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Lawmakers hear support for bill to cap local match on small-city grants
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Summary
Supporters told the House Committee on Commerce and Consumer Protection that Senate Bill 15 85 would lower local matching requirements (from about $1,000,000 to about $400,000) and make state capital grants more accessible to small Oregon cities; the Special Districts Association urged inclusion of districts and raised equity concerns. No committee vote was taken.
Chair Sosa convened the House Committee on Commerce and Consumer Protection on Feb. 24 for a public hearing on Senate Bill 15 85, a measure to cap local matching requirements for specified state grants to small cities.
Matt Keating, chief of staff to Senator James I. Manning Jr., testified on the senator’s behalf, saying the bill “essentially drops that matching grant from 1,000,000 to around $400,000, making it easier for these smaller cities to hobble together the necessary funds for these critically important infrastructure projects.” He told the committee the bill does not increase agency budgets, does not change grant evaluation processes, and does not guarantee funding.
Supporters from multiple small cities and the League of Oregon Cities described concrete effects. Lily Morgan, city manager of Gold Hill, said her city of about 1,330 residents (roughly 540 homes) spends a disproportionately large share of its park budget to meet matches: a cited 20% match represented roughly 40% of that budget and two recent matches together amounted to about 71% of the parks budget. Isis Thornton Saunders, speaking on behalf of the city of Central Point, said a recent state grant that required a 22% local match would have been capped at 12% under the bill and that change would have saved Central Point about $41,000 on that project. Peter Bridal, city manager of Cornelius, and Sean Tate of Lebanon described similar constraints on cities with low assessed values and limited revenue options.
The bill targets specific state grant programs, including ODOT programs (Safe Routes to School, Connect Oregon, Oregon Community Paths), Business Oregon’s Special Public Works Fund, the Oregon Parks and Recreation Department Local Government Grant Program, and certain Water Resources Department planning and water supply account grants. Keating and others said the bill deliberately removes references to federal funds and that feedback from the Office of Emergency Management informed that decision.
Not all testimony was uniformly supportive. Mark Landauer, representing the Special Districts Association of Oregon, said his association (which he said represents roughly 950 districts statewide) agreed with the bill’s intent but opposed the current draft because special districts are not included. Landauer explained many districts operate on volunteer boards and limited statutory revenue authorities, which makes high match requirements particularly burdensome. In response, Keating said Senator Manning intends to seek inclusion for special districts in the 2027 long session and characterized the current measure as an opportunity to show the approach works.
The hearing closed without a committee vote. Chair Sosa said the committee’s business for the day was concluded and adjourned the meeting.
