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Deschutes County officials say state revenue forecast and federal Medicaid changes threaten program funding

3340490 · May 16, 2025
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Summary

County leaders and state legislators on a Deschutes County conference call said the latest state revenue forecast is lower than expected and warned potential federal changes to Medicaid eligibility could reduce incoming federal dollars, squeezing funding for county services such as community corrections, behavioral health and wildfire response.

The Deschutes County Board of Commissioners and invited state legislators discussed the state revenue forecast and its likely effects on county services during a Tuesday conference call.

County staff described a forecast downgrade and federal Medicaid policy proposals that could reduce funds arriving in Oregon. "The revenue forecast is down compared to the last forecast. The official number that they quoted was $755,000,000," a county staff member summarized, adding that roughly $250 million of that figure had been pre-allocated for wildfires and that, in practical terms, the forecast shows about a $500 million decline relative to prior expectations.

Why it matters: County leaders said reduced state revenue and possible federal changes to Medicaid could force the state to re-prioritize spending and leave less…

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