Multnomah County Chair Jessica Vega Pederson has proposed a $3.9 billion balanced budget that reduces spending, eliminates positions and scales back some services while attempting to preserve housing, public safety and health programs for residents most in need.
The proposal comes as the county faces a second consecutive year of financial strain driven by declining property tax revenue, reduced federal and state funding and rising operational costs. Overall, the county’s budget is down $93.2 million from the previous year, including an $11.1 million shortfall in the General Fund, the portion most directly controlled by county leaders.
To close that gap, the budget would eliminate 166 full-time positions across departments.
“I made tough choices to prioritize vulnerable neighbors and improve how our government works,” Vega Pederson said in a letter accompanying the proposal. “These are necessary to produce a sustainable budget, without over-reliance on one-time dollars. The tough tradeoffs underscore my commitment to fiscal integrity, effective governance, and most importantly, direct services.”
Housing and homelessness services remain a central focus, even as the county faces a $67 million funding gap in its Homeless Services Department, largely due to the expiration of one-time funding. The proposal ensures that roughly 9,000 people currently living in permanent supportive housing will not lose that support. It also includes $10 million in one-time funding to move people more quickly from shelters into housing, a shift officials say could open space for an additional 770 people.
At the same time, the budget reduces shelter capacity by closing 605 adult shelter units and cutting 90 scattered-site vouchers for families, leaving 1,667 county-funded shelter units overall. The proposal also adds $3.5 million in ongoing funding to help prevent evictions for about 500 additional families.
Public safety spending continues to account for about half of the General Fund, supporting the Sheriff’s Office, District Attorney’s Office, Department of Community Justice and corrections health services. The budget maintains current jail capacity while reducing the Sheriff’s administrative costs by 0.25 percent. The District Attorney’s Office would see a nearly 5 percent reduction, though the proposal includes an additional $870,000 to expand its Digital Evidence Management Unit, bringing total funding for that program to $1.3 million.
The proposal also shifts pretrial services away from the Sheriff’s Office and Department of Community Justice to the circuit court system, supported by a $1 million one-time investment, aligning Multnomah County with practices used elsewhere in Oregon.
Behavioral health and substance use services remain funded under the proposal, including $9.3 million for the Behavioral Health Resource Center in downtown Portland, which provides services for people experiencing homelessness and mental health challenges. The budget also preserves the county’s deflection program, which directs individuals away from jail and into treatment, and continues development of a permanent 24-hour sobering center. School-based mental health services are maintained, with a focus on improving access for students with the greatest needs.
The budget includes targeted support for immigrant and refugee communities, including continued funding for the Immigrant Resilience Program, which helps families with rent, food and utilities, and a $3 million investment in the Bienestar de la Familia program, which provides culturally specific and multilingual services. An additional $200,000 in one-time funding would assist families facing eviction while waiting for federal housing-related support.
The proposal also reflects tradeoffs in youth services. The SUN Community Schools program, which serves about 18,000 students, would see a $1.2 million reduction, reducing the number of sites from 92 to 83 while preserving most existing locations.
The proposed budget now moves to the Multnomah County Board of Commissioners for several weeks of review, public hearings and potential revisions before a final vote scheduled for June 4. Residents will have opportunities to provide input at public hearings in late April and May.
