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April 3, 2009

Portland budget crunched

The state's largest city faces a tough budget year that may mean more layoffs.

In the budget expected to be released today by Portland City Manager Joseph Gray, Portland's revenue from excise taxes, parking fees, emergency medical service calls and building permits is expected to be down $1.6 million in the fiscal year beginning July 1, according to the Portland Press Herald. These non-property tax revenues account for 65% of the city's income. State revenue sharing is also expected to decline by more than $200,000.

In anticipation of a second year of steep revenue declines, Gray is asking city unions to accept a one-year pay freeze, and has said any union that supports the proposal will not experience layoffs. Two police unions have already voted down Gray's proposal, and the city's largest union -- the City Employee Benefit Association -- and the firefighters' union are also skeptical of the plan, the paper reported.

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