SPRINGFIELD – The City of Springfield is grappling with financial issues, as a recent report uncovers a long-term structural imbalance and a short-term budget deficit within the General Fund.
This imbalance has been largely attributed to decades of limited property tax growth due to state measures, while the current deficit reflects the impacts of inflation and broader economic pressures across various levels of government, according to the report published in this month by ECO Northwest, an independent economics and policy consulting firm.
According to the Springfield Mayor’s Fiscal Stability Task Force, which presented its findings to the Springfield City Council on Monday night, reductions are necessary to balance the Fiscal Year 2025-26 budget.
According to the Task Force, a citizen-led effort that develops community-centered recommendations to address Springfield’s long-term financial challenges, without these measures, Springfield could struggle to maintain existing service levels. Comparisons with other cities show that Springfield’s operations are already lean, according to the report, with a constrained tax base further complicating the issue.
To address these challenges, the Task Force made recommendations, including various cost reductions, revenue options, and economic development strategies, and also identified deferred maintenance of capital assets as a significant long-term challenge.
The Task Force established a target of $4.5 million – close to the projected General Fund shortfall for FY 2027–28 – to explore cost reduction and revenue options that would help mitigate the near-term budget deficit.
After reviewing 56 potential solutions, the Task Force reached consensus on nine key recommendations to address the City’s fiscal challenges.
Among its recommendations, the Task Force proposes to reduce the library budget by $500,000, implement a shared employee and employer payroll tax with guardrails to generate $2,300,000, and increase current levies to cover costs outlined in the ballot for Police and Fire and life Safety levies, which is expected to generate $1,300,000.
In response to the proposed budget cuts, representatives from the Friends of the Springfield Library and Springfield History Museum emphasized the importance of library services. They stated, “We recognize the difficult decisions the mayor and city council face as they work to balance the budget and meet the needs of all residents. However, we urge Springfield residents to speak up and let the City Council know that the loss of library services that would result from this proposed budget cut is too much. A strong public library and museum are essential to the educational, cultural, and economic well-being of our city.”
The Friends of the Library express concerns that the budget decrease could lead to diminished library services, halted book budgets, reduced operating hours, and the elimination of three staff positions.
READ THE REPORT HERE:
Springfield-Taskforce-Report_finalAdditionally, other recommendations aimed at improving health and safety, “which may or may not have a fiscal impact,” include implementing traffic cameras, with any net revenue directed toward public safety needs, and decreasing police overtime.
To address the city’s long-term structural challenges, the Task Force also recommends reviewing City-owned properties for sale or development, examining the development of the Gateway employment area, developing a business retention and expansion strategy, and supporting state-level efforts to modernize Oregon’s local revenue system, including reforms to Measures 5 and 50.
“Springfield is a community where people genuinely care for one another,” said City Manager Nancy Newton. “Throughout this process, my belief has remained the same: when given the facts, our community will come together to make thoughtful decisions. The collaboration we’ve seen is inspiring and gives me great confidence in our shared future.”
