Deschutes County officials say end of Oregon legislative session could leave transportation, wildfire and behavioral-health requests unfunded

Deschutes County officials warned Friday that the Oregon Legislature’s accelerating end-of-session pace could leave several county priorities underfunded, including transportation projects, wildfire response and a proposed youth psychiatric facility for Central Oregon.

On a county legislative update call, Doug Riggs, speaking on behalf of Deschutes County, said the Legislature has signaled that “sine die is imminent,” allowing committees to post hearings with as little as an hour’s notice and making rapid action likely in coming days. “It is beginning to feel like the end of the session,” Riggs said.

The county’s update came as commissioners and staff reviewed several issues that remain unsettled in Salem. Commissioner Chang said she was “just waiting to see where the chips land on transportation and wildfire funding.” Another participant, Kevin, reported he had been tracking two bills he was following and that “Senate Bill 85 did pass,” while other measures remain in limbo.

Why it matters: Deschutes County relies heavily on state transportation funding and has prioritized a Central Oregon youth psychiatric residential facility in its budget asks. Riggs said much of the session’s work is now concentrated in Ways and Means and capital construction subcommittees, and cautioned that capital requests are likely to be reduced: “If you ask for 10,000,000, maybe you'll get 5,” he said.

Budget and timing. Riggs said the Legislature’s budget choices are being shaped by two large reserves: the state’s rainy day fund and the tax “kicker.” He reported the rainy day fund currently contains roughly $5.2 billion; the legislature faces a revenue forecast that is about $500 million lower than projected in March and an ending balance in co-chairs’ plans of about $544 million. The kicker — the mechanism that returns surplus taxes to taxpayers — is roughly $1.6 billion, Riggs said. Those numbers are driving debate over whether to spend now or preserve reserves.

Capital construction and the youth psychiatric facility. Commissioners asked whether funding for a proposed Central Oregon youth psychiatric residential facility would be handled through the capital construction process. Riggs said such projects typically are considered by the capital construction subcommittee and funded with lottery-backed bonds; in the current forecast the initial lottery allocation of about $550 million was revised down to roughly $501–502 million, a drop Riggs described as roughly a 10% reduction. He said that shift means not every project will receive its full requested award.

Transportation and ODOT. Riggs flagged a recent audit of the Oregon Department of Transportation that included nine recommendations intended to speed project delivery, including removing steps that lengthen contracting and giving project managers more authority. He and commissioners discussed an unresolved transportation package that some lawmakers may not finish before adjournment; Riggs said he did not expect a finished transportation bill in the immediate three-week window but that a special session later in the year was possible.

Wildfire funding and policy options. Wildfire funding discussions remain tied to larger budget choices. Riggs said Senate Bill 75 and other wildfire measures are effectively being negotiated as part of broader funding talks and that some lawmakers have proposed larger, more unusual funding options — including a one-time holdback of some kicker dollars to create a wildfire trust that could generate ongoing revenue. He also noted renewed discussion of cap-and-trade as a possible revenue source raised by some Republicans as a way to fund transportation and wildfire programs.

Behavioral health and public safety bills. Riggs said a package of behavioral-health and community corrections bills — including an extensive “aid and assist” draft and measures intended to streamline criminal-justice processes — remain pending and are tied to the Legislature’s available resources in Ways and Means.

County engagement. Riggs urged continued county engagement in Salem despite the thinning presence of advocates and hearings, and thanked county staff for producing a one-sheet of county priorities that members found useful when meeting with legislators. Holly Harris added that Central Oregon advocates — including pediatricians and St. Charles Hospital — are actively supporting the youth psychiatric facility request.

What’s next. County leaders expect decisions could happen quickly and with limited public notice as committees post hearings in the final days. For now, many items remain under negotiation and may be decided only at the last minute or in a later special session.