Oregon Youth Authority asks Legislature to fund $551 million budget, prioritize McLaren clinic, JAGES modernization and facilities

The Oregon Youth Authority told the Legislature's Public Safety Committee on March 26 that it is seeking to maintain current service levels in the 2025–27 budget and is asking lawmakers to fund priority projects including completion of the McLaren Youth Correctional Facility infirmary and pharmacy, modernization of the statewide juvenile justice database known as JAGES, and implementation support for a Medicaid 1115 waiver.

"Today we continue with House Bill 5041, the primary budget bill for the Oregon Youth Authority," interim assistant director for business services Katie Hudson told the committee as she opened the agency's budget presentation.

The request matters because most OYA spending supports direct care for youth and because the agency is managing rising costs tied to youth mental and medical needs, staffing shortages and deferred facility maintenance. Hudson said the agency's legislatively approved 2023–25 budget was about $500 million, with roughly $400 million in general fund, $46 million in federal funds and $35 million in other funds. The agency said the governor's recommended budget for the next biennium is about $551 million and estimated it would need roughly $517 million to maintain current service levels without cutting core operations.

Agency officials said roughly 72% of current spending goes directly to youth services. Hudson told the committee that almost 87% of the agency's cost‑per‑day for a youth covers core…