Oregon Governor Tina Kotek announced her proposed $39.3 billion budget for the 2025-2027 period on Monday. This budget focuses on housing, homelessness, mental health services, education, and transportation. It includes a $4.7 billion increase in spending compared to the current two-year budget.
Kotek’s plan, titled “Building on Progress,” prioritizes maintaining the state’s shelter system, building affordable housing, improving mental health care, and increasing funding for schools.
In 2023, Kotek proposed a $32.1 billion budget with similar goals but faced challenges when a walkout delayed progress. The legislature later approved $32.9 billion, or $34.56 billion when adding lottery funds.
Oregon’s six-month legislative session starts on January 21. Kotek’s proposed budget estimates that the state will have $39.4 billion in total resources, including revenue from lottery, corporate taxes, and other funds.
Key Proposals in Kotek’s Budget:
Transportation: Kotek has requested $1.75 billion in new funding for state highways, as Oregon faces a nearly $1.8 billion funding gap for transportation needs. State officials believe this is a crucial step to ensure a safe and reliable transportation system.
Education: The budget proposes $15.7 billion for education, including a $600 million increase to the state school fund. Kotek also wants to improve early literacy programs and provide additional funding for summer programs. She is asking for more than $835 million in total for children and youth-related initiatives.
Housing and Homelessness: Kotek’s administration has focused on addressing homelessness since she took office. Her new budget suggests investing over $1.4 billion to build affordable housing and increase housing supply.
This includes $780 million for affordable rental homes, $100.9 million for homeownership units, and $100 million for a new housing infrastructure program. She also requests $700 million to combat homelessness, with funding for shelter systems, rehousing, and prevention.
Behavioral Health: Kotek’s budget includes $330 million to improve mental health treatment capacity and workforce. She aims to add 336 new treatment beds and $50 million for training and education in behavioral health. Additionally, she requests $56.5 million for deflection programs related to the recriminalization of drugs in Oregon.
Wildfire Funding: Kotek is requesting $150 million for wildfire suppression costs and another $130 million for hazard reduction strategies and firefighting resources.
This proposed budget reflects Kotek’s focus on addressing urgent needs in Oregon, including affordable housing, education, mental health services, and public safety.