Salem, OR – The City of Salem has released its Proposed Fiscal Year (FY) 2026 Budget, addressing a $13.8 million gap in the General Fund through a combination of staffing reductions, one-time revenues, and cost-saving measures. The Interim City Manager’s proposed budget will be reviewed by the City of Salem’s Budget Committee beginning on April 16, 2025.
The City’s $764.2 million proposed budget for 2026 covers the period from July 1, 2025, through June 30, 2026, and includes estimates of revenue and costs of services and capital projects. The Proposed FY 2026 Budget shows significant position reductions impacting both staffing and service levels, including cuts to parks maintenance, Center 50+ outreach programs, recreation programs, and operating hours at the Salem Public Library. Reductions in positions that support Community Planning and Development, Community Services, and City business operations—such as Finance, Legal and Enterprise Services – are also included.
“As Interim City Manager, my top priority is to work toward long-term financial stability for the City while maintaining essential services for the Salem community,” said Interim City Manager Krishna Namburi. “Through temporary cost-saving measures and one-time revenues, we were able to preserve 41 FTE positions and some of the essential services they support. However, despite our best efforts, we are unable to maintain the services the community expects and deserves. Our budget constraints will result in the loss of 51.4 staff positions. This is a significant loss for this organization and our community, and I share in the sadness of seeing these impacts on our colleagues and our community. Our thoughts are with the employees directly impacted, and we are committed to supporting them through this difficult transition.”…