Mayor Hales Warns Council on Dangers of Not Approving Tax Increase on Business

One day after the Portland City Council effectively put the kibosh on a proposal from Mayor Charlie Hales to raise the tax on business income, the mayor released a statement painting a dire picture of what would happen if the city doesn't find additional sources of revenue.

"Portland is a growing city that’s facing real challenges: youth violence at record highs; systemic hurdles to access and opportunity; a housing affordability crisis; thousands of people sleeping on our streets," Hales said Wednesday.

"To address these challenges, we need more revenue. We need to be pragmatic and responsible leaders, and take advantage of our prosperity to prepare ourselves for the future."

The mayor says it doesn't have to be an increase in the business tax.

"I am open to other options my colleagues propose, such as the planned Construction Excise Tax," he says.

If though, they do nothing, he warns of consequences that would effect quality of life in the city in several different ways.

Notably, he talks about the effect it could have on the homeless situation in Portland.

"The One Point of Contact system ends; people will have to go back to contacting individual bureaus jurisdictions about homelessness issues. All support for camps stops," he warns.

"That means 200 people who are sleeping off the streets and in organized camping would no longer have toilets, dumpsters, storage, required Code of Conduct agreements, or management. Dumpsters, needle containers, and portable toilets that are helping to keep our streets clean will be removed."

He also says new camps for women won't be established, and other programs such as mobile shower pilot program; development of new shelters and campsites; trespass signage coordination; neighborhood outreach on homelessness issues, won't happen.