Salem, Ore. – On May 7, 2025, the City of Salem Budget Committee advanced the Interim City Manager’s proposed Fiscal Year 2026 Proposed Budget to the Salem City Council. The Fiscal Year 2026 (FY26) Budget begins on July 1, 2025, and addresses the $13.8 million budget shortfall in funding for Salem Public Library, parks, recreation programs and Center 50+, and other General Fund programs. Salem’s City Council will next pick up the FY26 Budget on June 9, 2025.
“This isn’t a fair budget—but it is impartial,” said Interim City Manager Krishna Namburi. “It reflects the hard truth of our financial reality and the difficult situation we are in. The choices we face are not about one service being more important than another—it’s a response to a financial crisis, shaped by community priorities, that demanded hard, imperfect tradeoffs. I am deeply saddened by the impact this proposal has on the dedicated staff whose jobs are affected and on the community members who are losing access to essential services they rely on. I’m grateful to the Budget Committee for their thoughtful leadership, and to our community and staff for their resilience as we navigate this crisis together.”
The Budget Committee’s work began April 16, 2025 and continued through May 7, 2025. The Committee considered in-person testimony and in writing sharing how these services have positively impacted their lives and voicing concerns over the potential cuts. The Committee also held public hearings on Capital Improvement Fund and projects, and State Shared revenues discussed. At each meeting, the City provided responses to questions. All the Budget Committee’s materials, and the Proposed FY26 Budget, are available on the City’s website.
What Happens Next?
Salem City Council picks up the FY26 Budget on June 9, 2025. The proposed budget balances costs with available revenues. It does not account for the possibility of revenues from a proposed five-year local option levy. The City will also continue pursuing new revenue opportunities, identifying efficiencies and finding cost savings, including direct engagement with the State of Oregon to pursue funding support for public safety services to State facilities.
Local Option Levy. The local option levy will appear on Salem voters’ ballots for the special election taking place on May 20, 2025. When the outcome of the levy is known, if it passes, the Salem Budget Committee will reconvene to consider amendments to the FY26 Budget.
If the measure passes, the property tax revenue generated would be placed in a dedicated and protected account overseen by a committee to ensure that the revenue is used only for purposes outlined in the measure, including:
- Restoring and continuing Salem Public Library services.
- Operation of Center 50+ classes, activities, outreach services, and support services.
- Recreation programming, including youth day camps, youth sports, and community events.
- Management and maintenance of more than 90 parks, including facilities, playgrounds, splash fountains, sports fields, trails, and more.
# # #
