Mayor Keith Wilson faced a new range of questions when he presented his proposed budget to the voter-approved 12-member City Council on Wednesday, May 7.

The previous five-member council had supervised individual bureaus assigned to them by the mayor. They were elected citywide, but tended to support budget requests submitted by their bureaus. But the November 2020 City Charter reforms created councilors elected from four geographic districts and placed all bureaus under the management of a professional city administrator.

So when Wilson presented his first proposed budget to the council, most members asked him how his budget affected the wider city, their districts, and the reasons for line-item budget decisions in bureaus they do not personally oversee.

For example, District 4 Councilor Eric Zimmerman said Wilson’s administrative cuts and layoffs aren’t “aggressive enough” since the city has had nearly a year to transition to the new form of government.

District 3 Councilor Steve Novick also raised concerns about the budget relying too much on one-time funding, meaning the city could be in a worse situation next year.

“Like many local governments in the region, the city of Portland will experience layoffs. We will inevitably lose highly experienced individuals who have given much,” Wilson admitted.

Unlike previous years, almost all council members said they would be submitting proposed amendments to Wilson’s proposed $8.5 billion budget, ranging from additional funding for the planned downtown James Beard Food Market to more support for “equity matrix zones.”

Wilson released his first proposed budget since taking office on the city of Portland’s website on Monday, May 5. It reflected the promises and priorities he outlined during his first annual State of the City Speech on Friday, May 2, at Franklin High School, including keeping community centers open, not using the voter-approved Portland Clean Energy Fund to support city bureaus, and continuing work on his promise to create enough overnight shelter beds for all of the homeless in the city by the end of the year.

“My proposed FY 2025-26 budget is a balanced, forward-looking vision and a clear reaffirmation of our city’s values and priorities. Again and again, Portlanders have demonstrated undaunted faith and optimism that our city should lead on public safety, compassion for our most vulnerable, equity for the marginalized, and environmental stewardship. Our final budget must reflect these values,” Wilson said in a message accompanying his proposed budget.

Among other things, Wilson’s proposed budget would:

• Reduce the city workforce by 178 positions, including cutting 51 positions from building-fee-supported Portland Permitting & Development, 32 positions from the Portland Water Bureau, and 47 positions from Portland Parks & Recreation.
• Reduce administrative costs by 20%, including by reduces 56 communication, equity and procurement positions in multiple bureaus now overseen by a professional city administrator.
• Increase funding for shelter beds by $24.9 million.
• Fund 14 new positions at Portland Street Response, the non-armed alternative to the Portland Police Bureau for lower level emergency calls.
• Increase fees for parking meters, ride-share companies, neighborhood leaf removal and recreational activities.
• Maintains $11 million to increase the staff in the office of the mayor and the 12 council members, as approved by the council in January.
• Use $12 million in one-time funds to help fill 90 of the Portland Police Bureau’s vacant positions.
• Although all community centers will remain open, some hours and programs will be trimmed.

“We must also be realistic about the current fiscal environment. I have released my first city budget proposal into a challenging environment defined by national uncertainty and a financial gap widened by expiring one-time funds, slipping regional economic competitiveness, slowing property tax revenues, and the staggering cost of the humanitarian crisis on our streets,” Wilson said in his budget message.

Under Oregon law, the council must adopt a balanced budget before it takes effect on July 1. The fiscal year runs through June 30, 2026.