PDX Agenda Tracker: All About the Budget | April 28th-29th, 2025
What We Fund Is What We Become
Dear Readers,
First, a warm welcome to the 35 new subscribers who joined us this month—I’m so glad you’re here!
With the addition of 16 monthly committee meetings to the Council calendar, I’ve been rethinking how I cover City Council. In an effort (okay, I admit it’s a compulsion) to be thorough, my posts have sometimes grown too dense, especially for those reading on their phones (probably most of you). So moving forward, expect shorter, more focused, and frequent updates.
This issue is all about the budget. I’ve pulled together a quick primer and glossary, summaries of key revenue forecasts, and my thoughts on how we can stop managing decline and start building the city we actually want. Whether you’re just trying to get a handle on what the City is doing—or you're ready to demand something better—this one’s for you.
Chloe
P.S. If you find this post helpful, please take a few seconds to like, comment, restack, or share it to help us reach more readers and rabble-rousers!
A just budget rejects austerity and commits to community care, collective thriving, and a city that works for all of us.
Hello! If you’ve been thinking about becoming a paid subscriber, now’s the time! If money is tight, choose the budget option $3/month or $30/year. If you’re doing alright, how about the standard rate $6/month or $60/year. And if your finances are out of sight, perhaps a sustainer-level subscription at $100/year?Understanding Portland’s Budget
A quick guide before you dive into the numbers
City budgets can feel dense and impenetrable, but they impact nearly every aspect of our lives, so it’s essential that we dig in. From which community centers get funded to wait times on 911, Portland’s budget reflects what the City values—and what it’s willing to sacrifice.
At the heart of the budget is the General Fund, the City’s most flexible pool of money. It includes revenue from business taxes, property taxes, and utility fees. City Council decides how it’s spent.
The goal is to use ongoing dollars for permanent services and one-time money for short-term needs like equipment, repairs, or pilot programs. That’s the sustainable way to budget.
Outside the General Fund, Portland manages other revenue streams too, like Tax Increment Financing (TIF) for neighborhood improvements and the Clean Energy Surcharge, a tax on large retailers that funds climate-focused projects through the Portland Clean Energy Fund (PCEF).
Each spring, the City updates its five-year forecast. If expected revenue doesn’t cover projected expenses, the City must cut spending, raise new money, or both to close the gap.
Budget Terms You’ll See A Lot
General Fund
The City’s main checkbook for everyday services. Flexible, but limited.
Discretionary vs. Non-Discretionary Funds
Discretionary = City Council decides how to spend it.
Non-discretionary = Already spoken for by law or contract.
Ongoing vs. One-Time Resources
Ongoing = Reliable, year after year.
One-time = Temporary, can’t be counted on for the long haul.
Shortfall
When expenses outpace revenue, the City has to shrink the gap—usually by cutting services, raising revenue, or both.
Tax Increment Financing (TIF)
A funding mechanism that reinvests increased property tax revenue from rising values in specific neighborhoods.
Clean Energy Surcharge (CES)
A 1% tax on large retailers. It funds community-led climate and clean energy projects through PCEF.
Build Portland Reserves
Funds set aside to repay infrastructure debt. The City sometimes uses these reserves to ease General Fund pressure.
Portland City Council
Finance Committee Meeting | Monday, March 28th | 12PM
1: Fund forecast update (Presentation)
Three memos, one picture of Portland’s financial outlook
Clean Energy Surcharge Forecast Memo: The Clean Energy Surcharge revenue is expected to fall to $64.7 million this year—a steep drop from past highs. But this isn’t a collapse; it’s a timing issue. A few large companies are using past overpayments as tax credits, reducing what the City collects this year without lowering what they owe.
Because a limited number of businesses pay this tax, timing swings can make the numbers volatile. Still, the five-year outlook remains steady, and the Portland Clean Energy Fund (PCEF) funding is unaffected.
Forecasts Executive Summary: The City’s financial picture is mixed. Business tax revenue is steady, but property and lodging taxes remain sluggish, and no major new revenue sources are on the horizon.
The overall General Fund shortfall for FY 2025–26 is projected at $19.7 million in ongoing resources, plus a $1.1 million one-time gap, requiring $20.8 million in cuts to balance the budget. While still significant, this is far better than earlier estimates approaching $100 million.
The Clean Energy Surcharge drop is also acknowledged here, but is viewed as temporary and does not threaten long-term funding for PCEF.
General Fund Forecast Memo: Portland’s General Fund, the most flexible part of the City’s budget, is under pressure. The projected $19.7 million ongoing shortfall is due to slow growth in key revenue sources, especially downtown property taxes and tourism-related income.
To ease some of the burden, the City is tapping Build Portland reserves to cover debt obligations. Note: Labor agreement costs are still pending, meaning the final shortfall could grow.
2. Prosper Portland Discussion (Presentation)
Prosper Portland FY 2025–26 Budget Briefing
Prosper Portland presented its proposed budget to the City Council on April 28, outlining how it plans to fund job growth, small business support, and neighborhood development in the year ahead. Founded in 1958, the agency serves as Portland’s economic and urban renewal authority and is overseen by a five-member volunteer board.
The budget draws from several sources—Tax Increment Financing (TIF) districts, the General Fund, cannabis tax revenue, and federal grants. Much of the money is directed toward TIF districts, which fund infrastructure, housing partnerships, and small business development. Citywide programs for inclusive economic growth, workforce development, and community wealth-building also receive continued support.
Key priorities this year include increasing access to capital for entrepreneurs, supporting innovation, and making sure more Portlanders benefit from economic growth. Prosper continues its long-standing collaboration with the Portland Housing Bureau to support affordable housing through site preparation and strategic property acquisition.
The agency reaffirmed its commitment to racial equity, acknowledging past harm caused by urban renewal and pledging accountability to the communities most impacted.
Beyond the Budget Gap
Every spring, Portland performs a familiar budget ritual: the City Budget Office provides its forecast, which is often a shortfall, departments prepare reduction packages, and the Council considers cuts. This year, the City faces $20.8 million in General Fund reductions. Departments brace for impact. Communities brace for loss.
But what if we stopped managing decline and started designing for dignity?
We need more than another round of austerity measures. We need a budget that reflects the kind of city we’re trying to build—a city where people and planet come before profit, where the basics aren’t luxuries, and where the burden doesn’t always fall on those with the least.
That doesn’t mean ignoring hard numbers. It means confronting them with clarity and courage.
Here’s what that could look like in this moment:
Protect the essentials. Parks, community centers, housing, and non-police emergency response—this is social infrastructure. When we cut them, we don’t “tighten the belt.” We widen the gap.
Reassess our revenue. We need to take a hard look at Portland’s revenue streams and ask: Are they fair? Are they progressive? Are the wealthiest individuals and largest corporations paying their fair share? We can’t fix this year’s shortfall with one policy tweak, but we can start redesigning a system that raises revenue without deepening inequality.
Target where it matters. Budgets should prioritize communities that are the least well served—not as charity, but on principle. Programs that meet urgent needs build stability, opportunity, and shared benefits for everyone.
Give people power. Participatory budgeting and community-led planning are powerful tools for democracy. They’re how we build trust, shift priorities, and make government work for more of us.
Think beyond the fiscal year. The crises we face—housing, climate, inequality—aren’t going away next July. Short-term balancing tricks won’t fix long-term failures. We need budgets that prepare us for what’s coming, not just what’s due.
Other cities are already experimenting with new models: doughnut economics in Amsterdam, just transition planning in Minneapolis, participatory budgeting in Seattle and New York, and public power initiatives across the U.S.
This budget may not fund a revolution, but it could start a transformational realignment that puts people first, plans for the future, and stops balancing the books on the backs of the same communities every time.
Portland deserves better than business-as-usual budgeting. Let’s make this the year we say so—out loud, and on the record.
Want to Get Involved or Learn More?
The Mayor will present his proposed budget on May 5, followed by a public hearing on May 7 and several work sessions throughout May and early June. The first reading and possible vote will be on June 11. If amendments need to be made, the second reading is scheduled for June 18.
The City Budget Office has a public portal with everything you need to stay informed and participate:
Wonk Out!
BOOKS
Doughnut Economics by Kate Raworth
A readable, visual reimagining of economics that centers people and the planet. This is the book that launched the Doughnut framework.Palaces for the People by Eric Klinenberg
A beautifully argued case for social infrastructure—like parks, libraries, and community centers—as the glue of a healthy democracy.The Socialist Manifesto by Bhaskar Sunkara
A sharp, accessible case for democratic socialism that explores its global history, critiques capitalism, and imagines what a just, democratic economy could look like in the 21st century.We Own the Future: Democratic Socialism, American Style edited by Kate Aronoff, Peter Dreier, and Michael Kazin
An anthology of writing that lays out a democratic socialist vision for the U.S., with contributions from organizers, economists, and political thinkers across labor, housing, and climate movements.Fearless Cities (Barcelona en Comú, ed.)
A field guide to municipalism, packed with real-world examples of participatory democracy, community-led governance, and public control. Note: I think I wrote something for this!From Urbanization to Cities: The Politics of Democratic Municipalism by Murray Bookchin
A foundational text arguing for decentralized, directly democratic city governance as the path to ecological balance, social justice, and a revived public life.
DOCUMENTARIES & SHORT FILMS
A Healthy Economy Should Be Designed to Thrive, Not Grow (2018)
Kate Raworth introduces doughnut economics with a bold call to replace endless growth with an economy that meets human needs within ecological limits.Doughnut Economics by Kate Raworth (2017)
A starter video by the Doughnut Economics Action Lab (DEAL). Visual, hopeful, and easy to grasp.Push (2019)
A gripping documentary on the global housing crisis and why cities must take back control from real estate speculation.Public Money (2019)
A concise, people-focused intro to participatory budgeting in NYC—short, clear, and deeply democratic.
PODCASTS
Upstream Podcast Series: The Myth of Freedom Under Capitalism
Narrative-style episodes on the political economy of climate, housing, and alternatives to capitalism—includes episodes on Doughnut Economics and degrowth.The Dig (Jacobin)
High-quality interviews from a socialist perspective on power, labor, and organizing.Cities@Tufts (via Shareable)
Urbanists, organizers, and policymakers discuss public power, democratic control, and just transitions.
NEWSLETTERS & PUBLICATIONS
Next City
Smart, accessible, progressive coverage of topics like participatory budgeting, public banking, community wealth-building, climate equity, and more.DEAL Newsletter (Doughnut Economics Action Lab)
Global examples of cities applying doughnut economics, written clearly and visually. Very little jargon.The Forge
Articles and interviews on movement strategy, political education, and building power from the ground up.