Portland finance committee reviews state budget risks, eight proposed city budget amendments ahead of June 23 council vote

Portland’s Finance Committee on June 18 heard an overview of state budget changes that could affect the city’s revenue and several proposed city budget amendments ahead of a full Council vote scheduled for Monday, June 23.

The committee received the state update from Brendan O’Connell, the city’s finance director, who said one “of the most problematic pieces of the budget was the per bed night cap” in a state rule he identified as Rule 26. “Our costs of providing service at the homeless services center are $87 per night and the state has put a rule in place basically saying that the most anyone can request is a maximum of 47 per night,” O’Connell said, adding that the state would reimburse at 70% above that cap. He said legislative relief appears unlikely before the final state budget is enacted.

Why it matters: the cap could widen the gap between the city’s actual costs to operate shelters and the state reimbursements Portland receives, potentially increasing pressure on local budgets or service levels.

Committee members also heard that a governor’s proposal to cap general assistance after three months has not advanced in the legislature. O’Connell said “there may be some 1‑time funds added into the state general assistance budget which some of which could come to the City of Portland,” and that the city manager would likely recommend reducing planned use of the city’s unassigned fund balance if one‑time state revenue materializes.

The meeting then reviewed eight specific amendment proposals that councilors or staff plan to bring to the full Council on June 23. None were voted on during the committee meeting;…