City Council convenes as Prosper Budget Committee to approve the FY 2026-27 Budget

Council is convened as the Prosper Portland Budget Committee to approve the FY 2026-27 Proposed Budget. Requested amendments to the Proposed Budget and approval of amendments may be introduced and voted on prior to final budget approval.

The 2025 Insights and Indicators report provides a comprehensive overview of Prosper Portland's recent economic and urban development work and its impact across the city. The report highlights the implementation of Advance Portland, the City of Portland's five-year economic development strategy, alongside the administration of Tax Increment Finance (TIF) districts and programmatic responses to economic challenges and opportunities shaped by the pandemic and evolving economic conditions. Importantly, the report also disaggregates economic data and program outcomes by Council districts and newly formed TIF districts, offering a clearer picture of how investments are reaching communities across Portland. Building on these insights, Prosper Portland's General Fund, Cannabis Tax Fund, CDBG, and Enterprise Zone Funds provide approximately $20 million in critical citywide resources aligned with Advance Portland goals. These investments are designed to strengthen economic opportunity and resilience across Portland's communities. They support traded sector business growth and innovation; expand opportunities for BIPOC entrepreneurs through technical assistance, grants, and business development programs; invest in vibrant Central City and neighborhood commercial districts; and connect Portlanders to high-quality jobs through workforce development partnerships and initiatives. Together, these resources help stabilize small businesses, create pathways to economic mobility, and foster more inclusive economic growth citywide.However, the FY 2026-27 Proposed Budget also includes significant reductions that will directly impact these outcomes. Adjustments to the General Fund include a $2.1 million reduction in one-time funding for staffing and administration, as well as an additional ongoing reduction of 7% ($793,055). While the Mayor's Proposed Budget recommends restoring $2 million for the Storefront Program and partially backfilling expiring workforce development funding, ongoing reductions will still have measurable impacts on service delivery.These reductions translate into fewer resources reaching Portlanders and small businesses. Adult and Youth Workforce Development programs, including NextGen, the Community Workforce Navigator Program, and the Economic Opportunity Program, are expected to serve fewer participants annually. Prosper Portland will work with workforce partners to minimize current service level reductions. Similarly, reductions to Inclusive Entrepreneurship programs will decrease access to technical assistance for approximately 175 small business owners.In total, anticipated net service level reductions may result in 300 to 900 fewer workforce participants depending on type of programming that is reduced (from a total of CSL of 1,600 served), and 175 fewer small businesses served (an estimated 31% decrease in IBRN services). These changes represent a significant reduction in the City's ability to support economic mobility, small business stability, and inclusive growth.Tax Increment Finance (TIF) districts will continue to play a critical role in advancing economic development priorities, though their capacity varies based on projected revenues. Districts such as Gateway, Cully, 82nd Avenue, and East 205 are forecast to receive tax increment resources to implement Action Plans and support infrastructure and development projects. However, several districts including the three new Central City districts and areas such as Sumner, Parkrose, Argay, and the Columbia Corridor are not currently projected to receive new TIF resources. In these areas, more limited residual resources from expiring districts will be used to sustain planning efforts and targeted investments.Despite these constraints, TIF investments will continue to support key community outcomes aligned with Advance Portland. In the Central City, resources will advance projects such as the Old Town Action Plan, Broadway Corridor, OMSI Master Plan, and South Waterfront/North Macadam infrastructure, laying the groundwork for mixed-use, mixed-income development and increased economic activity. In neighborhood commercial districts, investments will help complete longstanding community development initiatives, fund infrastructure improvements, and provide grants and loans to small businesses along key corridors.Additional investments will continue to support BIPOC entrepreneurs through access to capital, affordable commercial spaces, and targeted grant programs, while workforce and economic development efforts will connect Portlanders to quality jobs through major infrastructure projects, business expansion, and public-private partnerships.Taken together, the 2025 Insights and Indicators report demonstrates the tangible impact of Prosper Portland's investments in communities across the city. At the same time, the FY 2026-27 budget reductions underscore the direct relationship between available resources and economic outcomes. Reduced funding will limit the scale and reach of programs that support workers, entrepreneurs, and neighborhood vitality, ultimately affecting Portland's ability to sustain inclusive economic growth.

Prosper Portland staff developed the FY 2026-27 Draft Budget in close collaboration with the 15-member Community Budget Committee (CBC), whose members reflect a diverse cross-section of Portland's communities, industries, and neighborhoods. Through four meetings during the budget cycle, the CBC provided input to ensure the budget reflects community priorities. The Prosper Portland Board also held a public work session on January 28, 2026, to review General Fund programming and TIF district plans included in the Proposed Budget.Prosper Portland's FY 2026-27 Proposed Budget advances community-centered interventions and investments aligned with Advance Portland: A Call to Action for Inclusive Economic Growth. This budget is designed to support Portland's small businesses, traded sector industries, and Central City and neighborhood commercial districts by helping them stabilize, grow, and better serve their communities. These outcomes are achieved through community-driven, equity-focused programs such as IBRN, Mercatus, My People's Market, Portland Means Progress, TIF district action plans, small business grants and loans, and the Neighborhood Prosperity Network.Recognizing the importance of strong, diverse small businesses to thriving communities, the budget prioritizes resources for workforce training and development, business expansion, and innovation. These investments help local workers access quality jobs, support entrepreneurs in growing their businesses, and enable industry partners to deliver sustainable, green products and services. The budget also supports activation of major events that increase foot traffic, strengthen neighborhood vitality, and boost tourism—benefiting local businesses and residents alike. Continued funding from the Recreational Cannabis Tax fund for Reimagine Oregon and IBRN ensures sustained support for communities historically underserved by economic development programs.Ongoing engagement with community and neighborhood organizations further informed the status and direction of TIF districts and their action plans, ensuring that investments are responsive to local needs and priorities. The CBC's input is documented in a letter included in the Budget Process section of the Proposed Budget. These continued partnerships help ensure that economic development strategies in FY 2026-27 are shaped by and for the communities they serve.

Prosper Portland's FY 2026-27 Proposed Budget totals $202 million in expenditures and 94 positions, reduced by 10 positions from FY 2025-26 due to a reduction in force announced just prior to the release of the Proposed Budget. This reduction reflects ongoing General Fund resources, delayed implementation and returns from the Strategic Investment Fund and new Tax Increment Financing (TIF) Districts.The Proposed Budget is currently balanced using:The latest updates on projects and programs and resources from TIF District community action plans;The Mayor's General Fund budget proposals, Recreational Cannabis Tax Funds, and Community Development Block Grant (CDBG) funds; andUpdated estimates for loan portfolio and property income revenues.In total, the budget includes $12.6 million in ongoing, one-time General Fund resources, $3.2 million in Recreational Cannabis Tax Fund resources, $118 million for TIF district spending, and $68 million in grants, PCEF, Strategic Investment Fund, and other planned spending.The Strategic Investment Fund includes $28 million in planned investments in middle-income housing, small business lending, and commercial lending and acquisitions, as part of an overall $49 million four-year investment strategy that began in FY 2025-26.

Prosper Portland's Green Building policy establishes certain LEED standards for all property dispositions, leased real property, and projects receiving specified levels of financial assistance included in the FY 2026-27 Proposed Budget.The FY 2026-27 Proposed Budget includes funding for implementing Advance Portland and the Green Cities cluster, working collaboratively with a broad category of companies producing innovative products, services, and technologies that benefit the environment or conserve natural resources. The FY 2026-27 Proposed Budget includes new programs to be implemented by PCEF funding, providing resources to help small business and property owners attain energy saving improvements through grants, loans and technical assistance.