In a letter to county directors and commissioners this week, Multnomah County Chair Jessica Vega Pederson advised them to get ready for severe belt-tightening in anticipation of upcoming budget cuts.
Departments were instructed by Vega Pederson to submit three reduction packages detailing possible funding cutbacks of 8%, 10%, or 12%.
In the letter dated December 6, she stated that we will have to make difficult decisions, such as discontinuing programs and implementing more drastic cuts than have been necessary in prior years. Even though this isn’t the biggest deficit we’ve ever encountered, it’s still bigger than we can handle with modest, piecemeal cuts.
Government officials frequently request budget reduction plans from agencies, and it is still unclear what cuts the county will finally implement.
Vega Pederson’s request, however, comes as the county is facing a $21 million deficit in its general fund, which is the largest pool of discretionary cash available to the county, according to budget authorities. About 2.8% of the anticipated general fund income for the upcoming year would be represented by that $21 million amount. As the county works up its budget for the fiscal year 2025–2026, which starts in July, officials caution that the deficit may widen.
First and foremost, I want you to know that I rely on you to support me in making the difficult choices that will need to be made. The author is Vega Pederson.
Although it only makes up $760 million of the county’s $4 billion budget for this fiscal year, the general fund of the county provides funding for vital departments such as the Multnomah County Sheriff’s Office, the District Attorney’s Office, health programs, and other county services.
According to county authorities, it’s the biggest deficit the county has had since 2010, when they had to close a $36.5 million budget imbalance. The estimated budget shortfall at this time last year was $4 million.
According to Vega Pederson, her office’s main goal is to maintain the present levels of drug addiction, behavioral health, and homelessness initiatives. The majority of the funding comes from Metro’s homelessness services tax, which supports initiatives to lessen homelessness in the three biggest counties in Oregon.
According to the chair’s letter, departments will be expected to include specific strategic outcomes in their budget submissions, outlining exactly how their funds will be spent. Almost all departments will experience major cuts this year, according to county officials. The Multnomah County Sheriff’s Office, which already has trouble keeping jail employees, is the only department that is probably going to be spared from budget cuts.
Julie Sullivan-Springhetti, the county spokesperson, stated that our ability to staff our jails and keep the community safe will be our primary priority. Every other department will be equally impacted.
There will probably be layoffs. To lessen the cost impact, Vega Pederson has urged county administrators to fill only critical posts for the remainder of this fiscal year. According to officials, budget projections will also be impacted by other elements, including the approaching legislative session and an uncertain federal environment.
The Board of Commissioners will have two new members in January, leaving Vega Pederson and Commissioner Julia Brim-Edwards as its senior members. Last week, Commissioner Shannon Singleton took the oath of office.
Brim-Edwards expressed her satisfaction at having new perspectives on the budget and hoped the county board will begin considering ways to boost the local economy in order to prevent more financial difficulties.
Due in large part to the Portland area’s diminishing increase in property tax revenues as downtown property values plummet, officials projected growing deficits in the years to come. The county’s finances are also being strained by the expiration of federal COVID relief funding. A few initiatives have already ended this year as a result of those money disappearing.
According to Brim-Edwards, we are constrained if our local economy is not strong and thriving.
Over the following few months, as Vega Pederson’s office prepares her proposed budget, departments will submit their proposals to the chair. Commissioners will then convene work sessions to finalize the details. On June 12, a final budget will be put to a vote.
In order to prioritize the resources we need and achieve results that address the three main problems facing our community—homelessness, behavioral health, and public safety—I believe we will need to be quite rigorous about concentrating on our core county services. “Brim-Edwards said.”
Austin De Dios reports on programs, politics, and other topics in Multnomah County. You can reach him at @AustinDeDios, [email protected], or 503-319-9744.
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