Less than a year ago, Salem’s financial forecast showed the city headed for a $17.7 million shortfall in its General Fund for the 2026 fiscal year. City staff warned that the gap would force tough decisions on services and staffing.
City leaders said the gap has been closed. Instead of a deficit, the current forecast shows a $3.9 million increase to reserves. And it happened without the payroll tax that dominated political debate last year.
The change comes from a mix of new revenue, voter support, and internal cost controls…