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PORTLAND, Ore. (KOIN) – The City of Portland is facing a budget challenge. In response, administrators are cutting down on hiring, overtime, and reclassifications for the rest of the fiscal year.
As of Sept. 5, there are roughly 660 vacant positions for the city. By not filling these positions, the city hopes to save nearly $6 million of its general fund and up to $20 million of other funds between Oct. 1 and June 30, 2026.
The decision comes as Portland faces a gap in its general fund. According to the city, the decision was made after the Business License Tax revenue came in $12 million below forecast and the city also saw unusually low year-end underspending and a large legal settlement.
“We want to be transparent about both the challenges and the steps we’re taking to address them responsibly,” City Administrator Michael Jordan wrote 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.”
Frozen positions include the recently opened application to replace City Administrator Michael Jordan, who took over the new position when the government switched its style of government at the start of 2025.
According to the City of Portland, “No new recruitments can begin without an approved exception.”
Exceptions are already in place for frontline police, fire, and 911 roles. An exception process is also being established for other bureaus and programs, but their current status is unknown.
The freeze will take effect Oct 1, 2025, ahead of the city’s annual fall budget adjustment, which will be up for a vote by the Portland City Council on Nov. 5.
Stay with KOIN 6 News as this story develops.
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Aimee Plante
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