City of Portland freezes most hiring, overtime and reclassifications to address current year budget challenges

To address continuing budget challenges, the City of Portland will freeze most hiring, overtime and employee reclassifications for the remainder of the fiscal year that started July 1.

The City Budget Office is projecting a significant gap in the General Fund, primarily due to Business License Tax revenue coming in $12 million below forecast, as well as unusually low year-end underspending and a large legal settlement. Estimates will be refined in the coming weeks.

City Administrator Michael Jordan announced cost-saving measures to staff today, as the administration prepares to bring its annual fall budget adjustment to the Portland City Council for a Nov. 5 vote.

"We want to be transparent about both the challenges and the steps we're taking to address them responsibly," Jordan wrote in a message to employees. "These temporary measures are designed to help us avoid more severe impacts later and ensure we can continue delivering the services our community depends on."

The freeze will take effect Oct. 1, with exceptions in place for frontline police, fire and 911 roles. An exception process is being established for other bureaus and programs, so critical needs continue to be met.

As of Sept. 5, the City had approximately 660 vacant positions - representing about 9 percent of the city's workforce. Of those, about 140 are frontline public safety roles. According to initial estimates, freezing the current vacancies would save roughly $6 million in the General Fund and up to $20 million in other funds from Oct. 1 through June 30.

The Portland City Council is slated to discuss the budget outlook during a work session on Oct. 22. Council meetings and agendas are available at Portland.gov/Council.