Portland Mayor Keith Wilson directed city bureaus on Tuesday, Oct. 27, to model 5% and 10% cuts to General Fund spending as the city builds its fiscal year 2027-28 budget.
The guidance, released through the mayor's office, asks every General Fund bureau to prepare two reduction scenarios compared with the cost of maintaining current service levels. The new fiscal year begins July 1, 2027.
The scenarios are not predetermined cuts, the mayor's office said. They will help Wilson evaluate options and tradeoffs as he develops a proposed budget. An economic and revenue forecast expected in early December will sharpen the financial picture.
"I recognize that potential reductions in staffing and services have profound consequences for our employees, their families and the Portlanders who depend on City services," Wilson said in a statement. "We must approach this work with empathy, transparency and a shared commitment to protecting our community from disproportionate harm."
The guidance also targets utility bills. The Portland Water Bureau and Bureau of Environmental Services must prepare an alternative scenario that would limit the combined rate increase for water, sewer and stormwater services to no more than 5% for an average residential customer.
Bureaus that collect fees and service charges must report anticipated increases and develop scenarios tied to the Consumer Price Index (CPI) and cost-recovery targets.
Beyond cuts, Wilson asked each bureau to identify its highest-priority budget addition and to pursue grants, philanthropy and government partnerships for additional funding.
City Administrator Raymond C. Lee III is expected to provide strategic priorities to bureaus by the end of the week of Nov. 2, according to the guidance. Those priorities will help bureaus weigh proposals and identify long-term savings.
The City Council adopted the FY 2027-28 budget calendar on Oct. 22. Wilson's proposed budget is expected in April, with the council deliberating and adopting a final balanced budget before July 1, 2027.
The dollar amount of the current General Fund baseline was not included in the guidance released Tuesday. The adopted budget calendar calls for public hearings and community listening sessions in each council district; dates and details are available through the council's resolution.
