Chuck Slothower//October 25, 2024//
Portland Mayor Ted Wheeler on Friday called for significant budget cuts across city government, with “larger cuts to bureaus whose funding sources are seeing more dramatic declines, such as Parks (& Recreation) and Permitting & Development.”
The reductions set for Portland Permitting & Development (PPD) will likely delay already lengthy building permit processing times.
“Simply put, expenses are growing faster than revenues,” Wheeler said in a written statement. “We owe it to Portland’s incoming leaders, and to our community, to prepare now for the tough choices ahead.”
Portland developers have long complained of lengthy waits for building permits that can stretch for more than a year. In a bid to streamline permit processing, the city reorganized the agency effective July 1. Permit staffers were brought in from other bureaus and the Bureau of Development Services name was changed.
Commissioner Carmen Rubio, who led the reorganization, said the city must find a better way to fund the permitting agency, which tends to suffer deep cuts during economic downturns and then struggle to add staffing during expansion periods.
“With a large budget deficit anticipated and permitting revenues significantly declining and reserves running low, this guidance is flagging something we’ve known for several years now: We need a better way to keep our permit teams staffed up when there is an economic downturn that is largely out of our control,” Rubio said in a written statement. “That analysis is currently under way, and I think we’re all eager to see the results.”
Wheeler’s budget guidance called for 5 percent cuts to all bureaus except police, fire and emergency communications, plus scenarios for 8 percent cuts.
In January, 73 permitting bureau positions were eliminated. Then in June, City Administrator Michael Jordan suggested more cuts were to come.
The agency has 331 employees, and an annual budget of $104 million — a small fraction of the overall $8.2 billion city budget.
Ken Ray, a spokesman for PPD, said Friday that it would be “premature to comment” on proposed budget cuts.
An updated economic forecast is expected in December, and a trial budget will be presented in February 2025 for community feedback. The newly elected mayor and 12-member City Council would carry out any budget cuts.
PPD may need a general fund appropriation in 2025, according to Rubio.
“I appreciated the mayor and council’s support for a general fund investment in our permitting staff this past year, and I expect there may need to be similar conversations next year,” she stated. “I think we all agree that Portland needs to be ready when development permitting picks back up again.”
Portland’s lagging development economy isn’t likely to improve soon, a major multifamily developer said.
“It’s still going to be a while, I think, before we see a return to the development levels we’ve had historically,” said Tom DiChiara, principal of Cairn Pacific, which has helped transform a former industrial area of Northwest Portland into a mixed-use neighborhood now known as Slabtown.