Bend, OR – Oregon Democrats have unveiled a proposal for more than $425 million in new spending, aimed at addressing rising social services caseloads, preparing for future wildfires, and tackling a host of other urgent state needs. The proposed funding is part of a larger package of bills introduced during the early days of the legislative session, designed to “rebalance” the state’s budget before it expires on June 30.

The bulk of the new spending would be allocated to the Oregon Health Authority (OHA) and the Department of Human Services (DHS), both of which have reported significantly higher-than-expected demand for services since the current two-year budget was set.

The OHA would receive nearly $200 million to address growing healthcare costs under the Oregon Health Plan, which serves low-income residents, and the Healthier Oregon Program, designed to support undocumented immigrants. This funding aims to ensure that the agency can meet the increased demand for services through the end of the fiscal year.

Similarly, the DHS has requested an additional $161 million to meet rising demand among the aging population and individuals with intellectual disabilities. The department says the funding is necessary to maintain service levels until the next biennial budget takes effect.

Together, these two agencies represent the largest share of the proposed spending increase, which is expected to draw in $1.2 billion in federal matching funds, significantly expanding the state’s ability to address pressing healthcare and social service needs.

Beyond healthcare, the proposed budget rebalancing includes significant investments in wildfire preparedness. The state’s Department of State Fire Marshal would receive $6 million to help prepare for the 2025 wildfire season. This allocation follows the $218 million approved by lawmakers in December to address wildfire costs for the upcoming 2024 season.

Additionally, lawmakers are proposing $10 million to ensure that the Department of Human Services can avoid housing foster children in hotels, a practice that had been temporarily halted after previously allocated funds were diverted to cover wildfire-related expenses last year.

In addition to these major allocations, several other areas would see funding increases, including:

• $50,000 for a third-party management review of the Oregon Department of Transportation, requested by state Sen. Bruce Starr, R-Dundee.
• $7.5 million to compensate individuals wrongfully convicted and imprisoned, a program that has faced criticism for delays in payouts.
• $5 million for the Department of Emergency Management to build a stockpile of emergency supplies for future crises.
• $5 million to support container shipping operations at the Port of Portland’s Terminal 6, part of a broader effort to boost the state’s transportation infrastructure.
• $4 million for language interpreters in Oregon’s courtrooms, aimed at improving access to justice for non-English speakers.
• $250,000 for water testing in Crook County, addressing concerns over potential contamination of local water supplies.

If all proposals are approved, the state would reduce the remaining funds available in the 2023-2025 budget by $425.6 million.

Oregon’s top budget writers, State Rep. Tawna Sanchez, D-Portland, and State Sen. Kate Lieber, D-Portland, indicated that much of the new spending was already accounted for in a recent revenue forecast, which projected an additional $350 million in revenue for the state. This extra funding provides lawmakers with the flexibility to address these immediate needs while still planning for the next two-year budget cycle.

As the legislative session progresses, Oregon residents and lawmakers alike will be closely watching how these proposals are debated and whether they will be passed in their current form. The state’s growing needs, particularly in healthcare and social services, reflect the broader challenges faced by many states across the country, with rising demand for services outpacing available funding.

The proposal reflects a concerted effort to address urgent issues while laying the groundwork for long-term stability in Oregon’s budget. However, as with all budget proposals, it will require approval from the legislature before becoming a reality.