The Portland Public Schools (PPS) district is facing internal criticism for an “extremely optimistic” 2026-27 budget plan, which analysts believe will not accurately reflect costs, according to the local ABC affiliate.
“The district should consider carefully whether it has been conservative enough in its assumptions to avoid … a second consecutive mid-year budget deficit – which we believe would cause significant long-term damage to the public’s trust in PPS at a time when trust is already fragile,” warned the report from the district’s Community Budget Review Committee (CBRC).
Superintendent Kimberlee Armstrong has warned the district needs to close a $56 million shortfall for the 2026-2027 fiscal year, along with an estimated $65 million deficit for the following year.
Part of this year’s projected costs stem from pay increases, which are still under negotiation with the Portland Association of Teachers (PAT), the news affiliate reported.
“Armstrong’s proposed budget includes a 1% cost-of-living adjustment for employees, according to the report, which is ‘significantly lower than any COLA the district has negotiated with its labor partners in recent memory.’”
