Portland City Council adopts fall budget adjustments

The Portland City Council adopted a fall technical adjustment ordinance this week to address an $18 million shortfall in the General Fund for fiscal year 2025-2026. This adjustment process is the first since before the pandemic and reflects a significant shift, as the City usually enters the fall with surplus resources. The ordinance reconciles beginning balances across 48 City funds and includes technical corrections, such as transfers to the General Reserve Fund and the Housing Investment Fund. Lower-than-expected Business License Tax revenues contributed to the shortfall, compounded by the end of one-time federal resources and typical bureau underspending. The adjustments ensure compliance with state budget law while maintaining essential services for Portland residents.

The Council's decisions also include updates to future budgets, with additional funding for health fund reserves. This proactive approach aims to stabilize the City’s finances amidst ongoing challenges. The adjustments reflect the Council's commitment to transparency and accountability in managing public funds.