Portland Public Schools considers furlough days to make up multimillion dollar budget gap

By Elizabeth Miller (OPB)
Feb. 27, 2026 8:49 p.m. Updated: Feb. 27, 2026 10:52 p.m.

The district has presented unions with another option: layoffs.

Portland Public Schools officials have at least a $10 million budget gap for this school year — that’s after the district cut more than $12 million from the mid-year deficit finance officials recently discovered.

In communications with at least two of the unions representing the district’s employees, PPS administrators have suggested two options to make up the gap: Staff can either take furlough days without pay or there will be layoffs.

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The Portland Public Schools district office in Portland, Ore., Oct. 20, 2023.

The Portland Public Schools district office in Portland, Ore., Oct. 20, 2023.

Kristyna Wentz-Graff / OPB

Oregon’s largest school district works with five unions representing everyone from teachers to custodians and bus drivers.

No decision has been made yet and either of the two main options, furlough days or layoffs, would require negotiating with the district’s unions.

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The Portland Association of Teachers, which represents over 4,000 educators, said they will talk with PPS and the other unions about reaching a written agreement.

“Our membership will be voting on a Memorandum of Agreement to accept two furlough days in efforts to assist in sharing the impact this additional funding shortfall will have on PPS,” PAT leaders said in a statement Friday.

If the district went the furlough route, one possibility would be for the entire staff to take two furlough days before the end of the school year to offset the gap.

The other option is mid-year layoffs. According to a message sent to PAT members, the layoffs could affect the equivalent of at least 170 full-time employees by April.

PAT officials said there are “myriad opportunities to reduce this deficit without hurting instruction or employees.” Their examples include canceling training days, cutting a PPS contract with an AI company, or using interest generated by the $120 million PPS received from the state to move Harriet Tubman Middle School.

“We ask that the District remember the sacrifice we are making now and do their part to responsibly share it, and that they not return to us in coming weeks asking for more sacrifices or moving the goalpost on funding shortfall projections further,” the union said.

According to the Portland Federation of School Professionals, which represents classified staff including educational assistants and classroom support, the district’s plan would mean laying off 100 of their employees before the end of the year.

Staff representing both unions are planning to advocate for education funding in Salem on Monday.

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