of about $10 million for the current fiscal year.
Morrison said multiple factors contributed: weaker-than-expected local option levy receipts, higher transportation and…
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