Next year, the City's projected revenues will not be enough to pay for the services we provide today. 

The Problem

Our community is growing, but City services are not able to keep up. To keep pace, we need a more balanced way to pay for services in the City's General Fund.

The City's General Fund supports services like police, fire, public safety, parks and recreation, library, land use planning and zoning, enforcement of codes or rules to maintain neighborhood livability, social services that help those in need, municipal court, and other services that provide a general citywide benefit.

As more people live in our community, the demand for and cost of services increase each year, but the revenue to provide those services grows at a slower rate.

As a result, by June 30, 2026, the cost for these services will be more than $15 million greater than the revenues collected in the General Fund. The working capital, or savings account, needed to cover payroll from July 1 to October each year for these essential services, will be gone. Solving this General Fund deficit, or structural imbalance, is critical to maintaining City services and staffing levels. Closing this immediate funding gap will not increase community services or add staffing.

Our Sheltering Programs

More funding will be needed to continue Salem's sheltering programs, continue existing service levels as the population continues to grow, and to add services and programs to meet community need. The City funded sheltering programs with one-time revenue including State and Federal funds. To continue Salem's micro-shelter village communities and Salem Outreach Services Team, at least an additional $9.6 million is needed annually when existing funding will be exhausted as of June 30, 2024. By June 30, 2025, funding for Salem's Navigation Center is exhausted.