Wildfire funding work group presents six funding concepts, endorses $280 million floor

A joint report from the Oregon Department of Forestry and the Department of State Fire Marshal recommended a multi‑part approach to sustainably fund wildfire readiness, mitigation and large‑fire costs and identified a $280 million “floor” aligned with the governor’s budget as a foundational funding level.

Doug Graff, wildfire and military advisor in the governor’s office, Travis Madema, Chief Deputy for the Department of State Fire Marshal, and Kyle Williams, Deputy Director of Fire Operations at the Oregon Department of Forestry, presented the report and the work group’s findings to the Natural Resources Subcommittee. Graff said the work group — convened under a 2024 budget note tied to Senate Bill 5701 — met through a challenging fire season and included 36 members representing tribal nations, fire service, landowners, counties, cities, conservation groups, utilities, insurance and public health interests.

"We all know by every measure, fire seasons continue to grow more complex," Graff told the subcommittee, citing 2024 totals of about 1,900,000 acres burned and roughly $350,000,000 in suppression costs reported to the group. He thanked the legislature for convening the work group and the 36 members who took part.

Work group members aligned on principles emphasizing durability and sustainability of funding, linkage between mitigation and response, shared responsibilities across Oregonians, and consideration of equity and affordability for payers. The group focused on net large‑fire costs (after federal reimbursements) and concluded a comprehensive package of funding sources would be needed.

Kyle Williams outlined six funding concepts that rose to the top of the work group’s analysis, with Legislative Revenue Office estimates provided as illustrative ranges and caveats: establishing an endowment using a one‑time kicker transfer (an estimated ~$144 million per biennium if a hypothetical $1.8 billion kicker were invested at 4%); adding a nonrefundable portion to the bottle bill deposit (roughly $40 million per biennium per additional penny, up to an estimated ~$200 million at 5¢); dedicating revenue from the insurance retaliatory tax (roughly $140 million per biennium currently directed to the general fund); dedicating an additional 0.5% of the previous biennium’s ending balance (estimated ~$164 million in the snapshot); a one‑time rainy‑day fund transfer (examples cited about $323 million); and constitutionally dedicating a portion of lottery revenue (estimated 1% ≈ $19 million; 5% ≈ $97 million). Williams emphasized the figures were snapshots and starting points for legislative deliberation.

Madema and Williams stressed the group’s emphasis on connecting readiness, prevention and large‑fire costs and on evaluating affordability for different payer groups. The work group, which met five times in Bend, Pendleton and Salem, used Oregon Consensus as a facilitator and referred to itself informally as the "Fire 35."

Chief Financial Office staff recommended the subcommittee acknowledge receipt of the report, and the Legislative Fiscal Office also recommended acknowledging receipt. The subcommittee moved to acknowledge the report; one member objected (saying more discussion is needed), but the motion passed by voice vote and the report was acknowledged.

Next steps noted in the presentation included continued work with the legislature and agencies to refine options and estimate fiscal impacts, a smaller group to address intersections between forest land protection districts and structural fire protection, and additional work sessions planned.

The report provides a menu of concepts for lawmakers to consider, with caveats about implementation barriers, constitutional or statutory constraints, and the need to balance affordability and equity for Oregonians.