1. What's the Core Problem with PPS's Current Budget?

• Over-Complex & Reactive: Enrollment is declining faster than projected, causing mid-year teacher shifts or staff "shortfalls."

• Lack of Clear Goal Mapping: Though PPS has board goals (e.g., third-grade reading proficiency), the final budget doesn't explicitly show how each line item helps meet them (see 2024–25 Adopted Budget, Vol. 1, p. 35–36).

2. What Do We Mean by 'Hold Harmless' vs. Real-Time Adjustments?

• Hold Harmless: Schools keep their teacher allocations even if enrollment is lower than forecast — at least for a certain percentage or a set timeframe.

• Real-Time Adjustments: If enrollment drops or surges beyond a threshold, teacher FTE (Full-Time Equivalent) shifts accordingly.

• Why It Matters: Sudden changes in teacher assignments mid-year disrupt learning. Deciding on a fair "hold harmless" period or policy helps balance resource efficiency with classroom stability.

3. How Do Other Top Districts Handle This?

1. New York City DOE: It uses a Fair Student Funding model that is periodically adjusted, but it caps the size of mid-year cuts to avoid massive disruption.

2. Los Angeles Unified: Reserves a small percentage of teaching staff as a "flex pool," allowing for temporary coverage in high-need schools if enrollment spikes.

3. Chicago Public Schools: Creates an enrollment contingency fund; principals can apply for extra FTE if enrollment exceeds projections by a set margin.

Actionable Step for PPS: Adopt a 0.5% "Surge Reserve" — as suggested for teacher FTE — so if certain schools exceed enrollment projections, they can quickly access an emergency teacher without reshuffling staff from other schools.

4. What About Linking the Budget to Specific Board Goals?

PPS has big board goals (like improving third-grade literacy or eighth-grade math readiness). Still, the budget doesn't show a clear line-by-line connection to these targets. This lack of transparency means families and taxpayers can't see if the money spent is producing results.

5. How Do Top Districts Tie Spending to Outcomes?

1. New York City: Departments submit "Goal Alignment Reports" explaining how each funded program meets citywide metrics.

2. Los Angeles Unified has a Local Control and Accountability Plan (LCAP) that tracks whether each investment improves academic targets, such as graduation rates.

3. Chicago Public Schools: Requires an annual update showing how specific budget lines contributed to set performance benchmarks.

Actionable Step for PPS:

• Student Outcome Budgeting: Each department must produce a one-pager detailing how its funds affect board goals.

• Annual Goals vs. Budget Public Report: Summarize how staffing, materials, and programs align with measurable progress in reading, math, graduation rates, etc.

6. How Exactly Would PPS Implement These Simplifications?

1. Establish Clear "Hold Harmless" Guidelines: Decide on the percentage or timeframe (e.g., 10% of projected enrollment or two months) for which schools won't lose teachers if enrollment dips.

2. Create a Teacher "Surge Reserve": Keep a lump sum of 0.5% of total teaching positions for unexpected enrollment spikes, ensuring schools can quickly get more staff.

3. Adopt Student Outcome Budgeting: Each major program or department must show a direct link to the board's 2022–2027 goals.

4. Publish an Annual "Goals vs. Budget" Report: Provide the public with an easy-to-read document mapping which resources go to which student outcomes.

7. Why Do These Changes Matter for Portland?

• Fewer Mid-Year Surprises: Students keep their same teacher all year, even if enrollment dips a bit.

• Transparency & Trust: Families can see exactly where funds go and how they improve outcomes.

• Better Resource Allocation: PPS invests in what actually moves the needle rather than just filling budget lines that don't relate to student success.