Portland City Council PM Session 07/15/26
Portland council's fighting over two rival budget plans to undo layoffs before they start in August: one restores 48 jobs using $7M in Clean Energy Fund interest, the other restores 30 (mostly cops) using $9.96M from reserves, including $3M for police training. Big fight over whether the cop-heavy plan quietly pressures the police accountability board to underspend — council stripped that language 8-4, but no final vote yet. Both come back for a final decision July 22.
Agenda
- 2026-222: Amend the FY 2026-27 Budget to appropriate $7,150,007 in Portland Clean Energy Fund interest income and other fund resources to restore frontline positions and services reduced in the approved budget and to provide transition support for affected employees
- 2026-223: Adopt a Supplemental Budget for FY 2026-27 to reduce potential risks to City services
- 2026-241: *Authorize Letter of Agreement with the Laborers’ International Union of North America, Local 483 for premium pay to Assistants and Aides as defined in the Preschool for All Program
- 2026-216: Extend lease with Urban Office and Parking Facilities for the CityKids Childcare and Development Center space by five years (amend CLM Contract 10014)
- 2026-203: Direct the City Administrator to reestablish a Permitting Improvement Team to lead the second phase of the Code Alignment Project
- 2026-192: Amend Vehicles and Traffic Code to clarify applicability of ride fees and establish a Drivers’ Resource Center for Transportation Network Company drivers (amend Code Sections 16.40.030 and 16.40.240)
Summary
Two competing supplemental budget ordinances dominated the evening, with councilors debating how to restore positions and services cut from the FY2026-27 budget before layoffs begin in early August. Ordinance 2026-222, the 'Save Our Services' proposal sponsored by Councilors Green, Avalos, Morillo, Kanal, and Koyama Lane, would restore 48 positions across parks, transportation, fire, 311, and other bureaus using roughly $7 million in already-accrued Portland Clean Energy Fund interest with no draw on General Fund reserves. Ordinance 2026-223, the 'Risk Reduction Rescue Plan' from Vice President Clark and others, would draw $9.96 million from General Fund contingency to restore 30 positions focused on public safety — including $3 million for police training — while also replenishing the Business License Tax reserve. Because state law allows only one supplemental budget at a time, council must ultimately choose between them; final votes are scheduled for July 22.
The sharpest dispute of the night concerned whether Ordinance 2026-223 would effectively pressure the Office of Community Based Police Accountability to underspend its $16 million budget. The original 2026-223 text directed staff to 'initially consider' OCPA underspending and PCEF interest to refill the contingency in the spring. Opponents argued this constituted interference with the charter-protected independent board, which 82% of Portland voters created in 2020 and which is still in its startup phase without a permanent director or full staff. An amendment from Council President Dunphy removing the specific OCPA and PCEF references — and substituting a broader exhibit of prior-year underspending across eight bureaus — passed 8 to 4, with Councilors Clark, Zimmerman, Smith, and Ryan dissenting. Supporters of 2026-222 argued their ordinance remained superior because it uses stable, already-available PCEF interest without any dependency on future underspending assumptions. A proposed amendment from Councilors Koyama Lane and Kanal to restore a senior center position, an international relations coordinator, and a ceasefire program coordinator was introduced and divided into three parts for separate votes but was not yet voted on when the meeting ran late.
In other business, City Attorney Robert Taylor reported a legal win in the city's ongoing effort to hold the owner of the McAdam building — which houses an ICE facility — accountable for permit violations: a circuit court allowed the hearings officer to issue a ruling, which came out in the city's favor, though litigation continues. The meeting opened with a pre-gavel Pride Month recognition during which several openly LGBTQ councilors, including Councilors Zimmerman, Morillo, Pirtle-Guiney, and Ryan, spoke, and Mayor Wilson's proclamation declaring Portland Pride Summer was read into the record. Council will reconvene next week for second readings and final votes on both budget ordinances.
Key Points
- Council held a pre-gavel Pride Month recognition with remarks from openly LGBTQ councilors and a proclamation from Mayor Keith Wilson declaring June and July 2026 'Portland Pride Summer'
- Two competing supplemental budget ordinances (2026-222 and 2026-223) were introduced and debated to restore positions and services cut in the FY2026-27 budget, with only one able to become law; key differences include number of positions restored (48 vs. 30), funding sources, and whether police training funds are included
- A significant point of contention centered on whether Ordinance 2026-223 (the 'Risk Reduction Rescue Plan') would effectively pressure the Office of Community Based Police Accountability (OCPA) to underspend its budget to backfill the General Fund contingency — an amendment (Dunphy One) removing specific reference to OCPA as a backfill source passed 8-4
- City Attorney Robert Taylor reported a legal victory: a circuit court allowed the city's hearings officer to issue a decision on the McAdam ICE facility permit violation, and that decision was issued in the city's favor, sustaining the notice of violation against the building owner
- Public testimony from labor unions, firefighters, police accountability advocates, and community members was heard on both supplemental budget ordinances; final votes on the underlying ordinances were deferred to a second reading the following week
Votes (1)
Amendment Dunphy One (to Ordinance 2026-223)
Removes specific language directing budget staff to initially look at OCPA underspending and PCEF interest to backfill General Fund contingency, replacing it with a broader direction to consider all underspending and interest accruals across bureaus, with an exhibit listing prior-year underspend by bureau
Action Items
- Second reading and final votes on Ordinance 2026-222 and 2026-223 scheduled for July 22, 2026; only one can become law
- Remaining amendments to Ordinance 2026-223 (Koyama Lane-Kanal One parts 1A/1B/1C, Kanal Two, Kanal Three) to be debated and voted upon, likely at the July 22 session or before final passage
- City Attorney's office to continue litigating the McAdam ICE facility permit case through circuit court review
- PBOT to present autonomous vehicle rulemaking to the Public Works Committee on July 28, 2026
- City Budget Office directed (per Dunphy One if 2026-223 passes) to bring a supplemental budget by April 1, 2027 identifying underspending and interest accruals across bureaus to replenish the $9.96 million drawn from General Fund contingency
- City Administrator directed (per 2026-222 if passed) to deliver a position-by-position service impact analysis for restored positions, in consultation with labor unions and frontline staff
- Budget Director to provide IPR budget figures for FY2025-26 as requested by Vice President Clark during the meeting
Issues Discussed (13)
Council held first readings of two competing supplemental budget ordinances that would partially restore parks positions cut from the FY2026-27 budget. Ordinance 2026-222 would restore 48 positions across parks and other bureaus using approximately $7 million in Portland Clean Energy Fund interest, while Ordinance 2026-223 would restore fewer positions with a focus on public safety; final votes between the two mutually exclusive proposals are scheduled for July 22.
Referenced tangentially during the meeting, as City Attorney Robert Taylor reported a legal update on the McAdam building — which houses an ICE facility — noting a circuit court ruling in the city's favor on permit violations, though litigation continues; no action was taken specifically on a detention facility impact fee.
Referenced during committee review but not substantively discussed; the meeting focused entirely on competing supplemental budget ordinances and related amendments, with no mention of autonomous vehicle rulemaking in the summary.
A disputed provision in Ordinance 2026-223 would have directed staff to consider underspending from the Office of Community Based Police Accountability (OCPA) to replenish General Fund contingency, which opponents argued constituted interference with the charter-protected, voter-approved independent oversight body still in its startup phase. An amendment removing the specific OCPA reference passed 8 to 4, with four councilors dissenting.
Council debated two competing supplemental budget ordinances that both include fire rescue staffing restoration: Ordinance 2026-222 would restore positions across multiple bureaus including fire using PCEF interest funds, while Ordinance 2026-223 would restore 30 positions focused on public safety using $9.96 million from General Fund contingency. Final votes on both ordinances are scheduled for July 22.
Council debated two competing supplemental budget ordinances that both included provisions to restore fire positions cut from the FY2026-27 budget. Ordinance 2026-222 would restore fire among 48 positions using PCEF interest funds, while Ordinance 2026-223 would restore 30 positions with a public safety focus using $9.96 million from General Fund contingency; a final vote between the two is scheduled for July 22.
Council debated two competing supplemental budget ordinances, with Ordinance 2026-222 proposing to use approximately $7 million in already-accrued Portland Clean Energy Fund interest to restore 48 positions across multiple bureaus, while Ordinance 2026-223 relied instead on General Fund contingency draws. An amendment to 2026-223 passed 8 to 4 removing language that would have directed staff to consider PCEF interest as a future contingency replenishment source, with supporters of 2026-222 arguing their approach was superior due to PCEF interest being stable and immediately available.
Council debated two competing supplemental budget ordinances with differing approaches to restoring public safety positions: Ordinance 2026-223 would draw $9.96 million from General Fund contingency to restore 30 positions, including $3 million for police training, while Ordinance 2026-222 would use PCEF interest to restore 48 positions across multiple bureaus. An amendment removing language that critics said would pressure the charter-protected Office of Community Based Police Accountability to underspend its budget passed 8 to 4, with final votes on both ordinances scheduled for July 22.
Council debated two competing supplemental budget ordinances—Ordinance 2026-222, which would restore 48 positions using $7 million in PCEF interest, and Ordinance 2026-223, which would draw $9.96 million from General Fund contingency to restore 30 positions focused on public safety. An amendment to remove references directing OCPA underspending to replenish contingency funds passed 8 to 4, with final votes on both ordinances scheduled for July 22.
At first reading, a proposed amendment from Councilors Koyama Lane and Kanal to restore a senior center position, an international relations coordinator, and a ceasefire program coordinator to Ordinance 2026-223 was introduced and split into three parts for separate votes, but the meeting ran late before any votes on these amendments could be taken. Final votes on both competing supplemental budget ordinances are scheduled for July 22.
Ordinance 2026-222 ('Save Our Services') proposed restoring transportation bureau positions among 48 total cuts reversed using approximately $7 million in PCEF interest, while the competing Ordinance 2026-223 did not specifically include transportation positions in its 30-position restoration focused on public safety. No final vote was taken; both ordinances are scheduled for final votes on July 22.
City Attorney Robert Taylor reported a legal victory in the city's case against the owner of the McAdam building, which houses an ICE facility, after a circuit court allowed a hearings officer to issue a ruling that came out in the city's favor. Litigation in the matter is ongoing.
Not addressed in this meeting; the session's agenda was dominated by competing supplemental budget ordinances, with no mention of RICAP 11 land use code amendments or a second reading on this issue.