City of Portland freezes most hiring, overtime and reclassifications to address current year budget challenges

The City of Portland will implement a freeze on most hiring, overtime, and employee reclassifications starting October 1, responding to a $12 million budget gap in the General Fund. City Administrator Michael Jordan announced these measures to staff, emphasizing the importance of transparency in addressing ongoing fiscal challenges. The shortfall is attributed to lower-than-anticipated Business License Tax revenue, unusual low year-end underspending, and a substantial legal settlement. Currently, the city has about 660 vacant positions, which constitutes 9% of its workforce, with 140 of those being frontline public safety roles. The hiring freeze is projected to save approximately $6 million in the General Fund and potentially up to $20 million from other funds through June 30.

Exceptions will be made for critical frontline roles, with an exception process in place for other urgent needs. The Portland City Council is scheduled to discuss the budget outlook in a work session on October 22, where further adjustments may be proposed. These measures are intended to prevent more severe impacts on city services in the future.