Press Release: Councilors Green and Dunphy Propose Budget Amendment to Zero Out General Fund Grant to Prosper Portland

May 14, 2025

FOR IMMEDIATE RELEASE

Contact: Maria Sipin

Councilors Green and Dunphy Propose Budget Amendment to Zero Out General Fund Grant to Prosper Portland

Portland, OR - Portland City Councilors Mitch Green and Jamie Dunphy have introduced a budget amendment that would eliminate the City's $11 million General Fund grant to Prosper Portland, directing the agency to instead fund its operations through its $50 million Strategic Investment Fund-a revolving loan program used to finance local businesses. The amendment comes as the City faces an unprecedented budget shortfall, forcing deep cuts across nearly every bureau.

"Prosper has brought us a budget that is out of alignment with the City's priorities right now," said Councilor Green. "We're asking every bureau to tighten their belts as we focus on addressing crises of livability and homelessness. Prosper is no different, and I see no reason why we should hold their Strategic Investment Fund harmless when we're looking at deep cuts across City programs and staff. This is just good governance."

The amendment would redirect the $11 million back to the General Fund in order to address additional critical priorities expressed by members of City Council, including:

• Keeping Portland Parks fully operational
• Restoring and expanding broken window grants for small businesses
• Providing direct support for small businesses and economic recovery for Black, Indigenous, and People of Color (BIPOC)
• Investing in the James Beard Public Market

"It's my view that addressing unsheltered homelessness is economic development," Green added. "I'm a long-time supporter of revolving loan funds, but they need to be squarely in the hands of the public sector and support our investments in livability."

Prosper Portland has long faced criticism for its lack of transparency and questionable effectiveness. As a quasi-public entity, it manages hundreds of millions in public dollars with questionable oversight aside from its budget being subject to City Council approval under the Portland City Charter. Recent scrutiny has highlighted its tendency to prioritize large developers and well-connected business interests over equitable community needs.

"I remain deeply concerned about Prosper Portland's role as the City's economic development agency," said Councilor Dunphy during the hearing on Wednesday. "We've created an arm's length structure that lacks direct electoral oversight."

Councilor Green as the co-chair of Council's Arts and Economy Committee started a growing dialogue about Prosper Portland, their governance structure, and Tax Increment Financing (TIF) Districts. Labor, housing justice, and anti-displacement advocates provided public testimony at a recent Committee meeting.

Amanda Pham Haines, statewide housing justice manager at Unite Oregon stated in her TIF presentation, "We know that City Council has a responsibility to invest in economic development and we recognize the difficult balance you have to strike. But we also know that without meaningful oversight and accountability, public investments can and will reinforce the same cycles of displacement that Portland's urban renewal policies have historically created. Portland claims a reputation of inclusion and equity, yet too often fails to back it up. This disconnect has fostered the illusion that we are a city governed by its people rather than its investors."

Tyler Fellini, executive director of Portland Jobs with Justice testified, "Prosper Portland increasingly resembles a slush fund for the City's business elite."

As Portland City Council amends the Mayor's Proposed Budget this month, they also convene as Prosper Portland's Budget Committee tasked to approve their budgets.

"The only direct influence that Council has is through the budget-setting process, and we applaud Councilor Green for taking that charge seriously," said Olivia Katbi, chair of the Portland Democratic Socialists of America. "It's time to reimagine what 'economic development' means and shift away from its current iteration of directing public funds for unaccountable private profit-making, in favor of developing a democratic economy that benefits all of us, not just the wealthy few."

The amendment underscores the Council's authority-and responsibility-under the City Charter to exercise full control over Prosper Portland's budget, a power previous councils have been reluctant to wield. With Portland facing a fiscal crisis, the proposal challenges the agency to operate within its means while freeing up millions for urgent public needs.

Council approves Prosper Portland's budget on May 21st.

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