Portland Community College | Portland, Oregon

PCC Bargaining, Budget, and Impact Updates

At a glance

• The current contracts run from 2023-2027. We are engaged in a mid-term reopener, which is limited to salary and benefits. All eligible employees received step increases in 2025 and will receive them again in 2026. Any structure increases to salary determined by this economic reopener will be in addition to these agreed upon step increases.
• PCC is currently in state-mediated bargaining and a required cooling-off period. We are continuing to meet throughout the cooling-off period.
• The earliest a strike could occur is early March 2026.
• Bargaining is occurring during a challenging financial period for higher education, driven by enrollment declines and reduced public funding.

Why is PCC bargaining at this time?

PCC works with two collective bargaining units, both affiliated with the American Federation of Teachers (AFT). Each union contract includes a mid-term reopener to negotiate salary and benefits.

This timing aligns with the College¡¯s biennial (two-year) budget cycle, which allows for a more accurate financial forecast for the second half of a four-year contract. All other contract provisions remain unchanged. Employees are not working under expired contracts.

Current contract status and step increases

Both union contracts cover 2023-2027 and include automatic step increases at the beginning of each fiscal or academic year. All eligible employees received step increases in 2025 and will receive them again in 2026. Any structure increases to salary determined by this economic reopener will be in addition to these agreed upon step increases.

• FCE: 3% effective July 1
• FFAP:
  • Academic professionals: 3.5% effective September
  • Full-time faculty: 3% effective September
  • Part-time faculty: increases based on contact hours, effective September

Management and confidential employees do not receive automatic step increases and have been working under a 1.58% salary reduction since July 1, 2025, the equivalent of four unpaid days per year.

PCC¡¯s current offer

Management Counter Proposal to FCE #3, March 10, 2026

At the onset of bargaining, it was made clear that the college has a contingency balance of $7.5 million, half of which is available for bargaining with both bargaining units. The college is working to offset a biennium budget deficit of roughly $37.7 million. This offer is greater than the stated amount and will result in significant additional cuts for the upcoming biennium.

The college proposes the following:

Total Cost of FCE Package: $4.183 million

• Salary structure increase:
  • 0% for 2025/26
  • 4% for 2026/27
• Monthly Insurance contribution (caps) as proposed by management
  • Single: $835
  • Single + spouse: $1,566
  • Single + family: $1,415
  • Full family: $2,228
  • Effective with the next open enrollment period, October 2026, employees selecting the Health Savings Account (HSA) eligible plan for either Moda or Kaiser will receive the balance of the district contribution to an HSA as established by the employee.
• Upon ratification, a one time lump sum payment of $750 to be paid with regular wages within 60 days of ratification.
• Memorandum of Understanding: The following language will be included in future contracts in Article 18.
  • Opt Out Incentive- Benefits eligible employees, other than part-time faculty, are eligible for an opt out incentive of $200 per month, prorated by FTE, if they opt out of medical (must have other Group medical coverage) and decline vision and dental.
• TRUPP Taskforce: Classified participation in Trupp taskforce will be paid, either through exempt release time or overtime as applicable.

Management counter proposal #3 to FFAP, March 10, 2026

At the onset of bargaining, it was made clear that the college has a contingency balance of $7.5 million, half of which is available for bargaining with both bargaining units. The college is working to offset a biennium budget deficit of roughly $37.7 million. This offer is greater than the stated amount and will result in significant additional cuts for the upcoming biennium.

The college proposes the following:

Total Cost of Package: $8.189 million

• Salary structure increase:
  • 0% for 2025/26
  • 4% for 2026/27
• Monthly Insurance contribution (caps) as proposed by management
  • Single: $835
  • Single + spouse: $1,566
  • Single + family: $1,415
  • Full family: $2,228
  • Effective with the next open enrollment period, October 2026, employees selecting the Health Savings Account (HSA) eligible plan for either Moda or Kaiser will receive the balance of the district contribution to an HSA as established by the employee.
• Upon ratification, a one time lump sum payment of $500 to be paid with regular wages within 60 days of ratification.
• Faculty and Academic Professional employees who hold an advanced degree (as demonstrated with Official Transcripts) will receive a one-time stipend of $2,500. Part time Academic Professionals and Part time faculty to be prorated by FTE but no less than $1,250.
• Offers with previous tentative agreements:
  • Part time faculty insurance contribution shall be prorated based on the part time faculty¡¯s FTE (as calculated at the end of each academic year) when compared to 3.0 FTE for full time faculty for a minimum contribution of 65%.
  • Trupp Workgroup – as proposed by management. Part time faculty to be paid according to Article 18.8.1, all others will participate within the parameters of their professional duties.

Full-time staff monthly contribution for medical, dental, and vision premiums

Coverage Type	2025 monthly contribution	Proposed monthly contribution	Approximate Total Monthly Cost (Assuming Health, Vision, and Dental Coverages)	Out of Pocket Costs Currently	Out of Pocket Costs Using Proposed Monthly Contribution
Self only	$785	$835	$538 -$852	$0-$67	$0-$17
Self + Spouse or Domestic Partner	$1,416	$1,566	$1,091 -$1,901	$0-$485	$0-$335
Self + Child(ren)	$1,315	$1,415	$981 -$1,726	$0-$411	$0-$311
Self + family	$1,953	$2,228	$1,667 -$2,641	$0-$688	$0-$413

Part-time faculty monthly contribution for medical, dental, and vision premiums

Coverage Type	2025 monthly contribution	Proposed monthly contribution	Approximate Total Monthly Cost (Assuming Health, Vision, and Dental Coverages)	Out of Pocket Costs Currently	Out of Pocket Costs Using Proposed Monthly Contribution
Self only	$511	$542.75	$583 -$852	$27-$341	$0-$309
Self + Spouse or Domestic Partner	$800	$1,017.90	$1,091 -$1,901	$291-$1,101	$73-$883
Self + Child(ren)	$800	$919.75	$981 -$1,726	$181-$926	$61-$806
Self + family	$1,000	$1,448	$1,667 -$2,641	$667-$1,641	$219-$1,193

Part-time faculty under SB 551 can purchase medical, vision, and dental coverage with a 90% subsidy on individual (employee-only) premiums. For purposes of family coverage (self + spouse/partner, child(ren), family), PCC also applies its contribution cap toward the combined medical + vision + dental premium.

Who is represented by PCC¡¯s unions?

Federation of Faculty and Academic Professionals (FFAP)

FFAP represents faculty and academic professionals, including:

• Full-time faculty (counselors, librarians, tutors)
• Part-time (adjunct) faculty
• Academic professionals such as accountants, academic advisors, coordinators, resource specialists, grant writers, and employment specialists

These employees are salaried and are not eligible for overtime pay.

Federation of Classified Employees (FCE)

FCE represents classified employees, including:

• Administrative assistants
• Custodial and maintenance staff
• Instructional assistants
• Public safety officers
• IT specialists

These employees are hourly and eligible for overtime pay.

Scope of bargaining

Under Article 33.4 of the FFAP contract and under Articles 26.3.4 and 26.3.5 of the FCE contract, the mid-term reopener is limited to:

• Salary schedules
• The College¡¯s contribution to health care premiums for 2025-2026 and 2026-2027

Other contract articles may only be opened by mutual consent. The bargaining ground rules also allow discussion of Article 5, related to classification and market-rate compensation, in connection with a College-commissioned compensation study conducted by Tr¨¹pp HR. The College has stated that it does not consent to bargaining proposals outside this defined scope.

Bargaining timeline

• Mid-term bargaining began in May 2025
• Ground rules were signed on July 1, 2025
• Management participated in 30 bargaining sessions over 33 weeks
• After the mandatory 150-day direct bargaining period, both unions requested mediation through the Employment Relations Board (ERB)
• Joint mediation sessions were held on January 14 and January 28, 2026
• Both unions declared impasse after the required period
• All parties submitted their last, best offers by February 6, 2026, triggering a 30-day cooling-off period. Bargaining continues with the assistance of a state mediator.

Official documentation related to PCC bargaining is available through the Employment Relations Board.

PCC¡¯s financial context

In order to balance the 2025-2027 biennial budget, there was a total reduction of approximately $11.3 million in personnel and benefit costs. Many of the actions taken to balance the budget impacted management and confidential positions and salaries.

• $1.5 million in salary savings by reducing management and confidential salaries by 1.58% for the 2025-2027 biennium
• $2.1 million in the elimination of 5 management and confidential personnel. These employees no longer work for the college.
• $5.5 million in the elimination of vacant positions
• $1.4 million in additional individual savings from management and confidential positions (the savings resulting from no step/structure for managers and confidential staff)
• $636,000 in position reductions of 4 academic professional positions and 1 classified position. Due to contract language, the impacted academic professional positions are employed at PCC through August 2026. The classified employee was placed in a lateral vacant position.

More information about PCC financial context can be found in our Fiscal Sustainability Action Plan, which was implemented in Fall 2024. The adopted biennium budget in its entirety is published on our website as well. This presentation around bargaining and budgeting with our unions?was provided to the PCC Board of Directors in June 2025.

How does PCC fund negotiated salary increases?

PCC does not pre-set a salary increase budget, as doing so would limit the collective bargaining process. Instead, negotiated increases are funded from the General Fund Contingency, which is also used for unexpected expenses such as emergency repairs or unanticipated legal costs.

For the 2025-2027 biennium:

• Total General Fund Contingency: approximately $7.5 million
• PCC has indicated that about half (approximately $3.75 million) is available for economic bargaining

Budget regulations require PCC to maintain a minimum 9% unappropriated ending fund balance (approximately 4.78 weeks of operating budget), which cannot be used to fund negotiated salaries except in extreme emergencies.

Addressing questions about available funds

Projected and actual costs can differ over a two-year budget cycle. While some expenses may come in lower than expected, others exceed projections. PCC has applied the difference between projected and actual step costs to an additional one-time $500 ratification bonus per employee, which was not included in the College¡¯s original proposal and is not offered to management or confidential staff.

Claims that the College could immediately free up tens of millions of dollars do not account for statutory reserve requirements or the balancing of revenues and expenses over the full biennium. More information refuting this claim can be found in this Understanding PCC’s Budget Realities video.

Historical salary data by employee classification

Salary adjustments by year and employee group

Category	18/19	19/20	20/21	21/22	22/23	23/24	24/25	25/26	26/27
Mgmt structure	2.1%	2.3%	3%	2.1%	4.5%	5%	8%	-1.58%	0%
Mgmt individual (step)	2.8%	3.4%	1.95%	2.5%	3%	4.5%	3.5%	0%	0%
Classified structure	2%	2.5%	7.5%	2.5%	5.5%	6%**	8%	TBD	TBD
Classified Step	3%	3%	3%	3%	3%	3%	3%	3%	3%
AP structure	2%	2.5%	7.5%	2.5%	5.5%	6%**	8%	TBD	TBD
AP Step	3.5%	3.5%	3.5%	3.5%	3.5%	3.5%	3.5%	3.5%	3.5%
FT Faculty structure	2%	6%	2.5%	2.5%	5.5%	6%**	8%	TBD	TBD
FT Faculty Step	3.5%	3.5%	3.25%	3.25%	3%	3%	3%	3%	3%

** indicates a lump sum was paid upon ratification. Management/confidential have not received lump sum payments.

Since 2019, cumulative compensation at PCC has:

• increased 79.85% for Classified Employees
• increased 87.58% for Academic Professionals
• increased 81.62% for Full-Time Faculty
• Increased 55.77% for Confidential
• increased 57.23% for Management

Part-Time faculty compensation is more highly individualized and therefore harder to quantify. However, part-time faculty salary schedules have grown proportionately each year. Review the full year-over-year breakdown of increases by all employee classifications since 2009.

How does PCC compare to other schools in Oregon?

Across Oregon, public education institutions are negotiating compensation increases while simultaneously managing significant budget constraints. Districts such as Portland Public Schools, Beaverton, and Lake Oswego have paired salary settlements with staff reductions, furlough days, or reserve drawdowns to close budget gaps. Community colleges like Mt. Hood have closed academic programs in response to financial pressures. PCC¡¯s bargaining is occurring in this same environment, but within a framework that has balanced the 2025-27 budget primarily through management reductions and vacant positions, while maintaining required reserves and continuing negotiations focused on long-term financial sustainability.

Institution	Recent / Proposed Pay Increases	Fiscal Actions & Tradeoffs
Portland Public Schools (PPS)	14.4% compounded over 3 years (plus step increases for ~50% of educators)	Eliminated ~242 positions for 2025¨C26; drained reserves to balance current budget; forecasting a $50M shortfall for 2026¨C27; announced 290 additional position cuts and $40M in reductions in January 2026
Beaverton School District	Settlement totals ~14.75% over 3 years (5%, 4.75%, 5%)	Prolonged mediation; district and union proposals reportedly $229M apart at one point; district facing ongoing budget pressure
Lake Oswego School District	3.625% (Year 1), 3.25% (Year 2)	Faced $10M deficit; reduced 27 teaching and 64 support staff positions; contract includes one furlough day to avoid further cuts
Mt. Hood Community College (MHCC)	Retroactive increases (6%, 5.5%), followed by 3.5% and 2¨C5% tied to inflation	Closed 7 academic programs in preparation for budget shortfalls; retrenchment planning documented in TSCC reports
State of Oregon (SEIU)	13.05% over two years (2023¨C25), plus 2.5% in 2026 and 4% in 2027	Not a direct comparator: statewide bargaining covers diverse agencies and roles outside an academic environment
Portland Community College (PCC)	In addition to annual steps for 2025 and 2026 built into the current contracts, PCC has increased salaries by 19% since 2022: 5.5% in 2022/23 6% in 2023/24 8% in 2024/25 Additional increases are under negotiation	Balanced the 2025¨C27 budget through $11.3M in reductions, largely impacting management and vacant positions; no furlough days, no reserve drawdown below required thresholds, and continued bargaining within financial constraints