Multnomah County unveils $4 billion budget plan for 2026 amid $77 million shortfall
PORTLAND, Ore. (KOIN) — Multnomah County unveiled the proposed $4 billion budget for 2026 on Thursday, showing investments in community safety and health outcomes, but also staffing cuts and reduced funding for select homelessness services amid a $77 million shortfall.
The release of the new budget comes after Vega Pederson shocked state and regional leaders by disclosing the county's need for funding to help maintain services, including shelter beds, rent assistance and more, back in February. The sudden ask included an additional $55 million from the state and $30 million in unspent administrative funds from Metro.
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Currently, there's no definitive confirmation of direct state funding for Multnomah County for the 2026 fiscal year.
The Chair's budget reduced the overall funding for the Homeless Services Department by 22% ($29.4 million), including deducting $1.2 million from employment programs, administrative positions, as well as adult parole and probation services.
According to the County, a combination of factors — including recovery from the COVID-19 pandemic, a rise in downtown office vacancies, a rise in inflation and the higher cost of living– led to a decrease of $77.3 million in the County's total operating budget.
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Still, the current budget protects community safety with investments of $142.5 million, allowing the Multnomah County Sheriff's Office to maintain current staffing levels and address staffing shortages. The funds will further support initiatives such as youth violence prevention programs, services for crime victims and survivors, as well as provide $2.3 million towards prosecutor positions in the District Attorney's Office.
A separate portion of the budget will go towards ensuring a total of 3,622 shelter beds, community health centers, a downtown behavioral health resource center, planning work for a 24/7 drop-off sobering and crisis center and more. The county is also providing $10 million to continue shelter programs, including Safe Rest Villages and Temporary Alternative Shelter Sites (TASS).
It will further fund initiatives geared towards community well-being, such as Preschool for All, DEI positions, gender-affirming shelter and day spaces, as well as animal service staffing and a redesign of the Multnomah County animal shelter.
The budget further allocates $32.7 million for programs serving children and families at risk of homelessness and additional emergency rent assistance.
'Under my leadership, our community can trust that the County will focus on helping people who face the most challenges, as well as preserving the most direct and impactful ways we can serve them,' Vega Pederson said. 'My budget ensures no shelter bed is lost and no health clinic closed. Still, it is not possible to make cuts to this degree and not have it affect the services we provide.'
While Vega Pederson is asking for the District Attorney's Office to make a $1 million cut to his office, DA Nathan Vasquez has countered, saying he wants to add 26 positions in his office.
Vasquez will respond to the budget proposal at a press conference at 1 p.m.
If approved, the budget will go into effect at the beginning of the fiscal year on July 1, 2025.
Stay with KOIN 6 News as we continue to follow this story.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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