Portland plans to cut jobs and programs to fix budget problem

(MARCH 6, 2025) Portland has a money problem. There are more expenses than income. That means the city is spending more money than it has. The city needs to cut spending because there is not enough money to pay for all services.  City officials shared a plan last week to help close a $150 million budget gap. 

Michael Jordan works for the city. He recommended cutting 275 jobs. He also recommended cutting programs in many departments. This would help save $35.4 million from the city’s general fund. The city's general fund also pays for police, fire, parks, and homeless services. Another $65 million could come from cuts to transportation, water, and other city services.  

“There aren’t really any good choices,” Jordan said. “It’s about where you will find the money to balance the budget.”  

One plan is to cut $22.1 million from the Transportation Bureau. That office would lay off 100 workers and reduce pothole repairs and road maintenance. The Parks Department may lose $23 million. That would mean no summer programs for kids.  It would also close one of the city’s 11 community centers.

The city’s Permitting & Development Bureau might have to cut $16.7 million to match its lower income from fees.  

The city is losing $40 million in federal COVID-19 relief money. That money paid for services like homeless camp cleanups and graffiti removal. Higher employee health costs, inflation, and fewer property tax payments have also made the budget worse.  

City Council President Elana Pirtle-Guiney said the situation is very difficult. She added, “We need to make sure that every cut we make... sets us up to be a stronger city moving forward.”