Governor's budget outlines $2.3B bond capacity for Oregon's capital projects

The Joint Committee on Ways and Means Subcommittee on Capital Construction convened on March 21, 2025, to discuss critical aspects of Oregon's budget and capital projects. A significant focus of the meeting was the state's debt capacity utilization and the recommended projects associated with various bond programs.

During the presentation, officials outlined the governor's budget, which proposed a general fund general obligation bond capacity of $2.3 billion and a lottery revenue bond capacity of $571 million. The budget allocates $2.2 billion in general fund-supported bonds, leaving approximately $85 million in unused capacity. This unused amount could be directed towards other legislative priorities or reserved for future allocations.

The meeting also highlighted a downward revision in the state debt capacity advisory commission's report, which was released in January 2025. The general obligation bond capacity was adjusted to $2.22 billion, resulting in only $11 million remaining for new projects. Additionally, the lottery revenue bond capacity was reduced to $5.64 million, necessitating further reconciliation with the governor's budget.

The discussions emphasized the importance of these financial decisions in shaping Oregon's infrastructure and project funding. As the legislative session progresses, agencies will have opportunities to present specific projects, ensuring that the budget aligns with the state's priorities and needs.