Portland City Council Adopts Spring Budget Adjustments

Council adopted the fiscal year 2025-26 Spring Technical Adjustment Ordinance (Spring TAO) on April 15, making routine technical, financial and programmatic updates to the current year's budget to reflect updated spending, revenue and operational needs for the remainder of the fiscal year. 

The ordinance also brought approximately $56 million in previously unbudgeted housing resources into the budget and included targeted fiscal adjustments to address the current fiscal year's General Fund shortfall.

What is the Spring TAO?

The Spring TAO is one of two regular budget adjustment processes conducted each fiscal year to keep the City's budget balanced and aligned with current financial conditions.

Each year, the City adopts its budget in June based on revenue and expenditure forecasts for the upcoming fiscal year, which runs from July 1 through June 30. Because the budget is built on projections, the City must periodically update appropriations as new financial information becomes available.

The Fall TAO makes adjustments to beginning fund balances based on year-end data from the previous fiscal year. By spring, the City has approximately nine months of actual spending and revenue data available, allowing for mid‑year adjustments to close shortfalls, refine projections, carry forward funding tied to active projects and grants, and make other technical updates before the fiscal year ends.

What did City Council adopt?

The adopted Spring TAO adjusted appropriations across 53 City funds by a net increase of more than $170 million. The changes primarily reflected updating beginning balances, revised revenue estimates, grant and fee timing adjustments, and updates to project and program spending schedules.

The ordinance also included fund adjustments to address a $17.1 million General Fund shortfall for the current fiscal year.

As part of the ordinance, the Housing Investment Fund beginning balance was updated to reflect the timing of two affordable housing projects. The ordinance also transferred $4.3 million from the Housing Investment Fund to the General Fund to help address current‑year shortfalls.

In addition, City Council approved approximately $56 million in new one‑time appropriations and transfers related to resources managed by the Housing Bureau, allowing those funds to be incorporated into the fiscal year 2025‑26 budget and directed toward current-year housing priorities.

The City Budget Office is now preparing the Mayor's Proposed Budget for fiscal year 2026‑27, informed in part by the adjustments included in the Spring TAO.