- Comment on Capital Improvement Plan at April 23 meeting
- Hear report on efficiency and effectiveness on April 21
Salem, Ore. – On April 16, the City of Salem Budget Committee started its discussion of the Interim City Manager’s proposed budget for the 2026 Fiscal Year. The discussion focused on plans to address a $13.8 million budget shortfall.
In the three stories below, we will recap the last budget meeting and preview two upcoming meetings that are important to the budget process:
- Monday, April 21, 6 p.m. – Work session on Efficiency and Effectiveness measures aimed at making the most of our resources.
- Wednesday, April 23, 6 p.m. – Budget Committee meeting where the budget conversation continues
All of these meetings will be available for viewing on YouTube.
April 16 Budget Committee: Community Services Face Deep Cuts
At the April 16 Budget Committee meeting, the focus was on the big impact of potential cuts to Salem’s community services, including the Salem Public Library, parks, recreation programs and Center 50+, among others.
“This is an incredibly difficult moment for our community, staff and everyone here tonight,” said Interim City Manager Krishna Namburi. “Every reduction reflects people, programs, unmet service needs and the values we deeply care about. These are not the choices we wanted to make, but this is the reality in front of us.”
The cuts stem from a $13.8 million shortfall projected for Fiscal Year 2026 Budget. As required by state law, the Interim City Manager proposed a balanced budget.
Recent cost-saving measures and one-time revenues reduced the gap and saved 41 full-time-equivalent (FTE) jobs. However, the Proposed Budget still included significant reductions and could result in the loss of 51 additional FTE positions; 37 of these positions are filled and represent people and their livelihoods.
The cuts identified to balance the budget were made based on data gathered from the 2024 Revenue Task Force, polls and surveys that consistently ranked public safety as the community’s top priority.
The proposed budget does not account for the possibility of revenues from a local option levy on the May 20 special election ballot. If the levy passes, property tax revenue will be dedicated to preserving these services. If it fails, services will not continue at current levels of service.
Community members at the meeting shared how these services have positively impacted their lives and expressed frustration over the potential cuts. Library advocates also questioned the viability of deep cuts in staffing and hours.
Budget Committee members also raised questions on topics, including the what Library schedule would be like with 20 hours per week and the impact of a nearly 30% cut to the parks and recreation budget, which would end most City-sponsored recreation programs and reduce park maintenance. The City will provide responses to some of these questions at the April 23 Budget Committee meeting.
Council Work Session Focuses on Efficiency and Effectiveness
The Salem City Council will hold a work session on Monday, April 21, at 6 p.m. in Council Chambers to hear a report on performance auditing. The City Council’s Finance Committee regularly evaluates priorities for the City’s performance auditing program and provides periodic updates to the full Council. In September 2024, the committee identified key focus areas, including:
- Savings in the General Fund
- Efficiencies and cost savings by program budget and employee count
- Potential enterprise-wide impacts
- Alignment with the City’s strategic goals and Council priorities
- Negative impacts on other programs or services
- Legal mandates
For more details, visit the City’s Efficiency and Effectiveness Measures webpage.
Comment on the Capital Improvement Plan at April 23 Budget Committee Meeting
The Wednesday, April 23, Budget Committee meeting will start at 6 p.m. in Counciil Chambers The meeting will provide a chance to comment during a public hearing on the Fiscal Year 2026-2030 Capital Improvement Plan.
The Capital Improvement Plan is a five-year forecast that identifies major (capital) projects requiring the use of public funds over and above routine annual operating expenses.
A capital project creates, improves, replaces, repairs or permanently adds to City assets including land, site improvements, parks, buildings, streets, bike paths, bridges, utility improvements, major equipment, computer hardware and communication systems purchases.
The Capital Improvement Fund document and resources online can provide information about upcoming projects.
The Budget Committee will also review Strong and Diverse Economy, Urban Renewal Agency, Safe Reliable and Efficient Infrastructure result areas.
The Budget Committee will resume its work on April 30 and May 7.
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