Portland's budget crunch is prompting city officials to

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The money would flow into health reimbursement accounts rather than as direct payments to employees.

The proposal heads to the Portland City Council on Wednesday for immediate approval.

Dana Haynes, spokesman for Mayor Charlie Hales, said Portland is offering the incentive as a way to cut costs and potentially avoid layoffs. Bureaus will decide how many employees are eligible, he said, and no number has been established.

According to the proposal, about one-third of city employees are retirement-eligible and a recent city survey found that 53 percent of respondents said they couldn't afford to retire because of medical costs until Medicare would kick in.

"If folks wanted to take this, it sure as heck would be better than layoffs," he said.

The Portland Development Commission, the city's urban renewal agency, is also offering early retirement incentives --

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-- Brad Schmidt