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Eugene IGR committee hears state funding uncertainty for housing, behavioral health and local projects
Summary
City staff told the Eugene intergovernmental relations committee that state policy changes are likely to pass but the size and flow of funding for housing, Clear Lake Road and behavioral-health projects remain uncertain; committee agreed to fold its July meeting into a full-council work session.
Councilor Randy Groves, Ward 8 and chair of the Eugene intergovernmental relations (IGR) committee, on Wednesday asked for a legislative update; city staff member Ethan told the committee the policy framework for a statewide housing response is likely to pass but the funding level is uncertain.
Ethan said the governor’s recommended budget included $217,000,000 for the housing initiative but that the May revenue forecast has reduced expectations. “If it’s below $200 million, I wouldn’t be surprised. If it’s below $150 million, I’d be surprised,” Ethan said during the committee’s legislative update, characterizing the final allocation as a high likelihood to change.
The committee heard that cities including Eugene have pressed the Legislature to treat $217 million as a floor and that local governments are prepared to contribute local matching funds. Ethan said local governments have discussed contributing roughly $150 million in combined local funds to support state allocations, and that the new policy framework could change how funds flow — shifting some program administration toward Lane County for statutorily defined responsibilities.
Ethan also briefed the committee on several specific priorities and bills. The Clear Lake Road infrastructure request has a legislative sponsor and a local delegation member treating it as a “take-home” priority, but a federal earmark request for the same project was not included by a member of Congress because staff judged the requested floor ($1.5 million) not sufficiently scalable for federal priorities. The committee discussed the Port of Coos Bay and federal earmark timelines; Ethan said available earmark amounts often range from about $1 million to $3 million per member and that larger “mega grant” requests may take longer to materialize.
On behavioral health, Ethan said reauthorization funding for the health stabilization center is a delegation priority but that securing the full $15 million request is uncertain. He also reported that House Bill 2480, a behavioral-health omnibus, contains proposed language that would in some cases preempt local land-use authority for siting residential treatment and stabilization centers. “It would be the former,” Ethan said when asked whether the draft language preempts local zoning; he added the city attorney and land-use team are reviewing draft amendments to identify implementation concerns.
Ethan said Senate Bill 473, which would increase protections related to threats against public officials, passed the Senate unanimously and has been the subject of further negotiation in House Judiciary, where some members questioned whether existing harassment, stalking and intimidation laws might suffice. He described ongoing talks between the House and Senate judiciary chairs and the city’s lobby team to resolve differences before floor action.
The committee also heard brief updates on a range of other measures (status not yet final): Senate Bill 6 (shot-clock proposals for municipal building-permit review likely stalled), Senate Bill 916 (third reading scheduled), and several Ways and Means items including ground emergency medical transportation funding and infrastructure packages that remain dependent on the budget bill. Ethan said the budget bill is expected to be released in roughly a week to 10 days and that “sine die” is likely around June 19–20 given procedural timing and absence rules.
Committee business: members moved and approved the meeting agenda and minutes from the May 7, 2025 meeting without recorded opposition. The IGR members agreed not to hold a separate July IGR meeting and instead to include an end-of-session legislative update in a council-level work session before the summer break, with staff to confirm the schedule by email.
Smaller updates included a note that airport federal items will be discussed at the full-council federal-priority work session scheduled for June 9, and that a county-led land-use/energy recovery facility matter in Goshen is being handled primarily by county planning staff and the county’s legislative requests. The meeting adjourned after roughly 46 minutes.
