FY 2025-26 PP&R Budget Update
The City of Portland’s budget process has changed with its new form of government. You can find information about the process for developing the City’s FY 2025-26 budget here: City Budget Office | Portland.gov
On February 28, 2025, City Administrator Mike Jordan released his FY 2025-26 preliminary budget recommendations. The City is facing a large budget gap, and City leadership must make difficult choices to streamline services and ensure the most effective use of resources. These choices will impact PP&R programs, services, facilities, partners, and staff.
Without clarity from City Council about a possible Parks Levy renewal, City Administrator Jordan’s recommended budget includes using all available Parks Levy resources and reducing the PP&R budget by about $23 million in FY 2025-26.
This is due to several factors. On the revenue side, PP&R has taken General Fund reductions that total $11.4 million ongoing, including 5% in the current fiscal year and 8% projected for FY 2025-26. Starting this fiscal year, PP&R is receiving about $6 million less in ongoing revenue from the Parks Levy, which is driven primarily by the loss of the commercial real estate value in the central city.
Inflationary cost increases have also been higher than originally projected. For example, labor costs increased 35% per hour worked over the first three years of the Parks Levy. Also, PP&R’s cost from City’s internal service providers have increased as well.
To date, the loss of revenue and increased costs have been offset by the Parks Levy.
Parks Levy Options
If the Parks Levy is renewed at its current rate, $0.80 per $1,000 of assessed value, the proposed cuts for FY 2025-26 could be as much as $23 million, and PP&R will require an additional $27 million in reductions in FY 26-27. In total, this is about 25% of the Parks General Fund and Parks Levy funded current services.
If the Parks Levy is not renewed, PP&R would need to reduce an additional $77 million in FY 26-27 on top of the $23 million in FY 25-26, or 50% of its General Fund and Parks Levy funded current services.
If the Parks Levy is passed at a $1.60 rate, no cuts would be required.
FY 2025-26 Budget Development FAQs
This FAQ list will be updated as the budget process progresses.
- Where can I give feedback or ask questions about the FY 2025-26 Budget Process?
- If you have input about the City Administrator’s preliminary budget recommendations, you can submit it to the City Budget Office, see their budget comment and testimony form.
- If you’d like to information about participating in budget listening sessions, check City Budget Office | Portland.gov.
- If you have PP&R-specific questions about the FY 2025-26 budget recommendations, please email VibrantCommunities@portlandoregon.gov (include #budget in the BODY of your email).