Salem Interim City Manager Krishna Namburi Presents Plan to Address $13.8M Budget Shortfall to City Council

The interim City Manager of Salem, Krishna Namburi has outlined a fiscal plan that was advanced to the Salem City Council last Wednesday, aiming to tackle a significant budget shortfall. The Fiscal Year 2026 (FY26) Budget, which commences on July 1, is set to address a $13.8 million funding gap impacting vital public services including the Salem Public Library, parks, and recreational offerings. In a statement obtained by City of Salem’s news release, Namburi conveyed, “This isn’t a fair budget—but it is impartial.” He further added, “It reflects the hard truth of our financial reality and the difficult situation we are in.”

In April and May, the Budget Committee dedicated their time, poring over testimony and weighing community feedback on potential service cuts. The budget preparation process also included public hearings on the Capital Improvement Fund and potential revenue allocations. Despite the meticulous approach, the proposed budget still necessitates difficult choices, not accounting for possible funding from a five-year local option levy which voters will decide on in a special election on May 20, 2025.

If Salem’s residents back the local option levy, the revenue stream would be funneled into specific community resources. According to the City of Salem’s official communication, the funds would ensure the continuation of library services, operation of the Center 50+, support for recreational programming, and maintenance for the city’s expansive park system. A dedicated committee would supervise the correct application of these monies keeping with the mandates of the levy…

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