FILE - Multnomah County Chair Jessica Vega Pederson pictured in 2025 in a county warming shelter. Vega Pederson is not running for reelection.
Kristyna Wentz-Graff / OPB
Seeking to close major funding gaps, Multnomah County’s top elected leader suggests cutting 166 full-time jobs, closing more than 600 homeless shelter beds and reducing funds for a county-sponsored afterschool program by more than $1 million.
Chair Jessica Vega Pederson released her proposed budget Thursday morning, saying the “tough choices” will help the county navigate its financial quandary and prop up social services and public safety programs that serve many county residents.
“These are necessary to produce a sustainable budget, without over-reliance on one-time dollars,” Vega Pederson said in a news release. “The tough tradeoffs underscore my commitment to fiscal integrity, effective governance, and most importantly – direct services.”
Multnomah County is facing an $11 million shortfall in its general fund, and a more than $67 million gap in the homeless services department.
The county blames its financial woes on Portland’s ailing downtown real estate market, which continues to provide less property tax revenue to county coffers than leaders had anticipated. Meanwhile, the federal government has pulled back social safety funding, all while county personnel costs are outpacing revenue, the Thursday morning release said.
Still, the county says the $3.9 billion budget funds government efforts to tackle the region’s top issues: homelessness, addiction and behavioral health. In addition, the budget “ensures that none of the roughly 9,000 formerly homeless neighbors supported right now living in permanent housing will have to return to the streets,” the county’s news release said.
“Despite the challenges we face today, this budget reflects my commitment to a thriving future for Multnomah County,” Vega Pederson said at a board meeting Thursday morning.
The proposed budget comes days before Portland Mayor Keith Wilson will release his proposal to fill the city’s nearly $170 million budget gap, which also threatens to close homeless shelters.
The city and county are locked in a financial dispute over a human services contract that requires the city to give the county roughly $31 million each year.
The city argues that the contract also directs the county to pay around $38 million to the city to oversee village-style shelters, but the county says that interpretation is incorrect. Neither has committed to giving the other the amount of money they believe they’re owed.
As the region contends with a housing crisis, Vega Pederson emphasized that her proposed budget allocates $10 million in one-time general fund money to speed up the process of moving hundreds of people from shelters to homes.
It also dedicates $3.5 million toward preventing evictions, $9.3 million toward Portland’s Behavioral Health Resource Center and millions more toward programs aimed at helping immigrant communities facing increased pressure from the Trump administration.
But the budget would also cut $1.2 million from the SUN Community Schools program, an afterschool program that serves about 18,000 students, “bringing the remaining number of locations to 83, down from 92,” the county says.
Thursday’s release quickly sparked pushback from staffers who called on the board to find ways to preserve programs in everything from animal services to housing assistance and addiction support.
“We demand that the county leaders stop treating essential workers like disposable line items to rebalance their books,” said Rachel O’Rourke, an acute care coordinator for the county’s crisis line. “It’s time to freeze administrative bloat and make a fearless commitment to the frontline staff who deliver direct services and who actually keep this community alive.”
Commissioners said Thursday that they are reviewing Vega Pederson’s proposal and are seeking feedback as the budget process begins. Some acknowledged that the county faces hard decisions ahead.
“I think this is a very, very difficult situation for the county,” said Commissioner Meghan Moyer. “There is no path that does not include cutting really excellent services that the county provides.”
Commissioner Julia Brim-Edwards voiced concern over the proposed cuts to shelter beds, noting that they would come amid broader cuts and a homeless services provider going out of business.
“Those impacts are going to be immediate: 1,000 people potentially without a shelter bed and services, experienced staff that we’ve invested in that are going to be laid off,” said Brim-Edwards said, who noted that the county had previously made efforts to invest in homeless services staffing.
“We made a big investment,” Brim-Edwards said. “This seems just like the pendulum’s swinging back the other way.”
Vega Pederson, a former state lawmaker who’s been on the county board since 2017, announced in December that she would not seek a second term as chair. Brim-Edwards and fellow board member Shannon Singleton are running to replace her in November.
Correction: A previous version of this story had the incorrect figure for the county’s budget deficit. OPB regrets the error.
