Summary

Portland's FY 2026-27 budget was adopted tonight on a 9-2-1 vote, closing a roughly $160 million gap between available revenue and current service levels — a gap driven by the expiration of one-time funding, a drop in business license tax revenue linked to federal corporate tax changes, rising health insurance costs, and reduced property and hotel tax receipts. The budget as adopted reflects largely what Mayor Wilson proposed, after a council amendment process that multiple councilors described as falling short. Attempts to restore fire rescue units, 911 call takers, police training funding, and other positions failed repeatedly on 6-6 ties. Among the items that did pass through council amendments: restored funding for the St. Johns fire engine (Kanal 2), the Office of Violence Prevention and Portland Street Response, CHAT program ongoing funding, and a 911 call taker position. Council President Dunphy recused himself from the final vote due to his wife's employment with a botanical garden. Councilors Ryan and Zimmerman voted no. Layoffs of affected city employees are not effective until August 3.

On the ICE facility at Macadam Avenue, City Administrator Lee reported that after a two-day hearing in May, the building owner filed a writ of review in Multnomah County Circuit Court and obtained a stay blocking the hearings officer from issuing a decision on the city's notice of land use violation. The city is contesting the stay and has a hearing set for July 10. The city also plans to publish a draft permanent administrative rule for the detention facility impact fee ordinance on June 26 for public comment, with a finalization deadline of August 26 before the current temporary rule expires.

In other business, the item to rename Cesar Chavez Boulevard was pulled back to Councilor Smith's office for a Planning Commission hearing before returning to Council. Council also received the first reading of an ordinance eliminating the permit and registration requirement for portable sandwich board signs placed by small businesses in the public right of way — a change brought forward by Councilor Novick to remove what he described as an unnecessary and largely unenforced burden on small businesses. That item moves to a second reading at a future meeting.