🔒Portland budget proposal calls for raising property taxes, cutting 74 positions

The proposed fiscal-year 2027 budget for the city of Portland would raise property taxes by 4.2%, increasing the average homeowner’s bill by $130. The budget also calls for eliminating 74 city staff positions, many of which are already vacant. City Manager Danielle West presented the $363.9 million budget proposal to City Council on Monday night, noting this has been an especially challenging year to control costs while maintaining core services. “This was an extremely difficult budget to formulate within City Council guidance,” West said, “given the increasing costs of goods, services and labor, heightened funding uncertainty at the state and federal levels, increasing county and METRO expenses and rapidly rising health insurance costs.” West said employee medical coverage alone is predicted to rise by more than 30%, a $6.6 million increase, despite staff’s proposed changes to employee premiums and cutting coverage for weight loss medications.

A 14.5% increase in the Cumberland County tax would cost the city an additional $1.3 million, further complicating budgeting challenges. City Council had set a goal of limiting a tax rate increase to no more than 7%, which West said meant cutting $18 million from earlier budget projections. Proposed belt-tightening measures include reductions in 74 full-time positions, many of which are currently vacant. Others are the result of layoffs, primarily due to staff changes at city shelters. Last month, the city closed its shelter for asylum seekers, citing decreased need, eliminating 35 positions. It reduced staff at its family shelter as well. West is proposing a number of increased fees to help offset rising costs, including for parking, parks, recreation and facilities use, planning and urban development and permitting and inspections. The budget would again dip into the City’s unassigned fund balance. “Last year we had to use over $8 million,” West said. “This year we’re looking at using $4 million, and we want to reduce that going forward.” West noted the city continues to work with the state to address funding needed for general assistance for the homeless population. “We serve a significant number of people who are not from Portland,” she said. The state has reduced its funding from 90% of those costs to 70%. “We’re going to continue to try to get back to that number,” West told the Council. West stressed the budget reflects a goal of maintaining core services, which a majority of respondents to a 2025 community survey praised. West added, “While I was pleased to see the high levels of satisfaction with City services, 75% of respondents did express dissatisfaction with the affordability of living in Portland, and so it was also very important for me to bring forward a fiscally responsible budget recommendation within the Council’s guidance.” The Council’s Finance Committee will begin its review of the budget on April 16, with presentations on the Public Works, Human Resources, and Fire Department budgets, among others. The school board is expected to vote on its proposed budget tonight. The full budget review schedule and relevant documents can be viewed on the Finance Committee page on the city’s website