• Breaking Down The Annual Budget Process

    Every year, PPS faces tough decisions about how to allocate our budget. With approximately 43,375 students, 8,200 staff members, and more than 100 school buildings, every choice we make affects students, staff, and our community. Our goal is simple: provide the best possible education for all students—while navigating the financial resources available to us.

    How the Budget is Created


    The budget process starts in the fall/winter and continues through the spring. Between February and April, staff members from across the district create detailed budget plans for schools and departments. These plans are based on what money we expect to have and how we can best allocate it to meet our students’ needs.

    By late April, the Superintendent will present the proposed budget to the Board of Education and the public. After gathering community feedback and refining the details, the Board will vote to adopt the budget by June.

    Let’s walk through how it happens.

     

    Where Does PPS' Funding Come From?

    Our budget is fueled by three main sources:

    1. Property Taxes

    2. Oregon’s State School Fund

    3. Local Option Levy (previously renewed in May 2024.)

    Together, these sources make up the majority of our funding. However, there are limits to how much we can raise from property taxes due to state laws. Additionally, Portland receives less funding from the State School Fund than other districts because we collect more in property taxes. And with declining enrollment, our state funding decreases as well.

    In addition to these funds, PPS also receives money through grants, donations, and fees. Last year, we received federal COVID-19 relief funding (ESSER funds), which helped us recover from pandemic-related losses and improve learning. However, this funding ended in September 2024, and we won’t be able to rely on it moving forward.

    How is the money divided?

    The revenue we receive is funneled into five main “funds,” each with a different purpose:

    1. Special Revenue Fund: These are restricted funds, such as federal money for special education, student meals, or homelessness support. This fund is particularly impacted by the end of pandemic relief and changes in Title I funding.

    2. General Fund: This is where most of our unrestricted funds go. The General Fund covers everyday costs—like staffing, classroom supplies, and programs. In the current school year, it’s made up of:

      • 30% from Oregon’s State School Fund

      • 38% from property taxes

      • 12% from the 2024 local option levy

    3. Debt Service Fund: This fund pays off the district's debts (think of it like a mortgage for the district).

    4. Capital Projects Fund: This fund covers costs tied to our school bond projects. These are usually approved by voters, so the spending is already decided when the bond is passed.

    Internal Service Fund: This covers the district’s self-insurance.

    How Do We Decide What to Pay For?

    Creating the budget isn’t just about balancing numbers; it’s about prioritizing the needs of our students and schools. The district’s finance team works closely with senior leadership, school leaders, and staff to ensure the budget is aligned with PPS’s strategic goals, community vision, and the Board’s priorities.

    In December and January, the team works to identify priorities, staffing needs, and projected costs. We also consider important factors like student enrollment, which directly impacts funding. With declining enrollment, the district receives less money from the state, and staffing adjustments may be necessary as schools’ needs change.

    Between January to March, teams from Human Resources and Finance distill the skeletal budget structure into “individual school reports.” School principals then work with district leaders to review the initial staffing plans for their schools, making adjustments as needed. This is when school leaders can flag additional needs or request extra resources.

    Challenges with Funding

    This year, the district faces a tough reality: We do not have enough funding to operate as anyone – teachers, staff, school leaders, senior leaders, Board members, families and students – would like. State funding has not kept pace with inflation or students’ needs, and has fallen short of its own quality education model. That means we’re making difficult choices about where to allocate resources.

    For example, PPS chose to continue funding summer school programs despite state cuts. We know this is a critical resource for students who are behind in their learning, but funding this program meant cutting back on other services. These trade-offs are becoming more common as we try to deliver the best possible education with the resources we have.

    The Importance of Oversight

    As a public entity, PPS’s budget is under rigorous scrutiny and oversight. External audits, state and federal oversight, and regular internal reviews ensure we’re being responsible stewards of taxpayer dollars.

    Additionally, our Community Budget Review Committee (CBRC) plays a crucial role in reviewing the district’s budget each year. The CBRC consists of community volunteers – two students and 12 adult community members – who meet regularly between February and April to review the budget and provide feedback to the Board and the public. They ensure that the process is transparent and that we are keeping the needs of our students at the forefront of our decisions.

    Looking Ahead

    While this year’s budget process is challenging, we are committed to maintaining transparency and keeping school leadership, staff, families and the community involved. As the district works to make these tough decisions, your voice and input are crucial. Please stay tuned to this web site and your local school for updates. Together, we can continue to ensure that all students have the resources they need to succeed. 

  • Get Involved

    Stay tuned for opportunities to share your feedback and track the budget process.