In yet another financial blow to Oregon’s largest district, Portland Public Schools has admitted a “mid-year operating gap” in addition to its $50 million budget shortfall for next year.
Staffers discovered the gap “when finalizing budget projections in the current fiscal year” – originally at $22.5 million but later reduced by cutting costs to $10 million, OPB reported.
“As a result of these additional costs, the district is taking immediate actions with a goal of closing the gap by June 30, so the budget problems in the current school year don’t carry over to the coming year.”
Michelle Morrison, the district’s chief financial officer, described the deficit as “a corrective action moment.”
“We always anticipated a need to reduce our workforce sometime this spring,” she wrote in a message to board members and staff. “This current reality may accelerate that timeline slightly. A final determination is still being made.”
The district has been cutting its budget by millions of dollars since the 2022-23 academic year.
