Like many communities across Oregon, Springfield is confronting a near-term general fund deficit alongside longer-term fiscal pressures. These challenges are driven by structural limitations in property tax revenue growth and broader economic headwinds.
Earlier this year, Mayor Van Gordon convened a Fiscal Stability Task Force comprised of community-minded leaders to evaluate potential solutions and develop proactive, balanced strategies. Over the summer, the Mayor and City leadership are actively engaging the community to share the ideas under consideration and invite input on solutions that preserve essential services and support Springfield’s long-term economic vitality.
On July 22, the Springfield Area Chamber of Commerce hosted a Chamber Roundtable program featuring Mayor Sean VanGordon. Mayor VanGordon was joined by consultant Anne Marie Levis of Funk/Levis & Associates, the firm that facilitated the City’s Fiscal Stability Task Force. The Task Force was charged with finding practical ways to address Springfield’s projected budget shortfall, an estimated $4.5 million by fiscal year 2027–28. Their work focused on short-term cost savings and revenue options, while also identifying long-term strategies like economic development and legislative reform to help fix the City’s structural imbalance.
One of the most discussed recommendations is a potential payroll tax, identified as a more equitable option to help close the city’s funding gap compared to a new bond or property tax levy. Of the nearly 27,000 jobs in Springfield, about 75% are held by commuters who live outside city limits. While these individuals benefit from city services, they do not currently contribute to the local tax base. A payroll tax would extend the responsibility for funding those services more broadly across the workforce. As a fiscal tool, it targets income earners rather than property owners, making it less burdensome for fixed-income seniors and helping to reduce additional strain on residential and small business property owners, who already bear much of the local tax load…