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Portland Public Schools Superintendent Dr. Kimberlee Armstrong told School Board members on Tuesday that if the district were to discover any extra money in its 2026–27 budget, she would not recommend that money go toward teaching positions.
Her remarks came following a chaotic budget approval hearing on June 23, when board member Stephanie Engelsman presented a last-minute amendment that would have charged the district with finding $13.2 million. That money would have gone toward restoring, among other things, 87 educators PPS laid off amid a $56.3 million budget deficit. That night, School Board members struggled to find a source of funding for that amendment, which ultimately failed. As WW has reported, the rejection upset most School Board members’ biggest ally: the Portland Association of Teachers.
In the hours after the June 23 meeting, former PAT president Angela Bonilla sent an email to the union’s members, encouraging the district in part to keep looking for funds to restore teaching positions. That’s a message that new PAT president Alisha Chavez echoed in her first public comment as union president on Tuesday night. In her remarks, she urged the board to put aside personal differences and collaborate with the union to do what’s best for students.
“My hope for you all as a board is that you don’t accept those layoffs as inevitable,” Chavez said. “I hope this board continues to look for every opportunity, look under every rock, every couch cushion, anything that saves money.”
She added: “Even if it’s just one educator, that matters. I would hope and advocate for more, but anything really makes a difference in our schools.”
At that meeting, board members asked about where they could scrimp and save on contracts or other expenses. But district officials, who had similar plans to continue scrutinizing their expenses, had a different vision for what to do with any excess funds.
Armstrong told School Board members that the district’s forecasted $65.2 million budget deficit for the 2027–28 school year was a “conservative” estimate, one that hinges on the Oregon Legislature. That deficit, which will be the district’s largest on record, comes as PPS has already drained its one-time funding sources. The district, like others around the nation, is struggling with rising costs and declining enrollment.
“If we were able to find 2 or 3 or 4 million somewhere, unfortunately, as hard as it is to say, our recommendation wouldn’t be to restore positions,” Armstrong said. “Our recommendation would be to put that towards the deficit that we are facing for the next fiscal year so that we can lower that number.”
Armstrong’s comments came as part of a more formal question-and-answer session with School Board members on Tuesday about the recently passed budget. And she directly responded to a list of bullet points from PAT about where PPS might find the money. (Armstrong had sent an email to board members in the wake of the PAT email, which WW has reported on.)
The only source of one-time funding readily available to School Board members at this point appears to be the district’s reserves, which are sitting at the 5% board-approved minimum and hold about $41 million. District officials estimate it would be enough to tide the district over for about a month in case of an emergency. The majority of the board on June 23 was adamantly against tapping it.
In response to a PAT suggestion to use any funds in the reserve above 5%, Armstrong and PPS chief financial officer Michelle Morrison emphasized the reserves are at their minimum. Morrison said that the district anticipates that if it receives additional financial resources, that money would likely come in grant form and would be “very targeted and restricted.”
Armstrong further emphasized the long-term consequences of finding temporary funds for teaching positions. “A restoration of positions or any budget item this year adds to next year’s deficit,” she said.
The board on Tuesday also selected a new vice chair. Rashelle Chase-Miller will replace Michelle DePass in the position. Chair Eddie Wang was elected to another term in his position.
