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Portland’s budget is getting balanced—but just barely, and not without a fight.
In a pair of tense meetings this week, the Portland City Council tore into a $7.8 billion spending plan by Mayor Keith Wilson that leans on one-time patches, optimistic forecasts, and painful service cuts to keep the lights on. The proposed budget closes gaps in transportation, parks, housing and internal operations, but councilors made it clear: They may pass Wilson’s budget, but not without a tug of war at the margins.
Portland’s proposed fiscal year 2025–26 budget attempts to address widespread shortfalls through a combination of service cuts, internal restructuring, and temporary fixes, some of which depend on funding that hasn’t been secured. As the council prepares for a final budget vote on May 21, tensions are rising over who will bear the brunt of the cuts and what services Portlanders can expect to remain intact.
One flashpoint: Councilor Candace Avalos’ call to reallocate $1.9 million from the Portland Police Bureau’s staffing budget to parks maintenance, as well as to give City Council greater control over the allocation of police. (Note: An earlier version of this story incorrectly stated that police overtime would be redistributed under Avalos’ proposal. That is not the case. See correction below.)
On Thursday, Avalos formally introduced amendments to that end. WW first reported that proposal on Tuesday.
She sought to preempt the framing of her police budget reduction as “defunding,” calling such a characterization dirty pool.
“I completely reject any notion that a police budget of over $300 million has no room to give,” she said. “I reject the fearmongering that suggests any reduction will result in literal chaos in our streets. Labeling the efforts of many of our colleagues to hold a bureau accountable for their spending as ‘defund the police’ is offensive—not just to me, but to the thousands of Portlanders who have weighed in over the years asking for common-sense community safety solutions.”
Among her amendments: restoring up to $4.5 million to Portland Parks & Recreation, reserving 75% of police and fire overtime for council approval, and directing $1 million to affordable housing, with another $400,000 to rent subsidy for Everett Station Lofts tenants.
One amendment by Avalos would allocate $2 million to maintain parks groundskeeping and $2.5 million to preserve programming that had been set to sunset after summer 2025. She said Portland’s concept of safety must go beyond policing to include housing, infrastructure, and public services.
Though no councilor pushed back directly during Thursday’s meeting, Avalos framed her remarks as a rebuttal to broader political messaging she described as outdated and manipulative.
“We need to stop using coded language to scare people,” Avalos said. “Accountability is not chaos.”
Councilor Angelita Morillo supported Avalos, citing public polling that showed Portlanders prefer preserving community services like housing and parks over increased police spending.
“If we’re going to talk about public safety, we have to be honest about what the public actually wants,” Morillo said. “They want housing. They want parks. They want dignity—not just handcuffs.”
She pointed out that the Police Bureau’s budget had not been cut but increased, even as other bureaus face layoffs and program losses.
Morillo introduced several amendments of her own Thursday. She proposed setting aside $1 million for eviction defense services, $900,000 to restore funding to the city’s Small Donor Elections program, and $50,000 to support trail maintenance through community-based groups. A separate amendment would allow up to $5 million from the city’s golf fund to be redirected toward preserving parks operations.
Meanwhile, Councilors Mitch Green and Jamie Dunphy introduced a joint amendment Thursday that would eliminate the city’s $11 million general fund allocation to Prosper Portland. The economic development agency would instead be directed to fund its operations using its $50 million Strategic Investment Fund, a revolving loan program. The Oregonian first reported on that proposal Friday.
Green said the change was necessary given the city’s constrained resources and would help preserve front-line services.
“We’re asking every bureau to tighten their belts,” Green said. “Prosper is no different.”
Dunphy called it a realignment of economic development priorities. “This is about ensuring that dollars go where Portlanders need them most,” he said.
Other councilors took issue with where Wilson directed some of his most painful cuts: the Bureau of Planning and Sustainability, which is facing a $1.8 million reduction. Planning and permitting agencies together are eliminating more than 60 positions, many currently filled. Some councilors questioned the wisdom of reducing permitting staff while the city pushes to build thousands of new housing units.
The Oregonian reported Wednesday one way in which that frustration boiled over, as Councilor Loretta Smith confronted city administrator Michael Jordan over what she perceived as a disingenuous presentation.
“I can’t even look at this with a straight face,” Smith said, criticizing the city for proposing substantial cuts to permitting staff while simultaneously aiming to expedite housing production. “You can’t come before me and expect me to take your presentation seriously.”
Multiple councilors voiced frustration about how budget amendments are being logged, tracked, and bundled by staff, piling on to previous complaints about the process.
Councilor Sameer Kanal pushed for clarity on whether the Finance Committee would reflect councilwide preferences or act on its own discretion. Morillo raised concerns about amendments being removed from trackers unless they were read aloud, even if submitted by email.
Council President Pirtle-Guiney promised more consistency moving forward but acknowledged the transition to the new system has been messy.
Amendments were due by 5 pm Friday to be reviewed by the City Budget Office. Proposals submitted after the deadline can still be introduced on May 21, but without vetting.
Correction: This story incorrectly stated that Councilor Candace Avalos was seeking to redistribute tens of millions police and fire overtime to other bureaus. In fact, Avalos has called for giving the council great authority in approving overtime spending, while separately seeking to reallocate $1.9 million in the police staffing budget to parks maintenance.
In addition, this story incorrectly attributed several amendments introduced by Councilor Angelita Morillo to Avalos. WW regrets the errors.