Washington County identifies session wins and risks: $25M housing preservation, fairgrounds boost, transportation trade-offs

Washington County's government relations team briefed commissioners on March 17 about the 2026 Oregon legislative session, outlining a mix of wins for the county and continuing financial pressures for state agencies that could affect local projects.

Aaron Doyle and government relations staff emphasized that counties preserved most pass-through funds but the legislature closed a state budget gap through multiple mechanisms. "The first thing we want to start with here was ... SB1507," Pablo Fenuela told the board, explaining that parts of federal tax changes were decoupled, and that the session included agency spending reductions totaling roughly $128 million for the biennium. Staff said the reductions were largely accomplished by removing unfilled positions and cutting discretionary items.

Transportation emerged as a key trade-off. Carly Silva Gabrielson reported that ODOT faces an estimated $289 million shortfall; the legislature enacted SB1601 which leaves the 50-30-20 formula intact but redirects about $108 million from planned projects to core road maintenance, meaning fewer projects will move forward during the biennium. Gabrielson said the bill did not change the local bridge program or the fund exchange programs but acknowledged fewer new projects will proceed this cycle.

The session produced several items the county called wins: SB1601 removed the cap on county fair accounts and dedicates 1% of lottery revenue to counties for fairs effective July 1, 2027, which staff projected could boost county fair accounts substantially once final projections are available. Lawmakers also approved a $25 million bond allocation and a companion policy (HB4036) to create a HOLD (Housing Opportunity Longevity and Durability) fund to preserve affordable housing units; staff said the Oregon Community Services office will manage distribution details.

Pablo highlighted another practical win: HB4148 will change how transient lodging tax (TLT) revenue can be used, allowing counties to allocate up to 50% for general services rather than approximately 30% for non-tourism uses today. "If we were to apply the funding split in this bill to last year's TLT collections, that would have been like an extra $3.6 million that we would be allowed to use for general services," he said, noting the board will decide how to use any increased flexibility.

Staff also flagged items that failed or were deferred. A sustainable harvest bill with county interest did not pass amid fiscal concerns and environmental opposition; staff said the Department of Forestry told them it can manage about 185 million board feet of harvest with current staffing, but the issue remains unresolved. Other proposed economic development cost-recovery language for enterprise-zone administration did not survive the session, meaning counties will need a statewide solution in the future.

On immigration and civil rights-related legislation, staff summarized several enacted measures the county will track: HB4138 (limits on facial coverings by on-duty officers with identification requirements), SB1587 (privacy protections limiting disclosure of personally identifiable information to data brokers for immigration enforcement), and SB5204 (funding for universal representation for immigration legal services). Staff said county counsel and service managers will follow up on implementation and how to direct community members to new supports.

Staff promised a written memo with line-item details, effective dates, and implementation guidance ahead of return deadlines. Several commissioners asked staff to confirm effective dates for key bills; staff noted laws become effective on passage, 91 days after sine die, or January 1 and that they will provide a follow-up memo and a leadership briefing next week.