Years ago I was VERY active at Portola, was even paid to cosmetically restore quite a few locomotives, 805A, 2001, 925, 604--I forget them all now! The place was very active, but even then I was constantly arguing for preservation vs "running trains." At the time, it was a pretty fair balance, but even then leadership was long-term. I left when funding fell through for another year of restoration, and eventually became the City of Oroville Museums Curator.
I have no idea what goes on there now; my last visit was to recover my stored Fairmont Motorcar, which originally was lent as a display piece, but had become a "non-member piece of equipment stored on site" and as such, subject to rental fees. Took a little looking to find it, as I recall, but everyone was pleasant to me and we parted amicallby. I doubt many there now even remember me!
So, no "horse in the race" here, but reading about the sale of equipment to pay bills does go against Good Museum Practice, which sets the standard that any part of the collection deaccessioned and sold for profit, said profits are to be used to enhance the collection--which doesn't include paying bills (building display building to preserve the collection, etc. is included).
Times are tough for museums, both private and public--for instance, I was laid off by the City of Oroville in 2013 as part of a major budget cut, and there is still no paid managment of their collections (5 museums, two of which are considered of national significance, and thousands of artifacts in the collections). So I can understand there being problems. Add the remote location, and it's even harder to attract non-railfan visitors. I do know that lots of very good talent has left, some to other museums where they have done well. The steam program looks to be going well, and at one time, the museum--or I should say, the society, had a very good reppport and reputation with the Union Pacific Railroad. That, though, is difficult to maintain as upper managment changes--you wouldn't believe the landmines involved!
I wish the organization well, hope it weathers this and continues to do amazing things. I remember when it all started with one F unit; while I wasn't involved at the time, I was there for the grand debute.