Portland council adopts FY2026 budget with new spending for childcare, inspectors and council pay

At a June meeting of the Portland City Council, members approved the city's FY2026 appropriation resolve (order 2142425) after debating and voting on eight proposed amendments that add roughly $496,337 to the proposed property tax levy. The final package adds funding for childcare vouchers, before-and-after-school care, additional inspectors in permitting and rental registration, an amended plan to create a community engagement coordinator, changes tied to HVAC services and a one-time council pay increase.

Why it matters: The budget passed amid concern about reduced federal and state funding and continuing local needs for shelter services, child care and municipal inspections. Several amendments were pitched as targeted responses to immediate gaps (childcare vouchers and aftercare slots) while others were framed as capacity-building steps (additional inspectors, a community engagement position) or compensation changes intended to broaden access to public service (council pay).

The council began the fiscal debate after corporation counsel and staff summarized eight amendments that had been added to the appropriation resolve. Corporation counsel said there were eight total amendments, including proposals to add $100,000 for a consortium childcare voucher program, $118,000 for a community engagement coordinator, $102,715 for an additional marijuana inspector, $101,286 for an additional rental registration inspector, $80,000 tied to HVAC changes, and $64,000 for before-and-after-care expansion; other adjustments were described in council backup materials.

City Manager Danielle West told the council staff had reviewed departmental budgets extensively and that the city faces an estimated $13 million reduction in federal and state funding that the FY2026 budget must absorb. "We are continuing forward with the proposed budget that's in front of you, because of that uncertainty," West said, adding staff had worked to limit burden on taxpayers where possible.

Major amendments and council action - Childcare voucher program: Councilor Bullitt introduced an amendment to fund a short-term childcare voucher pool for families to bridge gaps until state subsidy becomes available. The council debated whether the amount should be $50,000 or $100,000; a motion to reduce the figure to $50,000 failed and the $100,000 allocation was approved as part of the budget amendments. - Council pay increase: Councilor Phillips sponsored an amendment to raise council pay by 25% (a roughly $33,000 total cost shared between city and school board as required by charter relationships). The amendment passed 6-3 (Yes: April Fournier, Councilor Sykes, Councilor Ali, Councilor Pelletier, Councilor Bullock, Councilor Phillips; No: Ben Grant, Councilor McNevich, Mayor Mark Dion). The increase will take effect with the FY2026 pay cycle in July unless other implementation steps change that schedule. - Community engagement coordinator: Councilor Phillips's amendment to add $118,000 for a community engagement coordinator was amended on the floor. The mayor proposed appropriating the money now but using a portion for a six-month assessment of existing community engagement efforts, hiring a consultant, and designing a clear job description and evaluation standard before making a long-term hire. The council approved the amended approach to proceed with planning and a staged hire. - Inspectors and permitting staff: Councilor Grant's amendments to add an additional rental registration inspector ($101,286) and to add capacity for permitting/inspection related to other changes were discussed and approved. Permitting & Inspections Director Jessica Hanscomb told the council staff had completed roughly 4,000 unit inspections so far this year and that an additional inspector would materially increase inspection capacity and timeliness. - HVAC and school services: After Portland Public Schools chose to outsource some HVAC services, staff brought a technical amendment to reflect that change and avoid a layoff; the city added $80,000 to reassign divisional labor and ensure continued service in other city-maintained buildings. Council approved the HVAC-related amendment. - Before-and-after care expansion: An amendment to add four full-time Recreation positions to expand before- and after-school slots (net $64,000 to the levy after projected program revenue) passed; staff projected approximately 52 new childcare slots from the change.

Roll call and budget totals: When the amended appropriation resolve was adopted, the city manager reported the revised FY2026 property tax levy totaled $115,926,519, representing an increase of about $496,337 from the finance committee's recommendation after the amendments. Staff said the assessor's revaluation and an active appeals period could still change the final mill rate and tax bills; the council committed the budget with the amendments in place.

Public comment and stakeholder input: Support for holding social service and shelter funding steady came from Preble Street (Donna Yellin), which asked the council to avoid cuts to emergency shelter and outreach programs given state and federal uncertainty. Council members also heard public comments about the budget process and transparency, and multiple councilors emphasized continued committee work to address operational details (for example, how inspections will be documented and how the engagement coordinator's role will be evaluated).

What the council directed: Staff were directed to implement the approved amendments and return any necessary technical language to finalize FY2026 spending. For the community engagement position, staff were directed to use a portion of the appropriation to contract for a six-month analysis and job design before hiring.

Ending note: Council members said they expect continued follow-up in committee (for rent-control and inspection processes) and in departmental briefings to evaluate the effects of the newly funded positions and programs. The manager and finance director will update the council as state and federal funding decisions and the assessor's appeals process clarify final tax impacts.