Mayor's Message

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Breadcrumb: Mayor's Message

City of Portland Fiscal Year 2026-27 Proposed Budget Office of Mayor Keith Wilson City of Portland Portland is a city defined by our iconic bridges. Fiscal Year 2026-27 marks a moment when Portland's balanced budget must span farther, carry more weight, and bridge a deeper chasm than we have previously demanded of city government. In rising to this challenge, we can emerge more unified, more focused, and more resilient. The strongest cities are forged not by limitless abundance, but by the decisive moments when facing the deepest challenges and threats. The next budget will require far more difficult decisions than our city government has faced in many years. Portland’s fiscal shortfall is mirrored by our neighboring and overlapping jurisdictions, giving us less shared funding, partnership, and fundraising opportunities than in previous years. We have reviewed all accounts and tapped reserve funds where possible. Regionally, we are all navigating unreliable and contentious federal relationships, international disorder, trade disruptions, climate extremes, and other perils beyond our control. In Portland, we must face these challenges together, with the determination and shared values that define our community. Our newly reformed government was designed to meet this moment. Ultimately, we must remain focused and committed to the promise that every Portlander deserves a clean, green, safe, affordable, and economically activated city that reflects our values and priorities, regardless of fiscal headwinds. Although I have relentlessly sought every efficiency measure and fundraising opportunity, these efforts cannot prevent significant and painful cuts. As you participate in this budget process, you may feel moments of discouragement, frustration, and loss. I share those feelings, but I also ask that you join me in turning those feelings into action, into optimism, solidarity, and collaboration. The four cornerstones of my budget are shared vision, shared priorities, shared necessity, and shared sacrifice. We will make difficult decisions in the days ahead, but I hope we can make them together. I’m making a promise to Portland. Together, we will rise to this challenge and meet the moment with innovation, grit, patience, and compassion. We will reaffirm and sustain our successes in public safety, compassion for our most vulnerable, environmental stewardship, and economic viability. We cannot afford to return to an era where we found death in tents, under tarps, behind dumpsters, and beneath bridges. We cannot afford to return to an era where businesses failed, and families left. That’s why my budget keeps every fire station open, funds every park and community center, and keeps every Portland police officer and investigator on the job. 1221 SW Fourth Avenue, Suite 340  Portland, Oregon 97204 Mayor.Wilson@Portlandoregon.gov 15

City of Portland Fiscal Year 2026-27 Proposed Budget Our revenue may lag, but Portland is full steam ahead. Current tax revenues reflect where we were as a city, not where we are, and certainly not where we are going. Sustaining progress and success will require us to implement the hard, important reforms necessary for a return to fiscal growth and sustainability. A growing Portland will be able to invest in multimodal transportation, green technology, beautiful public spaces, and critical services at the heart of our shared prosperity and livability. Like our bridges, every component of my proposed FY 2026-27 budget supports the overall structure. Extraordinary strength does not rely solely on materials, but on design. When constructing a span in a year of constrained resources, we must be cautious not to prioritize the pieces over the whole, or to refuse to compromise on cuts that must ultimately be spread across the structure. We cannot put the brakes on our recovery, and we cannot delay our renaissance. Ignoring, devaluing, or recklessly defunding core services will have very real consequences for the safety, prosperity, and livability of our community. Public Health & Safety Everybody in Portland should be able to live, get around, work, and recreate without facing harm, violence, or fear. Public health and a sense of safety should be a universal right, regardless of age, race, religion, sexuality, national origin, disability, or housing status. • The City of Portland has stepped up to respond to the humanitarian crisis and most urgent challenges on our streets. We will no longer exchange funds with Multnomah County for homeless services and instead focus on providing outreach and core shelter services to our most vulnerable neighbors, as well as public space activation and maintenance. Although Portland Solutions provides important programmatic services, reliance on one-time funding has required us to realign some funding sources and reduce some services. • Despite realigning funds previously traded with Multnomah to our shelter program, City Shelter Services will see a net reduction of 31% (to $39.9 million). As part of broader city General Fund cuts, City outreach will be reduced by 37% (to $2.8 million). Impact reduction programming (total budget $15 million) is proposed to cut its reliance on General Fund by 10%. The Public Environment Management Office will use 68% fewer General Fund dollars by realigning previously appropriated Portland Clean Energy Community Benefits Fund dollars to conduct approved, fund-aligned programming. • The Portland Police Bureau will maintain core mission capabilities and meet budget cuts with a 35% reduction in external materials and services ($5.9 million), 20% in technology and fleet ($3.5 million), 80% in the Public Safety Support Specialist Program ($4.5 million), 10% of operational overtime ($1.7 million), 50% of precinct administrative staffing ($1.6 1221 SW Fourth Avenue, Suite 340  Portland, Oregon 97204 Mayor.Wilson@Portlandoregon.gov 16

City of Portland Fiscal Year 2026-27 Proposed Budget Office of Mayor Keith Wilson City of Portland million), and 35% of the victim services unit ($319,000). • Portland Fire & Rescue will not close any stations but will reduce engine replacement by 20% ($1.2 million) and eliminate one engine at a station that currently has two ($2.5 million). They will also reduce three two-person medical rescue units from 24 hours to peak hours, without fully eliminating the units, and two administrative staffing positions, one of which is vacant ($275,000). Community Health Assess & Treat (CHAT) will be funded by grant funding at the $3.7 million level (12% reduction). • The Bureau of Emergency Communications will reduce training, travel, and continuing education ($382,000), reduce operational overtime by 50% ($422,000), and reduce two 9-1-1 call taker positions and one vacant supervisor position ($520,000). • The Bureau of Emergency Management will reclassify one vacant position ($104,000), reduce the vehicle fleet by half ($51,000), and eliminate two vacant positions ($428,000). • Cuts to other areas will allow us to preserve crucial violence prevention resources. Ceasefire will lose a single coordinator position ($189,000), and Ceasefire and the Office of Violence Prevention will reduce future grants by a total of $1 million. We will also downsize Portland Street Response by two Aftercare Teams ($659,000). Housing On October 7, 2015, the Portland City Council declared a housing and homelessness emergency to help address the city’s growing homeless and affordable housing crisis. The ordinance, which has been renewed repeatedly since, emphasizes the need for emergency shelter, the ongoing shortage of affordable housing units, and the immediate need to provide and maintain housing for those who need it most. While national market forces continue to impact Portland's housing issues, causing prices to rise precipitously across the United States, it is important to recognize that we have the lumber, labor, and land needed for building. Moreover, we now have an opportunity to increase the efficiency and effectiveness of the many housing resources already at our disposal. • In addition to reallocating passthrough funding historically sent to Multnomah County’s Homeless Services Department, the bureau will take slight reductions in external materials and legal services ($675,000), funding agreements with the Bureau of Technology Services ($252,000), and will eliminate two vacant data analyst positions ($298,000). Most other services will remain intact. 1221 SW Fourth Avenue, Suite 340  Portland, Oregon 97204 Mayor.Wilson@Portlandoregon.gov 17

City of Portland Fiscal Year 2026-27 Proposed Budget Activation, Infrastructure, & Opportunity Portland’s economic growth, equitable wealth creation, future high-quality careers, commercial vibrancy, and community togetherness depend on a thriving downtown business core that supports a constellation of successful neighborhood commercial districts. Our activation and economic opportunity goals reflect that proven model. • Prosper Portland will expand the Prosperity Investment Program Grants ($1 million), while making reductions to the City’s workforce development funding ($260,630, 15%) and small business support ($532,000, 20%). Prosper will also reduce staff positions for economic and urban development ($1.08 million). • Portland Permitting & Development will take a $2.9 million reduction in the Tree Permitting program. For other permitting programs, fees will be raised by $3.2 million to cover existing service levels. • Our parks levy supports about half of Portland Parks & Recreation’s operating budget to perform park maintenance, protect nature, and provide programs. Rising costs and reduced City revenues are creating additional pressure beyond what was assumed when the levy was developed. • Transitioning our parks to a sustainable system will require strategic changes to service delivery and new funding sources. The budget includes $2.8 million of new or alternative revenue sources for Parks and service reductions that avoid impacts to levy commitments, legal requirements, and community priorities. No community centers will be closed, but hours and days of operation will be reduced. There will be some reductions to parks and natural areas ($1.2 million), facility maintenance ($1.8 million), and security and emergency response ($0.6 million), as well as operational efficiencies ($2.3 million). • My budget relies on the passage of a Transportation Utility Fee and Street Damage Restoration Fee to keep pace with rising costs and supplement transportation taxes that no longer reflect fiscal realities. It will provide a stable, dedicated source of revenue for maintenance, cleaning, safety upgrades, and infrastructure longevity. Additional Budget Adjustments • Reduce 311 operating hours and staffing by 4 FTE ($888,000) and realign the 311 Performance Office to the City Administrator’s Office. • Reduce Fleet & Facilities costs by lease terminations, contract and services reductions, and reducing two vacant fleet position reductions. 1221 SW Fourth Avenue, Suite 340  Portland, Oregon 97204 Mayor.Wilson@Portlandoregon.gov 18

City of Portland Fiscal Year 2026-27 Proposed Budget Office of Mayor Keith Wilson City of Portland • The City’s enterprise services including Human Resources, Information Technology, Procurement & Grants are being realigned to better support the City’s new form of government with a more centralized service delivery model. The core services realignment has been underway for over a year, and the budget includes a reduction across these functions citywide of $20.9 million (15%) • Planning & Sustainability will decrease district planning capacity by $302,000, Community Technology Capacity and Digital Inclusion by $393,000, and the Climate team’s General Fund by $159,000. Portland’s Promise In Portland, we are doing the hard and important work in our budget, our streets, our parks, and every corner of our city. We’ve restored livability and public safety to our downtown and made strides across the city. We’re ready for the next generation of investment and innovation, businesses, and good careers. I believe in public health and safety. Quality services delivered on task, on time, and on budget. Environmental sustainability. I believe in taking action – even when resources are scarce. I ask you to join me in this budget process, and in writing Portland’s next chapter together. Sincerely, Mayor Keith Wilson 1221 SW Fourth Avenue, Suite 340  Portland, Oregon 97204 Mayor.Wilson@Portlandoregon.gov 19

Parent: Portland FY 2026-27 Proposed Budget · PDF: pp. 15-19 ↗