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County lobbyist warns of 2026 short session budget squeeze, potential Medicaid cuts
Summary
Doug Riggs, Deschutes County lobbyist, told commissioners the 2026 Oregon short session (Feb. 2–Mar. 9) will be focused on budget adjustments amid weaker revenue forecasts and possible federal Medicaid policy changes that could cost the state roughly $1.2 billion. The county will track proposals and interim hearings in January.
Doug Riggs, the county’s legislative liaison, briefed the Deschutes County Board of Commissioners on probable themes for Oregon’s 2026 short session and the fiscal pressures state leaders face.
Riggs said the short session (Feb. 2–Mar. 9, 2026) will be brief and largely budget‑focused, noting an early fall forecast that projected a roughly $358 million revenue shortfall was since moderated to about $63 million in a November update. He warned there remains significant downside risk and that a final revenue forecast will be released just before the session.
“Lower revenues mean higher cuts,” Riggs told commissioners, framing the short session as one of difficult trade‑offs for the Ways and Means Committee. He also flagged potential federal actions tied to the Healthier Oregon Program; he said other states face roughly $1.2 billion in related Medicaid reductions and that the program’s interaction with federal match rules creates uncertainty for state budgets.
Riggs described two common options for the legislature if a citizen transportation repeal measure qualifies for the ballot: the legislature could move the election date or adopt an alternative funding package; he said short‑session timing and partisan dynamics make a negotiated alternative uncertain. He urged local officials to track the transient lodging tax bill that would give communities opt‑in authority to allocate lodging revenue for local priorities.
Why it matters locally: Riggs said cuts at the state level could cascade into higher county mandatory costs and that community corrections, juvenile and youth services are particularly vulnerable to cuts that produce larger downstream expenses. He urged coordinated county advocacy and noted additional interim hearings in January before the short session.
What’s next: County staff will continue to monitor drafts, flag bill language that affects Deschutes County, and brief commissioners as draft bills and forecasts are finalized.
