May 1, 2026 | AOC Advocacy, AOC News, OACES, Transportation
On Friday, May 1, Gov. Kotek’s Rebuilding Our Transportation Vision Workgroup convened in Salem for its first meeting. Kotek appointed Umatilla County Commissioner Dan Dorran, who serves as the Co-Chair of the Association of Oregon Counties (AOC) Transportation and Community Development Steering Committee, to represent the association on her Workgroup.
The Workgroup is charged with developing a report to the governor and a framework for a comprehensive transportation package for consideration during the 2027 legislative session.
AOC staff joined representatives from the Oregon Department of Transportation and League of Oregon Cities at the kick-off meeting for a joint presentation and question and answer session on the condition of the state and local transportation system.
All meetings will be streamed live on Oregon Department of Transportation’s YouTube page and recordings will be posted on the Workgroup home page. More details on the first meeting and a link to sign up for notifications about future meetings are available in this press release from the governor’s office.
County commissioners, OACES members, and AOC staff will engage directly in this process. They will contribute through the workgroup and the technical advisory subgroups, which are tasked with informing the workgroup and, ultimately, crafting the report to the governor. AOC will provide regular updates at their Transportation and Community Development Steering Committee meetings and OACES meetings.
Contributed by: Mallorie Roberts | Legislative Affairs Director
Apr 2, 2026 | AOC Advocacy
The two-year policy cycle for the Association of Oregon Counties (AOC) is underway, with members coming together to shape our legislative agenda for the 2027-2028 biennium. AOC policy steering committees are meeting to workshop and review the policy priorities and guiding principles related to county governance, services, and budgets. Decisions made this spring and summer will drive our advocacy work for the coming two years. All AOC members are encouraged to actively engage in this process throughout April, May, and June to ensure broad representation and perspective.
Each committee will identify top priority issues for the next biennium based on strategic and thoughtful analysis, the urgency of the issue, and political viability. The committees will seek input on challenges and opportunities from affiliate/associate groups and subject matter experts.
To maintain a strategic and narrow focus that allows AOC to concentrate resources, capacity, and political capital, the committees are asked to select priorities that generally:
- Unite counties
- Have a direct county nexus on county budgets, county services, and county governance
- Are within the jurisdiction/control of county governments
Informational steering committee meetings this spring will inform the final recommended priorities and principles for review and approval by the Legislative Committee at the AOC Legislative Retreat, to be held June 28-29. The final priorities and principles that our members approve will be used to guide the advocacy and engagement of our Legislative Affairs Department for the next two years. Legislative priorities are a critical component of AOC’s advocacy efforts, as they represent the platform of most pressing issues that matter most to our members, and serve as a messaging and education tool.
Policy steering committee meetings that have been announced are listed below, and invitations to additional ad hoc meetings of all committees will be sent via email as they are scheduled. Several of these meetings will be hybrid and all will have a virtual option to join. The most up-to-date information is always available on AOC’s website calendar. Meeting materials and recordings will be posted on AOC’s website under the advocacy tab for each policy steering committee when available.
AOC must be prepared to thoughtfully and effectively engage with legislators before, during, and after sessions to achieve the goals agreed upon by our members. We will spend the majority of the summer carefully crafting those goals and priorities, giving us time to gather legislative and stakeholder support for our advocacy in the 2027 and 2028 legislative sessions.
2027-2028 Policy Formulation: April Steering Committee Dates
Friday, April 3
1 p.m. | AOC Natural Resources Steering Committee (virtual only)
Friday, April 10
9 a.m. | AOC Governance, Revenue, and Economic Development Steering Committee (hybrid)
11 a.m. | AOC Health and Human Services Steering Committee (hybrid)
12 p.m. | AOC Joint Health and Human Services and Public Safety and Veterans Steering Committees to discuss transportation liability for counties when conducting court ordered civil commitments (hybrid)
1 p.m. | AOC Public Safety and Veterans Steering Committee (hybrid)
Contributed by: Mallorie Roberts | Legislative Affairs Director
Apr 1, 2026 | AOC Advocacy, Governance, Revenue, & Economic Development
After over two decades of largely preempted local transient lodging tax (TLT) revenue distribution authority, AOC and a broad coalition of local government partners passed a local TLT flexibility bill (House Bill 4148) this session. The long-sought legislation increases local government discretionary TLT revenue by 20%, allowing more investments that meet the needs of residents, visitors, and businesses alike.
Since 2003, Oregon law has required that at least 70% of any new or increased local lodging tax be spent on tourism promotion or tourism-related facilities, leaving only 30% available for core local government services. While that structure initially helped grow Oregon’s tourism economy to the benefit of tourist destination communities, unintended consequences began to arise for residents and local governments. Increases in seasonal visitation – some by five or ten fold – creates real challenges for communities limited in their ability to invest in the infrastructure and services that both residents and visitors rely on. Oftentimes, residents were left footing the bill via their property taxes.
HB 4148 represents a compromise between local governments and the tourism industry. It allows communities the option to adjust the split from 70/30 in favor of tourism promotion to 50/50. This optional adjustment allows up to half of TLT revenue to be used for general fund purposes, while still requiring at least 50% to support tourism-related efforts.
In practice, this gives cities and counties more flexibility to respond to current realities. Communities facing increased demand on public safety, roads, parks, water systems, and emergency services — particularly during peak tourism seasons or in response to repairing infrastructure after visitors leave — will now have more tools to keep up with the rising costs and strain. The bill maintains a strong commitment to tourism, while also recognizing that thriving destinations depend on well-functioning public infrastructure.
During the 2026 session, AOC led a coordinated advocacy effort among local government partners driving the political strategy in partnership with the bipartisan bicameral bill sponsors. AOC’s engagement efforts included issuing action alerts encouraging members to provide testimony, coordinating public hearing panels with local government officials, and actively meeting with legislators to vote-count the bill, educate policy makers, and help shape amendments.
AOC’s lobbying efforts would not have been successful without the sustained, united efforts of county elected officials who visited Salem on multiple days to help elevate the on-the-ground impacts this policy change would address. AOC members from across the state met with legislators one-on-one, provided testimony during both public hearings, and stayed late during work session days to observe final committee votes on the bill. The success of this legislation epitomizes the ethos of “United Counties. United Oregon.” When counties come together, historic gains can be accomplished.
Updates to local TLT revenue splits, codified in ORS 320.350, will go into effect Jan. 1, 2027. Counties can apply the 50/50 split to all net revenue collected before, on, or after Jan. 1, 2027 (see Sections 1-3 of HB 4148 Enrolled). The bill outlines new reporting requirements regarding the collection and spending of local TLT revenues. AOC will work closely with our partners at the League of Oregon Cities to develop a streamlined system that allows counties and cities to submit this data to their respective state organizations while meeting all the reporting requirements mandated under this section.
Contributed by: Justin Low | Legislative Affairs Manager
Mar 16, 2026 | AOC Advocacy
The 2026 short legislative session adjourned Friday, March 6, with the passage of many bills that will benefit Oregon’s counties. The Association of Oregon Counties (AOC) played a key role in these outcomes, working closely with legislators and partners to ensure that county perspectives were represented.
Throughout the session, AOC members and staff actively engaged with nearly 130 of the 300 total bills introduced this session for their potential impact to county budgets, services, or governance. In addition, our team analyzed and submitted fiscal impact statements on behalf of counties for nearly 140 bills and amendments, at the request of the Legislative Fiscal Office.
AOC staff, alongside county commissioners statewide, invested countless hours in the Capitol — submitting letters, providing testimony, and meeting with legislators. Their efforts were focused on protecting county budgets and services, maintaining local control, and ensuring the Legislature recognized the essential role counties play in serving all Oregonians.
AOC’s advocacy was critical given the numerous bills introduced that directly impact counties, the efforts to rebalance the state’s general fund balance, and the fast pace of session deadlines.
AOC specifically lobbied legislative budget writers in the months leading up to session, advocating for the preservation of core services by seeking savings through the least disruptive measures and avoiding cuts that reduce funding for mandated state-county shared services or shift cost burdens to county governments. The Legislature ultimately mitigated state general fund budget gaps through state agency vacancy savings and cuts to services and supplies. Consequently, county budgets avoided direct cuts or cost shifts from state agency budget rebalances.
“This session delivered serious wins for counties, a direct result of partnership and relationship-building over the last several years, strategic and thoughtful messaging, the tireless efforts of our dedicated AOC staff, and the steadfast engagement of our commissioners, chairs, and judges,” commented AOC President Erin Skaar.
The following bills passed during the short session will empower local governments to better fund core services, invest in vital infrastructure, and reform behavioral health and veterans services.
Lodging tax reform
The bipartisan passage of House Bill 4148 is a huge win for counties, increasing local control over transient lodging tax (TLT) revenue, which has been restricted since 2003. Local governments can now redirect more of this money to public safety services – law enforcement, fire, and search and rescue – responding to rising demands and impacts from visitors. Local governments can also maintain shared assets like trails, campgrounds, and parks, which report $59 million in deferred maintenance on average. Tourists increasingly stay in short-term rentals outside traditional tourism zones, adding wear on roads, parks, and water systems. Finally, TLT is now eligible to fund critical infrastructure needs, including the transportation deficit of nearly $1.5 billion and over $5 billion in water infrastructure needs faced by cities and counties.
Oregon Government Ethics Commission package
This suite of bills provides much needed updates and clarifications to mitigate risk and confusion for local governments. House Bill 4177 clarifies that information sharing, discussions of procedural matters, and comments to the media and/or constituents are not a violation of law. House Bill 4161 clarifies food and beverage accommodations for public officials. HB 4159 requires that a local government representative is on the Oregon Government Ethics Commission.
Farm stores
Another big win for local control, House Bill 4153 allows counties to approve farm stores instead of farm stands on land zoned for exclusive farm use. Passage of this bill gives counties control over permitting processes and ensures the preservation of working agricultural land. While maintaining consistency in the permitting requirements statewide, this bill gives counties flexibility around siting standards, preserving their ability to meet each community’s unique needs.
Behavioral health care
House Bill 4070A is an important step forward in the ongoing work of eliminating needless administrative burden on Oregon’s public behavioral health system. Decades of accumulated state regulation has led to duplication and confusion of roles and responsibilities for publicly funded behavioral health care, creating costly inefficiencies and distress to community members and the professionals who serve them. We are delighted by the passage of HB 4070A, aligning our behavioral health telehealth regulations with those governing physical health and providing an essential guardrail for quality of care.
Urban growth boundaries
House Bill 4035 expands eligibility for cities to extend their urban growth boundaries. The bill builds on recent reforms designed to enhance local planning flexibility by allowing communities that demonstrate clear housing and land needs to participate in a process that increases the available land for housing development.
Veterans services task force
House Bill 4099 creates a task force on responding to veterans in crisis. As frontline service providers, counties undertake the important task of helping veterans every day. County Veteran Service Officers connect veterans to benefits, and counties serve as the Local Mental Health Authority, overseeing the community mental health programs that operate mobile crisis services. Ensuring that veterans in crisis have access to trained responders to help them through that crisis will result in better outcomes and avoid involvement in the criminal justice system. AOC eagerly awaits the ideas and solutions this task force will identify.
Emergency management
AOC strongly supported House Bill 4121, which passed with bipartisan support, creating authority for statewide emergency management coordination — a function that counties are mandated to provide by statute. This bill takes both a big picture look at the infrastructure needed at the state level and zooms down to the micro level to assist local governments and community organizations as they prepare for the next disaster. There is substantial uncertainty regarding the commitment from our federal partners to state and local governments. Instead of waiting for that uncertainty to be resolved, Oregon is focused on strengthening its own capabilities for disaster preparation, response, and recovery. This bill provides the framework for public and individual assistance grant programs to mirror the FEMA programs, which can help households and local governments recover after disasters, and includes further funding for the CORE3 project in Deschutes County
Contributed by: Mallorie Roberts, Legislative Affairs Director
Mar 2, 2026 | AOC Advocacy, AOC News
Thursday, Feb. 26 was the 2026 legislative session second chamber deadline. Bills that were not voted out of their second chamber policy committee on Thursday and referred to the chamber floor, Joint Committee on Ways and Means, or committees on Rules or Revenue will not move forward this session. Policy committees have largely closed for the session and focus has shifted to several big-ticket bills in the Rules and Revenue committees and finalizing the state budget. The session must adjourn sine die by Sunday, March 8.
A deficit in the state general fund caused by H.R. 1, the federal budget bill passed in late 2025, required the Legislature to rebalance the state budget during the 2026 short session. The Association of Oregon Counties (AOC) lobbied legislative budget writers in a series of meetings and written feedback urging the preservation of core services by seeking savings through the least disruptive measures and avoiding cuts that reduce funding for mandated state-county shared services or shift cost burdens to county governments.
Rebalance proposals were made public over the weekend in several budget bills – on initial review, it appears that county budgets avoided direct cuts or cost shifts. The rebalance will be achieved largely through vacancy savings and cuts to services and supplies. Our advocacy was successful this session, but AOC and counties should be prepared for several biennia of challenging budget conversations as the overall state general fund revenue paradigm continues to shift.
Senate Concurrent Resolution 204, honoring the role of counties and AOC’s 120th anniversary, passed both chambers unanimously and now awaits the governor’s signature. SCR 204 was introduced at the request of AOC by Senate President Rob Wagner and was sponsored by House Speaker Julie Fahey, and 27 bipartisan and bicameral legislators. Unanimous support for SCR 204 is a testament to the Legislature’s appreciation of AOC’s vital role and the essential services provided by counties.
AOC is tracking around 130 of the 300 total bills introduced this session for their potential impact to county budgets, services, or governance. Our team has analyzed and submitted fiscal impact statements for about 140 bills and amendments, at the request of the Legislative Fiscal Office, on behalf of counties. As always, AOC Legislative Affairs staff continue to diligently track and defend against unfunded mandates and policy proposals with a negative impact to county governments.
Please mark your calendars to attend the March 6 and 9 AOC steering committee and legislative committee meetings – these AOC day meetings will include comprehensive debriefs of AOC’s priorities and newly passed legislation impacting county budgets, services, or governance. In the meantime, please do not hesitate to reach out to your AOC Legislative Affairs team.
Below are high level updates from AOC steering committee policy portfolios.
Governance and Revenue
AOC’s primary governance and revenue goals this session are to continue making progress on County Assessment Function Funding Assistance (CAFFA)-related objectives, including securing a statewide study from the Legislative Revenue Office and protecting against Department of Revenue agency reductions that harm local government revenues. Staff have received commitments from the House and Senate Revenue chairs to get a CAFFA study produced, and members of the Joint Committee on Ways and Means legislators have been informed about the importance of keeping DOR programs that help maintain the property tax asset.
House Bill 4148, local transient lodging tax reform, is AOC’s top policy priority this session. The bill had a very successful public hearing with many county officials testifying in person and passed the House floor with 40 “yes” votes. HB 4148 awaits a work session in the Senate Committee on Finance and Revenue.
Health and Human Services
AOC’s health and human services objectives this short session are to preserve all funding for public health, developmental disabilities and behavioral health services, prevent and reduce administrative burden and liability, and maintain the local public health and local mental health authority of county governments. These objectives are well aligned with legislative leadership’s priorities to maintain or grow core community services to resolve federal court sanctions related to the Mink-Bowman lawsuit and long wait times for forensic admissions to the Oregon State Hospital. AOC is working with bill sponsors and partners to meet these policy objectives and significant progress is being made.
It appears at this time that local public health, behavioral health, and intellectual and developmental disabilities program budgets, as well as homelessness prevention and response are being held harmless. A $15.5 million reduction in Behavioral Health Resource Network funding in Senate Bill 5703-1 is simply a reconciliation of the state budget with the recent reduction in the marijuana tax revenue forecast and not a new cut.
Natural Resources
Efforts in this portfolio are focused on ensuring that natural resources state agency budget reductions do not impact county programs and budgets. Initial budget reduction proposals included potential impacts of $40 million to county programs including wildlife services, place-based water planning, invasive species, and wildfire protection. AOC’s direct advocacy for the preservation of natural resource-related programs and budgets was successful – programs and funding on which counties rely were protected and even increased. Several notable increases include direct allocation for the Land Owner Offset in the Department of Forestry Budget ($11.6 million), additional funding for the Wolf Depredation Grant Program ($1 million) and funding for the Japanese Beetle Eradication Program ($1.8 million).
Public Safety
AOC has focused on budgetary issues and protecting public safety programs from cuts – and with the release of today’s budget bills, county public safety has been held harmless. AOC has also been heavily involved in negotiations around the federal accountability agenda from the majority party. Staff worked with legislators and partners to mitigate risks and costs to counties from concepts related to employment law, law enforcement masking, county liability, and task force participation.
Transportation
AOC’s primary objective in the transportation policy portfolio this session is to ensure that the measures necessary to fill the nearly $300 million operations and maintenance budget gap at the Oregon Department of Transportation (ODOT) do not negatively impact county road department budgets. The ODOT rebalance proposal transfers unobligated State Highway Fund dollars toward agency operations and maintenance including dollars in the Connect Oregon and Safe Routes to Schools programs, redirects some federal funding, and leaves around 100 jobs vacant.
ODOT’s budget rebalance has no impact on the 50/30/20 funding formula, Local Bridge Program, or the Fund Exchange Program. AOC also thwarted earlier attempts to address ODOT’s budget gap with measures that sweep and undermine the State Highway Fund distribution.
Contributed by: Mallorie Roberts | Legislative Affairs Director
Jan 30, 2026 | AOC Advocacy, Governance, Revenue, & Economic Development
During the 2025 legislative session, Oregon local governments came closer than they have in more than two decades to modernizing how the local transient lodging tax (TLT) works. A reform bill (House Bill 3962 A), supported by a broad coalition of local government and public safety stakeholders, cleared a critical policy committee vote, advanced out of the House, but then stalled in the Senate without a floor vote due to session running out of time.
Although the outcome was disappointing, the near miss has only galvanized counties and cities to get the bill across the finish line in the 2026 short session. An effort to reform the local TLT has the potential to be one of the most consequential legislative efforts of the session for local governments in the 2026 legislative session. Passage of this legislation will mark a victory for local control, public safety investment, infrastructure resilience, and fairness for residents that remain after tourists leave their communities.
Two versions of the local TLT reform bill will be introduced: Senate Bill 1562 sponsored by Senators Weber and Neron Misslin and House Bill 4148 sponsored by Representatives Walters and Javadi. These bills are identical in language and exist primarily to offer local governments two paths to attempt to pass the bill in 2026.
2003 Rules Governing 2026 Realities
Current law ties the hands of local governments by locking in revenue ratios from post-2003 local TLT increases to a 70/30 split, with 70% of revenues statutorily required to be spent on very specific infrastructure and services that support tourism, and 30% of revenues directed toward general fund discretionary spending. While this ratio worked for the 2000s and early 2010s, these ratios no longer reflect how tourism impacts communities and local governments.
For many counties, peak tourism seasons mean populations that double, triple, or even quadruple overnight. That surge places real and measurable strain on sheriff patrols, jail capacity, search and rescue operations, EMS response times, roads and bridges, sanitation systems, and outdoor recreation infrastructure. Those costs do not disappear when visitors leave; they are borne year-round by the residents and local governments who maintain these systems.
The reintroduced bills in 2026 would not eliminate tourism promotion funding. Instead, it would allow local governments to adjust post-2003 TLT distributions so that up to 60% may be designated as general fund dollars to be used for critical local services and infrastructure, while maintaining a dedicated 40% for tourism promotion and facilities.
Why This Matters to Every County — Not Just “Tourism Counties”
It is tempting to assume that this debate primarily affects coastal or other destination communities. However, that assumption is outdated.
Tourism patterns have shifted dramatically. Short-term rentals are increasingly located outside traditional tourism cores, spreading wear and tear across county road systems, rural water districts, and unincorporated areas. At the same time, counties face mounting infrastructure backlogs, like transportation and water infrastructure needs, without meaningful growth in flexible revenue options.
Importantly, the local TLT is one of the only tools counties have to capture visitor-generated costs without shifting the burden onto permanent residents through new property taxes, levies, or bonds. Gas taxes are declining in real value, are distributed on a per-capita basis rather than road usage, and do not reflect tourism impacts. Income taxes flow to state priorities that may not align with local needs. In short, counties are being asked to absorb visitor impacts with tools designed for a very different era.
2026 Will Be a Turning Point for Local TLT Reform
The 2025 session demonstrated that this reform is viable. It moved. It gained traction. And it came within a single chamber of becoming law. What will make the difference in getting the bill passed in 2026 is that local governments are better prepared, have had more time to meet with legislators, and intend to move quickly on the bill to avoid it being left on the table at the eleventh hour of session.
If you are interested in supporting this effort in 2026, please contact Justin Low to coordinate the following opportunities:
- Providing public or written testimony in support of the bill
- Traveling to Salem to meet directly with legislators
- Drafting an op-ed for publication in your local newspaper to elevate the county perspective
County voices were essential to getting local TLT reform as far as it went in 2025, and they will be decisive in getting it across the finish line in 2026.
Contributed by Justin Low | Legislative Affairs Manager
