Prosper Portland presents FY26 proposed budget as community groups urge continued general‑fund support

Prosper Portland presented its proposed fiscal-year 2025–26 budget to City Council sitting as Prosper’s budget committee and outlined priorities that include continuing tax-increment financing (TIF) projects, a growing Strategic Investment Fund for lending, citywide small-business supports and workforce programs.

Board Chair Gustavo Cruz and interim executive director Shay Flaherty Bettine opened the presentation on May 20 and thanked community partners and the agency’s volunteer board. Tony Barnes, Prosper’s chief financial officer, laid out the agency’s calendar and explained the budget timeline: Prosper’s board approved a draft in January; outreach and stakeholder engagement continued through April; council was being asked to receive the proposed budget as the budget committee and final action by the board would follow tax‑supervising review.

Prosper’s proposed total resources totaled approximately $189 million in the documents presented, and about $153 million after removing the affordable‐housing set‑aside allocation — figures the agency said reflect multi‑year capital projects and funds that are carried from year to year for active redevelopment work. Tony Barnes described a multi‑year forecast showing active and sunsetting TIF districts with significant remaining resources, and six newly authorized TIF districts with limited first‑year increment as they stand up.

Shay Flaherty Bettine and Lisa Abwaf, director of development and investment, described how TIF investments and the Strategic Investment Fund (SIF) will be used for loans, grants and redevelopment projects. Abwaf highlighted several district projects: Gateway action‑plan investments for street and predevelopment work near the Gateway Transit Center; the Williams and Russell redevelopment, a community‑led project that includes affordable housing and a planned Black business hub; and tenanting activity at district-owned properties such as Alberta Commons and Lents Town Center.

Abwaf said Prosper’s small‑business Repair and Restore grant program had distributed more than 1,500 grants totaling nearly $7 million to repair damage and stabilize small businesses. The agency also reported SIF activity: over the past two years Prosper closed 27 loans and invested more than $44 million to support businesses and commercial development.

Andrew Fitzpatrick, interim economic development director, detailed citywide programs funded with general fund, cannabis tax and other sources. He described the Inclusive Business Resource Network (IBRN), workforce investments with WorkSystems Inc., the new Office of Small Business, and film and events programs that drive local spending. Fitzpatrick said the mayor’s proposed budget included reductions that translate to roughly a 12% reduction in Prosper’s ongoing general‑fund allocations for community programming. He warned that without replacement of $2 million of ongoing general‑fund support currently proposed as one‑time, core programs — including workforce investments and small‑business technical assistance — could face steeper cuts in FY 2026–27.

A panel of community organizations and program partners testified immediately after the presentation. Speakers representing neighborhood prosperity networks, community development corporations, workforce providers and business associations urged the council to preserve operating funds that support: neighborhood small-business stabilization grants, workforce training for low‑income residents, apprenticeship pipelines, and tenanting and technical assistance for culturally connected business spaces.

Key testimony included: - WorkSystems Inc. said the Portland Economic Opportunity Program (EOP) and NextGen efforts serve hundreds of residents annually with high placement rates and strong wage outcomes, and that proposed cuts would reduce services for people who face significant barriers to employment. - Representatives of neighborhood organizations (NAYA, Rosewood Initiative, Apano, Historic Parkrose) described year‑over‑year work stabilizing small businesses, administering Enhancement and Repair & Restore grants, and building locally led TIF action plans in East Portland and Northeast neighborhoods. - Portland Youth Builders and other workforce providers described training that leads to apprenticeships and jobs in the construction trades; providers said public funding is needed to sustain long‑term wraparound services and placement support. - Business representatives, including Better Portland and Portland State University, described Prosper’s role in business support, workforce linkages, and campus and neighborhood redevelopment projects.

Several speakers urged council to maintain or restore general-fund backing for citywide programs such as the Office of Small Business, IBRN contracts and workforce navigators. Prosper staff said they would continue to look for efficiencies and to deploy revolving SIF resources to leverage private investment alongside public funds.

Ending: Councilors noted the depth of public testimony and asked staff for follow‑up materials. Prosper’s budget will be scheduled for adoption by the Prosper board after certification by the tax‑supervising and conservation commission; councilors also discussed the need for additional time for council questions and an anticipated follow‑up work session.