The City of Salem’s FY 2026 – FY 2030 financial forecast predicts a $13.8 million budget shortfall expected for the upcoming Fiscal Year 2026 budget. The Fiscal Year 2026 is set to begin July 1, 2025 and end June 30, 2026. In each of the next four years, the forecast shows the gap growing, largely due to inflationary pressures and cost increases across our economy, including employee salaries, retirement, benefits, and other ongoing expenses.
Salem’s Budget Committee will consider this updated five-year financial forecast at their January 15, 2025 meeting. The gap in the City’s General Fund has narrowed from the October 30, 2024 preliminary estimate of $17.7 million to $13.8 million with input from a Forecast Review Team, and further modifications to reflect better, available information.
“The forecast continues to show a difficult financial path ahead for Salem’s General Fund. While we still have a lot of work to do, I’m grateful for the community interest, time, input, and care as we consider our options to bring spending in-line with available revenue,” says Keith Stahley, Salem City Manager, “While we work to set the priorities of the budget, all city employees continue to be ’at your service‘ to the residents of Salem.”
Learn about next steps and why the 5-year forecast is important
