Mayor Wilson releases budget guidance for the next fiscal year, planning for continued financial challenges

Portland Mayor Keith Wilson today released guidance to city bureaus and service areas to inform development of a budget for the fiscal year that will begin July 1 – continuing his commitment to stabilize the city's finances and to support continued improvements to the budget process.

The Fiscal Year 2026-2027 guidance does not include a forecasted budget gap but acknowledges continuing financial challenges as the city awaits an economic forecast in mid-December. Wilson is requesting realistic, transparent budget scenarios that prioritize community health and safety, fiscal sustainability, operational excellence, and meaningful community engagement.

Guidance differentiates the city's general fund, which accounts for approximately 10 percent of the City's resources, from restricted funds that must be used for specific purposes. For example, Portlanders' water and sewer payments must support water and sewer services, and vehicle registration fees must be spent on roads.

General fund

Although the general fund is a small portion of the city's budget, it is the portion with both the greatest flexibility and the starkest financial challenges.

Wilson's guidance directs each of the City's service areas – Public Works, City Operations, Community & Economic Development, Public Safety, and a suite of programs managed by the City Administrator – to prepare three budget scenarios for the parts of their portfolios that rely on the general fund: status quo, a 3 percent reduction, and a 10 percent reduction.

Each scenario should include clear descriptions of service impacts, tradeoffs, and the rationale for prioritized changes.

Other funds

Major programs that rely on other funds must prepare three scenarios tailored to financial forecasts: status quo, alignment with current revenue projections, and, where applicable, a 5 percent reduction in fees.

"As Portland faces another difficult budget season, we have an opportunity to collaborate with community partners and capitalize on our reforms," said Mayor Keith Wilson. "Within the executive branch, my budget priorities will continue to focus on community health and safety, fiscal responsibility and sustainability, operational excellence, community engagement, and supporting the excellence and wellbeing of our City workforce."

Read the Mayor's Full Budget Guidance:

Next steps for fiscal year 2026-2027 budget development

• Technical guidance: The City Budget Office will issue detailed technical instructions to bureaus and service areas by Dec. 1.
• Scenario development: In the coming months, service areas and programs will prepare and prioritize scenarios in alignment with the guidance.
• Leadership briefings: Service areas discuss proposals with the Mayor, City Administrator, and Chief Financial Officer in January.
• Public report: An initial report summarizing scenarios and tradeoffs will be released in February,
• Community engagement: there will be opportunities for community engagement throughout the budget development process.
• Mayor's Proposed Budget: The Mayor will release his proposed budget in April, which will officially move the city into the approved and adopted budget process steps.
• Council deliberations and budget adoption: City Council will deliberate on the fiscal year 2026-2027 budget and adopt a balanced budget by the end of June for the fiscal year that begins July 1, 2026.

Learn about the city's budget