Mayor's Portland budget: 'Back to basics,' 'no easy answers'

PORTLAND, Ore. (KOIN) – Portland Mayor Keith Wilson released his proposed city budget Monday morning outlining his vision in regard to fiscal responsibility while prioritizing public safety.

The mayor’s $8.54 billion budget comes as the city’s general fund faces an oncoming budget shortfall of $93 million, as estimated in February 2025.

“I have explored every avenue to blunt the impact of the coming budget reductions,” Wilson said. “There are no easy answers when facing an unprecedented shortfall in our general fund.”

Wilson’s cuts stem from the end of several one-time funds as well as far-reaching federal uncertainty in the wake of the Trump Administration’s ongoing tariff threats. These cuts include reductions in city staff.

But in his budget, Wilson says Portland must “follow a ‘back to basics’ approach on fiscal responsibility and long-term sustainability.”

Although Wilson is proposing some layoffs in the Parks and Permitting departments (a net loss of less than 40 jobs) he intends to protect and even add staff to fire, police and homeless services. He also plans to reduce 911 call wait times, reduce overtime and add 14 people to expand the operating hours of the Portland Street Response teams.

He also plans to add millions to expand graffiti removal, removing abandoned cars and RVs, fill potholes and clean the streets.

Wilson also promised no community center or pools will close under his proposed budget -- but said the money has to come from somewhere.

Residents will likely pay more in fees for city services.

Wilson said there will be no new taxes -- but there will be fee increases for Parks, Permitting, Parking, with water and sewer bills going up 5% to 8%

And he's still promising to build 1500 new shelter beds by December to make sure the 14,000 people living on the streets will have an indoor place to sleep at night. He's working to get Metro, Multnomah County and the State of Oregon to kick in money to pay for that.

These budget items include support for Alternative Shelter Sites, creating hundreds of beds, and a pilot for a new “homeshare” program to expand affordable housing.

“Our community has spoken,” Wilson said. “They want City leadership to provide basic services, unlock housing, prioritize economic opportunity for all Portlanders and set us forward on a clear and decisive path to end unsheltered homelessness.”

“Again and again, Portlanders have demonstrated undaunted faith and optimism that our city should lead on public safety, compassion for the most vulnerable, equity for the marginalized and environmental stewardship,” Wilson said. “Our final budget must reflect these values.”

In a Monday afternoon press conference, Gov. Tina Kotek acknowledged the budget crisis facing the city as well as Multnomah County after both asked for more money to address the housing affordability issues.

In the past, the city and the county have not been on the same page when it comes to addressing the problem. But now the governor says they are working better together and have submitted a joint proposal to ask the state for more money.

“So the city and the county are asking for $25 in additional funding for homelessness that’s above what's already in my budget,” Kotek said. “I don't know if we can get that money...but what I like its that there's one proposal, and we're all three on the same page.”

On Friday, the City of Portland union declared an impasse in contract talks impacting 800 union members. These disagreements include layoff protections, compensation, and remote work policies. As a result, the union may strike as soon as June 2025.

Budget breakdown

Below is the breakdown for Mayor Keith Wilson’s budget proposal, which will require approval from the City Council before moving forward.

• Public Works - $4.73 billion
• Community & Economic Development - $1.30 billion
• City Operations - $1.02 billion
• City Administrator’s Office - $847.0 million
• Public Safety - $604.0 million
• City Council - $21.1 million
• Office of the City Auditor - $13.9 million
• Office of the Mayor - $3.5 million

It's up to the City Council to approve a city budget. Under the new form of government in Portland, the mayor does not get a vote unless there is a tie.

The City Council will hold work sessions and will likely make changes to this proposed budget before approving it in June.

Stay with KOIN 6 News as we continue to follow this story.