Recent layoffs at significant Oregon employers such as Intel, Nike, and Providence have raised serious concerns about the state’s economic health. With downtown office buildings sitting vacant and local governments, including Multnomah County and the city of Portland, facing budget shortfalls, a systemic issue has surfaced that threatens the state’s ability to fund essential public services.
The political landscape indicates that elected officials are often judged by visible results — safer streets, fewer homeless encampments, and quicker emergency response times. These outcomes, however, depend on a robust and growing economy that can adequately finance such public services. Unfortunately, economic development, a crucial driver of this growth, is frequently overlooked and underfunded within public budgets.
Economic development encompasses the creation of quality jobs, the attraction of private investment, and the expansion of the tax base — all of which are necessary to fuel economic progress and support the services residents rely on. Failing to prioritize economic development in the name of preserving public services ultimately results in long-term failure.
Take Multnomah County as an example. In the past five years, the county has received nearly $30 million in dedicated lottery funds intended for economic growth. However, a significant portion of these funds has been diverted towards debt service and construction-related expenses for new county buildings and the Sellwood Bridge. These expenditures, though labeled as economic development, do not correlate with actual economic growth.
Furthermore, the debate surrounding budget cuts for Portland’s economic development agency reflects a growing skepticism regarding the very initiatives that are vital for nurturing the tax base. This attitude is setting a troubling precedent for the state’s economic future.
At the state level, the Oregon Business Development Department plays a critical role in assisting businesses with job retention, creation, trade promotion, and innovation. Yet, while its budget of approximately $1.8 billion for the 2025-27 period appears substantial, much of it is earmarked for infrastructure projects and bond repayments. These allocations may pave the way for future growth, but they do not directly stimulate private-sector expansion in the immediate term.
This situation creates a vicious cycle affecting all levels of government. As revenues decline, leaders are forced to cut the very services that make the region attractive for investment and livability. If this trend continues without significant changes, the deterioration will only intensify. It’s not merely a matter of managing decline; rather, it’s about hastening it.
Economic development should not be viewed as merely a supplementary endeavor; it is the cornerstone of sustainable public services. Without a robust growth framework, budgetary balancing will fail to yield the safe streets, quality education, clean parks, and swift emergency response that Oregonians desire.
The analogy is straightforward: relying on essential services without fostering economic growth is akin to expecting a phone to remain charged without plugging it in. Adjusting usage allows for temporary solutions, but ultimately, the device will power down.
An economist highlighted some of the looming threats that could lead Portland into a so-called ‘doom loop’ and pointed out the challenges of escaping this cycle. The message is unequivocal: Oregon requires a financial recharge, underpinned by meaningful economic development.
Revitalizing economic growth offers a clear pathway towards improved prospects: more jobs, increased revenue, a reinvigorated sense of community confidence, and tangible proof that progress is possible. Leadership should focus on proactive strategies that emphasize growth as an essential goal.
True economic development transcends infrastructure investments; it involves reigniting the private sector’s engine of growth. This entails addressing the challenges posed by vacant office spaces and a shrinking tax base through significant investments, including incentives for attracting major employers and programs that support local business expansion. Additionally, strategic campaigns must be launched to position Portland as a prime destination for growth.
Oregonians are not demanding miracles; however, it is crucial to elevate expectations of one another and our elected leaders. Recognizing economic growth as a fundamental priority is essential; without this realization, leaders will continue to focus on crisis management instead of laying the groundwork for future prosperity.
Business leaders cannot shoulder this responsibility alone. Every individual who benefits from public funding has a vested interest in fostering a robust economy and upholding policies that drive growth. Economic development should not be perceived as a compromise against vital services; rather, it is the only sustainable pathway to ensure their viability.
By consistently reiterating this message in budget hearings, opinion pieces, council gatherings, and public discussions, the political narrative can shift. Growth should be recognized not as a specialized interest but as a shared public benefit vital for the community’s well-being.
image source from：oregonlive
