Citing "uncertainty surrounding the economic outlook," Portland Mayor Sam Adams told city bureau directors today to hold back on new spending requests for next year's budget, and to prepare for "significant program cuts"—between 4 and 8 percent—in the next fiscal year.
“A full economic recovery has not yet happened. Unemployment is still very high, and few economists are predicting the type of growth that would significantly increase revenue in the near term. We’re being prudent as we approach next year’s budget,” Adams said in a statement released by his office.
Uncertainty doesn't say the half of it. Fed Chairman Ben Bernanke told Congress yesterday that the U.S. economy was "close to faltering," and certain key markets have been acting all crazy. Oh, and apparently something's been happening in Europe.
Download Adams full memo here (pdf).