Oregon Cities Grapple with Deep Budget Cuts as Inflation and Federal Funding Loss Spark Statewide Crisis

Inflation, Salaries, and Loss of Federal Funding are the Root Causes

The shortfalls are a combination of factors like inflation, salary increases, and the loss of pandemic-era federal funding.

The cutbacks come amid growing concerns about meeting community expectations and needs, as well as the provision of essential services.

The four cities are Portland, Eugene, Salem, and Beaverton.

Portland Faces a Whopping $120 Million Shortfall

Hardest-hit is Portland. Residents will help recoup a whopping $120 million shortfall in the general fund with a 25% increase in parking fees, and increases in service charges of 8.1% more for water, and 5.15% for sewer costs.

A large chunk of the ‘back to basics budget’ will be spent on shelters for the homeless, and Mayor Keith Wilson has also announced an additional expenditure of $20 million on the police force, fire agencies, and the Portland Street Response to address rising crime rates and problems associated with homelessness.

A cut of about $9.5 million will be made on consolidating staff positions in communications, community engagement, HR, IT, equity, procurement, and financial management.

The city council will consider the budget at the end of June for final approval.

Eugene Will Stop Animal Welfare Services as Part of its $23 Million Deficit Cutback

Eugene is budgeted for a $23 million deficit over the next two years, cutting services next year for animal welfare, Amazon Pool, and the Sheldon Community Center.

The city says the general fund deficit is because services cost more than income, creating the budget imbalance.

The decision to cut animal welfare services has met with consternation by members of the Greenhill Humane Society, which operates a public animal shelter in the city. They say abolishing the service poses a serious risk to animal welfare and public safety.

The city council has organized public comment budget meetings on 14, 21, and 28 May. The adoption of the budget is scheduled for 23 June.

Salem Property Taxes Add More Than $200 to Homeowner Bills

Salem homeowners will pay $220 more for property taxes on an average home as the city wrangles a budget deficit of nearly $14 million.

Other cutbacks include turning off city fountains and splash pads in public parks, reducing parks maintenance and recreation staff by 30%, and halving the hours that libraries are open to the public.

The budget is due for approval on 23 June.

Beaverton Facing a $10.7 Million Shortfall

Beaverton has a budget shortfall of $10.7 million, which will be offset with reduced expenditure on various departments.

The budget for the police force will reduce the size of its Bike Team and slash a post for an officer on the Mental Health Resource Team.

The city will save $3.4 million by not filling vacancies or jobs that become vacant in the future.

Street repair projects totaling $25 million have been put on hold.

Approval of the budget is set for 3 June.