Deschutes County officials hear end-of-session legislative update as budget uncertainty grows

Doug Riggs, speaking on behalf of Deschutes County, told county commissioners on June 6 that the Oregon Legislature is in the final weeks of its session and that multiple high-profile budget and policy items remain unsettled.

“There's a dash-10 amendment on Senate Bill 1153 that is posted on OLIS,” Riggs said, describing an amendment that would add a fiscal note and exempt municipal entities while leaving irrigators, farmers and other private water users subject to new procedures. Riggs said the amendment carries a roughly $500,000 fiscal note and would send the bill to the Ways and Means Committee.

The update came during a standing legislative briefing. Commissioners asked for clarity on bills that could affect county services and local funding streams, including the transportation package, community corrections funding, the transient lodging tax and sheltering funds.

Why it matters: county staff said several budget decisions could change county operations or local providers’ ability to deliver services. Riggs noted that reductions to community corrections and to workforce and shelter programs have been proposed in Ways and Means and that some stakeholders are pushing to restore funding in a late-session "Christmas tree" bill or via special-purpose appropriations overseen by the Emergency Board.

Key points from the briefing

- Water transfers (Senate Bill 1153): Riggs said the Dash-10 amendment would exempt municipal entities because they already meet public-notice and environmental standards, but private irrigators and property owners in basins would still be covered. He also said the amendment attaches about $500,000 in new costs, which could complicate passage.

- Transportation package and ODOT accountability: Commissioners and staff focused on a still-unreleased transportation proposal described as balancing maintenance and operations with large project-delivery accountability reforms. Chris Doherty said, "the crux of this bill should be the maintenance and operations." Riggs and others described pressure from legislators for timelines and internal ODOT reforms after an accountability study with recommendations to streamline project decision-making.

- Budget pressure and rainy-day funds: Riggs described a May revenue forecast and federal uncertainty that have produced concern among legislative leaders. He said there is roughly $544,000,000 being discussed in relation to rainy-day or reserve funds and that some advocates want portions used to shore up programs line community corrections and early learning rather than locked away.

- Workforce and program cuts: Riggs and others raised the legislature's proposed elimination of the Prosperity 10,000 program and cuts to local workforce funding. Riggs said the program produced tax revenue and broader economic gains; he gave the amounts as a $35 million investment that generated about $22 million in income tax revenue and a $219 million net gain in his description of prior program outcomes.

- Transient lodging tax (House Bill 3962): County staff member Robert reported that House Revenue Committee amendments (dash-8, dash-10 and dash-11) remain under discussion. Dash-8 narrowed eligible uses to "critical infrastructure;" dash-10 expanded to "community infrastructure" (recreation, restrooms); and dash-11 would reconfigure a proposed distribution split so counties could use a larger share for general government. Robert said the amendments also include a reporting requirement for counties beginning in 2027.

- Sheltering and homelessness funding (House Bill 3466): Commissioners noted testimony from local leaders that failure to pass sheltering funds could force closures of local shelters. Riggs said sheltering is a near-term funding concern if Ways and Means final decisions do not restore support.

- Vaping bill (Senate Bill 702): Riggs said the bill was scheduled for a Finance and Revenue work session and that public health groups broadly support it, but that multiple amendments may have altered the bill's original intent.

What commissioners asked and directed

Commissioners repeatedly pressed for clear accountability measures tied to new taxes or revenue streams. One commissioner asked whether a proposed 40¢ gas tax increase would disproportionately affect low-income residents; Riggs replied that earlier proposals start at a lower rate and include other user fees to spread costs across vehicle types, but said final numbers were not yet available. Several commissioners urged county staff to be ready to support a transportation package if it retains strong maintenance-and-operations language.

No formal motions or votes were taken during the briefing. The meeting was an informational update and did not adopt county positions on the individual bills.