FY 2026-27 Budget Development

City Council, meeting informally as the City of Portland Budget Committee, heard the remaining portion of the City funds, Operations & Administration Presentation from April. 

5/8/26 Labor - Realignment, Contracting, Span of Control Presentation (YouTube)

5/8/26 Core Services Realignment Proposed Work Session slide presentation (updated)

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5/8/26 Span of Control Presentation (YouTube)

5/8/26 Span of Control slide presentation (updated) 

5/8/26 Span of Control report

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5/8/26 Contracting Presentation (YouTube)

5/8/26 Contracting slide presentation

City Council, meeting informally as the City of Portland Budget Committee, heard the Proposed Budget for the Community & Economic Development Service Area. This is the second of two work sessions, focusing on the Office of the DCA, Spectator Venues, Office of Arts & Culture, Prosper Portland, Portland Children's Levy, and Bureau of Planning & Sustainability (Portland Clean Energy Community Benefits Fund).

5/7/26 Community & Economic Development Service Area Presentation (YouTube)

5/7/26 Community & Economic Development slide presentation

City Council, meeting informally as the City of Portland Budget Committee, heard the Proposed Budget for Housing, Permitting & Planning within the Community & Economic Development Service Area. On May 7, CEDSA will present the Proposed Budget for Office of the DCA, Spectator Venues, Office of Arts & Culture, Prosper Portland, Portland Children's Levy, and Bureau of Planning & Sustainability (Portland Clean Energy Community Benefits Fund).

4/30/26 Public Works Service Area Presentation (YouTube)

5/6/26 CEDSA Permitting & Development slide presentation

City Council, meeting informally as the City of Portland Budget Committee, heard the Proposed Budget for the Public Safety Service Area. This is the first of two work sessions, focusing on Bureau of Emergency Communications, Bureau of Emergency Management, and Portland Fire & Rescue. The second, focusing on Community Safety Programs, DCA's Office, and Portland Police Bureau, is scheduled for May 13.

5/5/26 Community & Public Safety Presentation (YouTube)

5/5/26 Community & Public Safety slide presentation

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BOEC (YouTube)

PBEM (YouTube)

PF&R (YouTube)

City Council, meeting informally as the City of Portland Budget Committee, heard the Proposed Budget for the Public Works Service Area. This is the first of two work sessions, focusing on Portland Bureau of Transportation and Portland Parks & Recreation. The second, focusing on Portland Water Bureau and Portland Bureau of Environmental Services, is scheduled for May 14.

4/30/26 Public Works Service Area Presentation (YouTube)

4/30/26 Public Works slide presentation

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Portland Parks & Recreation (YouTube)

Portland Bureau of Transportation (YouTube)

This is the first in a series of work sessions with City Council, meeting informally as the City of Portland Budget Committee. These sessions will review proposed reductions, additions, and preserved services across each service area, as well as the significant impacts and challenges identified in the Proposed Budget.

View full size image of Graph showing how the Mayor's Proposed balanced the $171 million budget gap, including $8.7 million of additional spending and a $162.9 million current service level gap with $59.7 million in reductions from current service level, $44.4 million in contingency and reserve draws, $30.5 million from a return from Multnomah County transfer for homelessness response to General Fund, $26.9 million in increases in fees and grants, and $10.1 million PCEF interest transfer.

4/29/26 City funds, Operations & Administration Presentation (YouTube)

4/29/26 Budget Overview slide presentation

4/29/26 City Administrator's slide presentation

4/29/26 City Operations slide presentation

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Budget Overview (YouTube)

City Administration (YouTube)

City Operations (YouTube)

The discussion on realignment was postponed to May 8.

Mayor Wilson's Proposed Budget is the first balanced budget put forward in this year's budget process. The City of Portland is facing a record general fund shortfall of more than $160 million. The $8.5 billion proposal makes significant cuts, while maintaining critical resources like police officers, fire stations, parks, community centers, affordable housing, and services to help unsheltered Portlanders move into permanent housing. The Mayor's Proposed now moves to Council for discussion and amendment. State law requires Council to approve a budget in late May and formally adopt it in June.

Press Release: Mayor Wilson focuses on resilience and grit in proposed budget as Portland faces record shortfall

Media Toolkit:

• Portland Mayor Keith Wilson speaks about his 2026-27 Proposed Budget (YouTube)
• View the highlights and key budget adjustments in the Proposed Budget
• View Mayor's Fiscal Year 2026-27 Proposed Budget
• Upcoming budget listening sessions
• View the Budget Calendar

In preparation for another challenging budget year, Mayor Wilson directed city service areas last November to outline the costs of maintaining current services, as well as producing 3% and 10% reduction options for the General Fund and 5% options for rate-charging bureaus. 

This process was designed to identify a range of potential options to inform the important decisions facing the City of Portland in the upcoming budget cycle. 

The options included in this document illustrate impacts and tradeoffs that could be considered – they are not intended to represent final decisions or the only possible approaches. 

Some of the items may move forward in the Mayor's Proposed budget as originally presented. Others may move forward, but with significant modifications. Many will not move forward at all. Their purpose is to offer a sense of the potential impacts under different options. 

Scenario-based planning in budgeting is a common practice. Many municipalities prepare reduction scenarios to help leadership and the community understand trade-offs and make informed decisions, particularly during challenging fiscal years. 

Mayor Wilson will continue to meet with Councilors to gather input and understand their priorities as part of the process of information-gathering and prioritizing. This information will be incorporated into the first iteration of a balanced budget for the City, as mandated by Charter. 

Download the Budget Concepts for FY2026-27

On March 19, the Public Works service area presented current service level budgets, identified resource gaps, and outlined tradeoffs under status quo, 3% reduction, and 10% reduction scenarios requested in the Mayor's November budget guidance. These scenarios are not signals of predetermined cuts but tools to help us have an open, transparent citywide conversation about priorities, options and opportunities.

This is the third in a series of work sessions (rescheduled from March 11) presenting this information to give City leaders context and options to consider for upcoming budget discussions.

3/19/26 Public Works Service Area Presentation (YouTube)

3/19/26 PWSA slide presentation

Key slides from presentation

View full size image of An overview of the Public Works service area Current Service Level Budget by bureau. Full image description hyperlinked below image.

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Upcoming budget sessions:

April 21 9:30 am-1:30 pm Council - as the budget committee - hears the Mayor's Proposed Budget and takes public comment, as required by state budget law. 

Key slides from presentation

View full size image of Currently scheduled dates of upcoming budget sessions

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View full size image of Additional currently scheduled dates of upcoming budget sessions (2 of 3 slides). Full image description hyperlinked below image.

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View full size image of More currently scheduled dates of upcoming budget sessions (3 of 3 slides). Full image description hyperlinked below image.

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Budget Calendar

On March 11, the City Administrator and City Operations service area presented current service level budgets, identified resource gaps, and outlined tradeoffs under status quo, 3% reduction, and 10% reduction scenarios requested in the Mayor's November budget guidance. These scenarios are not signals of predetermined cuts but tools to help us have an open, transparent citywide conversation about priorities, options and opportunities.

The work session also included a presentation on the core services realignment.

This is the second in a series of work sessions presenting this information to give City leaders context and options to consider for upcoming budget discussions. Because of time constraints, the Public Works service area presentation was scheduled for a later date.

3/11/26 City Administrator Presentation (YouTube)

Jump to 3/11/26 and City Operations Service Area Presentation (YouTube)

Jump to 3/11/26 and Core Service Realignment Presentation (YouTube)

3/11/26 City Administrator slide presentation

Key slides from presentation

View full size image of An overview of the City Administrator's Office Current Service Level Budget by bureau. Full image description hyperlinked below image.

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View full size image of An overview of the Portland Solution's Current Service Level Budget by bureau. Full image description hyperlinked below image.

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3/11/26 COSA slide presentation

Key slides from presentation

View full size image of An overview of the City Operations service area's Current Service Level Budget by bureau. Full image description hyperlinked below image.

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3/11/26 Core Service Realignment slide presentation

View full size image of Graphic illustrating the realignment process from Data & Analysis, to Strategic Planning, to Internal Engagement, to Proposal, to Council where we are currently.

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View full size image of Table showing the total impact of the reduction proposals of 98 FTEs cut with an impact of $23.7 million. Click the image description link below for numbers by core service.

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On March 3, the Community & Economic Development and Public Safety service areas presented current service level budgets, resource gaps and tradeoffs under the status quo, 3% reduction and 10% reduction scenarios requested in the Mayor's November budget guidance. These scenarios are not signals of predetermined cuts but tools to help us have an open, transparent citywide conversation about priorities, options and opportunities.

This is the first in a series of work sessions presenting this information to give City leaders context and options to consider for upcoming budget discussions.

3/3/26 Community & Economic Development Service Area Presentation (YouTube)

3/3/26 CEDSA slide presentation

Key slides from presentation

View full size image of An overview of the Community & Economic Development service area's Current Service Level Budget by bureau. Full image description hyperlinked below image.

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Jump to 3/3/26 Public Safety Service Area Presentation (YouTube)

3/3/26 PSSA slide presentation

Key slides from presentation

View full size image of An overview of the Public Safety service area's Current Service Level Budget by bureau. Full image description hyperlinked below image.

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The Chief Financial Officer and City Budget Office presented the Current Service Level (CSL) analysis and discussed next steps, including upcoming work sessions and updates to the budget process. The Council President shared a draft calendar with options for additional discussion in chambers.

2/25/26 Council Work Session: Current Service Level Overview (YouTube)

• Jump to the discussion about communications and engagement

Learn more about FY 2026-27 Current Service Level Budget and Forecasts

Key slides from presentation

View full size image of Table showing comparison of forecast outcomes based on different analyses - CAL versus CSL. Full image description hyperlinked below image.

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View full size image of Table showing the breakdown of the gap surfaced with the CSL analysis. Full image description hyperlinked below image.

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You can find additional information about the budget and budget development in the menu on the right-side of the page (top).

The City Budget Office released the FY 2026–27 Current Service Level Budget Report, detailing the cost of maintaining city services next year and highlighting the gap between projected spending and revenues. The report marks a significant milestone and a foundational shift in the budget development process, creating the baseline to guide ongoing budget discussions.

2/18/26 News Release: City releases Current Service Level Budget Report, establishing baseline for next year's budget 

Read the FY 2026-27 Current Service Level Budget Report (PDF)

Learn more about FY 2026-27 Current Service Level Budget and Forecasts

View full size image of City Budget - Budget Learning Sessions, Fiscal Year 2026-2027. City of Portland map portioned out in different colors by district.

This virtual budget learning session will be recorded and available to watch online after the live session. 

Hear a comprehensive overview regarding the City's budget and budget process. Attendees will learn the basics of the City's Budget, including where money comes from and how it can be spent. We'll walk through what it means to balance a budget, how the budget is developed, and ways community members can get involved.

Learn more and watch online

• Budget Resources
• Forecasts
• Balancing Tool
• Provide input on your budget priorities

View Budget Preparation documents 

The Chief Financial Officer, City Economist, City Budget Office Director, and City Administrator provided an update on the current state of the City's financial condition and budget, and started a discussion about a longer-term financial strategy. 

The Chief Financial Officer recommended the City treat this as a crisis response and focus on problem solving with the goal of creating a clear, actionable strategy that carries us through the challenges and leads the City towards stability and eventually recovery. He presented an outline for a 5-year plan to support a quick and urgent move to action.

1/22/2026 Council Work Session: Financial Condition and Budget Update (YouTube)

1/22/2026 presentation materials

Key slides from presentation

View full size image of Current Financial Reality: Acknowledge the depth and gravity of the current financial crisis (General Fund, Transportation, PP&D, Utilities); End the cycle of moving from annual budget crisis to annual budget crisis; Develop a tangible multi-year plan to: Manage through the current crisis, Achieve and measure financial stabilization, Support progression to long-term recovery

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View full size image of 5-Year Stabilization and Recovery Plan (timeline): From beginning of 2026 through July 1, 2027: Crisis Response (Phase 1) – FY2026-27 Budget Adoption to FY2027-28 Budget Adoption. From early 2027 to July 1, 2028: Stabilization (Phase 2) – FY2028-29 Budget Adoption. From mid 2028 to July 1, 2029: Transition/Assessment (Phase 3) – FY2029-30 Budget Adoption. From mid 2029 to July 1, 2030: Recovery (Phase 4) – FY2030-31 Budget Adoption. From mid 2030 to 2031 and beyond – Regrowth (Phase 5).

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1/14/2026 Resolution: Adopt the Budget Calendar for FY 2026-27

View the Adopted Budget Calendar:
Exhibit A: FY 2026-27 Budget Calendar as amended 1/14/26

The City Budget Office Director shared a revised budget calendar for the upcoming fiscal year for additional feedback and referral to Council. The Finance Committee amended the calendar to add one or more work sessions between Mar. 9 and Mar. 20 to address budget cuts and revenue options Councilors may find acceptable or unacceptable as flags to potentially guide the process as it moves forward. Finance Committee referred FY 2026-27 budget calendar resolution to full council for adoption. 

1/5/2026 Finance Committee: FY 2026-27 Budget Calendar presentation (YouTube)

Draft proposed FY 2026-27 budget calendar (PDF)

1/5/2026 full presentation slides (PDF)

Key slides from presentation

View full size image of FY2026-27 draft budget calendar showing potential dates for specific budget events. Full image description hyperlinked below image.

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The City Economist released the FY 2026-27 General Fund Forecast today, providing an early estimate of discretionary revenues and expenditures anticipated next fiscal year, marking a key milestone in Portland's annual budget development process.

Forecast highlights

• The December forecast currently estimates a $66.9 million General Fund shortfall next fiscal year, including:

  • $50 million one-time General Fund gap for FY 2026-27
  • $16.9 million ongoing General Fund gap for FY 2026-27
     

  This gap does not account for expiring one-time funding, including external grant funding for current year services.

• Both revenue and expenditure assumptions will continue to be refined as the budget process progresses. The full impact will be clearer as budget scenarios are developed and more analysis is released in February.
   
• The estimated General Fund shortfall reflects both revenue adjustments and cost pressures. Lower projected Business License Tax revenues, cost growth, and continued slow growth in property taxes are key drivers.

12/16/2025 news release: City releases December General Fund Forecast, marking start of fiscal year 2026-27 budget process  

December General Fund Forecast for FY 2026-27 (PDF)

Memo summarizing the December General Fund Forecast (PDF)

General Fund Forecast and Current Allocation Level (CAL) tables

You can find additional information about the budget and budget development in the menu on the right-side of the page (top).

December 10, 2025 meeting hosted for City staff by the City Budget Office to officially begin the Fiscal Year 2026-2027 budget development process. The meeting includes an overview of the current year's budget guidance, technical instructions and discussion throughout.

View recording of FY 2026-27 Budget Development Kickoff meeting (YouTube)

FY 26-27 Technical Budget Guidance slides (PDF)

FY 26-27 Technical Budget Guidance overview (PDF)

The Chief Financial Officer and City Budget Office provided information to the Finance Committee about reserves and contingencies, including how those terms are used in the City's budget process and the binding policies that impact their purpose and use. Reserves are generally set by City policy or other requirements and should be budgeted in a separate fund. Reserves are explicitly created to mitigate revenue or expenditure risks and should not be used as a "holding place" for unprogrammed funds. Contingency is a budgetary commitment item within a fund. It is categorized as an expense for budgetary purposes, but under state budget law, the City cannot pay bills directly out of contingency.

12/8/25 Finance Committee Meeting: Discussion of City reserves and contingency (YouTube)

Reserves and Contingency Discussions Slides

City Budget Office released detailed technical instructions to support the Mayor's budget guidance for FY 26-27. The major changes to service area budget development include scenario guidance, current service level scenarios, budget concept forms, budget equity prompts, program offer updates, service area budget summaries, and forecast summaries, each of which is described in detail in the accompanying slide deck.

City Budget Office Technical Budget Guidance Overview (PDF)

Technical Budget Guidance Slides (PDF)

Portland Mayor Keith Wilson released budget guidance to city bureaus and service areas to inform budget development for the fiscal year that will begin July 1, 2026.

The guidance directs each of the City's service areas to prepare three budget scenarios - status quo, a 3 percent reduction, and a 10 percent reduction - for the parts of their portfolios that rely on the general fund. Major programs that rely on other funds also must prepare three scenarios: status quo, alignment with current revenue projections, and, where applicable, a 5 percent reduction in fees.

11/21/2025 news release: Mayor Wilson releases budget guidance for the next fiscal year, planning for continued financial challenges

Mayor Wilson's Fiscal Year 2026-27 Budget Guidance (PDF)

Presentation and discussion of the FY 2025-26 Fall Technical Adjustment Ordinance and FY 2026-27 Budget Process. The City Economist also gave a presentation on the fiscal outlook for FY 2026-27

Charter requires the release of the Mayor's Proposed Budget by May 5. With current resources and process requirements, the earliest possible date it can be available is mid-April.

The development of the Mayor's Proposed Budget involves four key steps and requires 18-20 weeks, starting in mid-December:

• Bureaus and programs must develop the technical budget changes and cut/add packages required by the Mayor's budget guidance (requires approximately 4-6 weeks)
• City Budget Office checks & analyzes budget submissions (requires approximately 4 weeks)
• Mayor works with City Administrator and employees to deliberate and balance the budget (requires approximately 6 weeks)
• City Budget Office makes technical entries and develops budget book materials (requires approximately 4 weeks)

10/22/25 City Council Work Session: Full presentation and discussion about the economic outlook, key budget issues for FY 2025-27 and budget process timeline (YouTube)

10/22/25 City Council Work Session: City Economist presentation on the economic & revenue outlook (YouTube link)

10/22/25 full presentation slides (PDF)

Key slides from presentation

View full size image of Graphic showing the progression of important dates in the 2026-27 Budget Development calendar. Full image description hyperlinked below image.

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View full size image of Graphic timeline of briefings and documents available for 2026-27 budget. Full image description hyperlinked below image.

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View full size image of Graphic showing the process timeline for the budget and the time certain dates. Full image description hyperlinked below image.

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View full size image of Steps and amount of time necessary to produce 2026-27 Mayor's Proposed Budget. Full image description hyperlinked below image.

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View full size image of Bar graph showing expenses that are currently backed by ongoing General Fund discretionary revenues. Full image description hyperlinked below image.

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Several critical deadlines guide the budget development process:

• Mayor's Proposed Budget: The Charter requires completion by May 5. (Due to process requirements, the earliest possible completion date is mid-April.)
• Budget Approval: To align with the TSCC timeline for the required hearing, the budget must be formally approved by May 20.
• Budget Adoption: Final adoption is required no later than June 18.

9/22/2025 Finance Committee: Presentation and discussion about the budget process timeline (YouTube link)

9/22/2025 full presentation slides

Key slides from presentation

View full size image of Graphic showing the process timeline for the budget and the time certain dates. Full image description hyperlinked below image.

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View full size image of Steps and amount of time necessary to produce 2026-27 Mayor's Proposed Budget. Full image description hyperlinked below image.

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