Portland City Council debates Prosper budget cuts and SIF funding alternatives

The Portland City Council held a work session on May 14, 2025, focusing on budget discussions, particularly regarding the allocation of funds for Prosper Portland. The meeting began with a review of the current budget situation, highlighting the significant waiver of $137 million in system development charges. Council members expressed the need for these funds to support small businesses and community initiatives.

Councilor Novick raised concerns about a proposed amendment by Councilor Greene, which suggested zeroing out the general fund allocation for Prosper Portland. Novick requested a detailed analysis of the potential consequences of this amendment, emphasizing that such a decision could lead to the loss of critical programs aimed at supporting small businesses and workforce development, as well as the potential reduction of approximately 30 staff positions.

In response, city officials clarified that while some funding could be reallocated from the Strategic Investment Fund (SIF) to mitigate the impact of the general fund cuts, this approach would ultimately jeopardize the fund's long-term sustainability. They noted that historically, reinstating general fund allocations after cuts is challenging.

Councilor Greene defended the amendment, stating that it would not necessarily result in a loss of programs, as the budget could be adjusted to maintain funding through SIF resources. He emphasized that the council has the authority to set Prosper Portland's budget in alignment with the city’s economic development goals, particularly those focused on supporting BIPOC communities and fostering inclusive growth.

The session concluded without a formal vote, but council members expressed a need for further discussion on the implications of the proposed budget changes. The council plans to continue deliberations in the coming days, with a focus on balancing fiscal responsibility and community support.