Jan 29, 2026 | AOC Advocacy, Health & Human Services
Updates on Coordinated Care Organization (CCO) cuts to Community Mental Health Programs funding, impacts of Mink-Bowman lawsuit on local services, Rural Health Transformation grants, state-county partnership on HR 1 implementation, and the Statewide Shelter Program.
In case you missed it: Jan. 23 Local Government Advisory Committee (LGAC) on Health and Human Services (Meeting recording; Chat transcript)
CCO cuts to Community Mental Health Programs funding
Despite CCO’s ORS 414.153 obligation to maintain the mental health safety net system provided through local mental health authorities in order to meet the needs of their Oregon Health Plan (OHP) members, CCOs across the state are making significant cuts to their 2026 contracts with Oregon’s Community Mental Health Programs (CMHP). The mental health safety net, which includes court-ordered services necessary for the Oregon Health Authority (OHA) to effectively manage the Oregon State Hospital census, requires adequate OHP reimbursement for program viability.
The Association of Oregon Community Mental Health Programs described addressing this threat to Oregon’s safety net as a top priority, along with mitigating the expected loss of federal funding from HR1 and a longer term effort to close the funding gap identified in the latest cost study of required CMHP services. Many CMHPs also rely on Behavioral Health Resource Network grants which just received 14% reductions due to falling cannabis tax revenue projections.
CMHPs have been in discussion with OHA on potential solutions, including joint advocacy to the Legislature for sustainable funding for crisis stabilization centers;
prioritizing approval of CMHPs as new Certified Community Behavioral Health Clinics (CCBHCs); ensuring adequacy of CCO contract exhibit M (adequate networks/funding); and establishing a base rate for CCO reimbursement for priority populations and services set by OHA in the County Financial Assistance Agreement, such as Assertive Community Treatment, Early Assessment and Supports (EASA), Supported Employment, and WRAP.
During discussion at the Jan. 23 meeting, committee members noted that the CCO contract cuts have already resulted in loss of service to hundreds of community members, including medication management. Also on the chopping block are intensive youth services, medication assisted treatment for substance abuse, and supported employment, among others.
This issue will be a standing item on the committee agenda each month until it is adequately addressed, including the next meeting on Feb. 27.
Impacts of Mink-Bowman lawsuit on local services
Court Monitor Dr. Debra Pinals provided an update on her work with the state to address the wait times for persons in county jails to be admitted to the Oregon State Hospital (OSH) for competency restoration. Her latest update, Neutral Expert 10th Quarterly Report Regarding the Consolidated Mink and Bowman Cases, published in December, showed an average wait time of 21 days driven by an increase in court-ordered placements; the federal court-mandated maximum is seven days.
The state is accruing fines now in excess of $2 million on a per person per day basis for noncompliance with the court order. The court is making exceptions to the fine for cases where there is a delay in court orders or in transportation by county sheriffs. Those courts and sheriffs are being notified by OSH in those cases. Dr. Pinals is overseeing a workgroup which will decide how to disburse funding from the fines.
A community restoration program manual overseen by Dr. Pinals is now in draft form. She is also focusing on improvements to transitions out of OSH.
Public Consulting Group (PCG) has been contracted to provide an independent evaluation and is currently conducting a ‘deep dive’ into state budgetary allocations and expenditures for behavioral health services in order to identify what resources are needed and where to bring the state into compliance. Report recommendations are expected to come this spring.
Committee discussion noted the need for ongoing collaboration between Dr. Pinals and state and county partners on these efforts.
Rural health
OHA Policy Director Steph Jarem gave an update on Oregon’s Rural Health Transformation plan development. Oregon was awarded $197.3 million for Year 1 with an expected total over the next five years of about $1 billion. The definition of ‘rural’ is the same as used by Oregon’s Office of Rural Health. A contractor will support OHA in conducting regional conversations for the first of five initiatives within the program which focuses on regional partnerships and system transformation. OHA is still in final negotiation with the federal agency and expects to release its RFP in the spring with local award funding probably released in the summer. Director Jarem’s slides provide helpful details on federal eligibility requirements, allowable and not allowable use of funds, and Oregon’s five initiatives. Awards will prioritize ready-to-go projects and projects that are collaborative among local/regional partners.
State-county partnership on HR 1 implementation and the Statewide Shelter Program
County Health and Human Services directors brought forward a request for guidance from OHA on specific codes to use to demonstrate an individual’s exemption from new Medicaid eligibility requirements, e.g., definition of medical fragility, and noted the need for robust provider education ahead of the July 1 implementation of those new requirements. OHP Community Engagement Director Jessica Deas provided an HR1 Impacts and Strategies update. The committee will revisit this topic for new developments in February.
Oregon Housing and Community Services Department Director of Housing Stabilization Liz Weber provided an update on the implementation of the Statewide Shelter Program. Applications for new regional coordinators are now under review and will be announced “soon.” The new rules and program manual will not go into effect until those new regional coordinators are in place. Committee members recommended that new regional coordinators be required to have an active MOU with counties to ensure effective coordination.
Also presented was the state’s process and rationale for allocating the $65 million dollars directed by the 2025 Legislature to increase behavioral health residential treatment capacity and short overviews of OHA and ODHS rebalance proposals currently before the Legislature.
Contributed by: Jessica Pratt | Legislative Affairs Manager
Jan 28, 2026 | AOC Advocacy, AOC News
The Oregon State Legislature’s 35-day short session begins on Feb. 2 and must end no later than March 8. Legislators’ primary objectives during the 5-week sprint will be mitigating historic budget gaps in both the state general fund and at the Oregon Department of Transportation. The Association of Oregon Counties (AOC) Legislative Affairs team is working closely with legislators and our colleagues in Salem to protect county budgets and services during this process. AOC expects to make incremental progress on our 2025-26 legislative priorities, setting the stage for a productive interim.
AOC steering committees and the Legislative Committee will meet on Feb. 6 and 9 to review and take positions on bills impacting county services, budgets, and governance. AOC staff, alongside our steering committee co-chairs and the AOC Executive Committee, strive to ensure the association’s resources and political capital are leveraged strategically and effectively. Our processes and advocacy are strongest when commissioners, judges, and chairs from all member counties engage.
Committee meeting information is posted on the AOC website on the calendar and on each committee page accessed by the Advocacy drop-down menu.
The AOC Legislative Affairs Department looks forward to a successful and productive month advocating in the State Capitol for counties and the services they provide.
Contributed by Mallorie Roberts | Legislative Affairs Director
Dec 15, 2025 | AOC Advocacy
The 2026 legislative session will primarily focus on rebalancing the state general fund after impacts from the federal budget bill passed this summer, H.R. 1, created a significant gap in the state budget. Changes to federal tax laws, to which the Oregon tax code is tied, are projected to result in at least a $63 million dollar budget hole in the current biennium (possibly closer to $370 million), and current projections forecast an expected loss of $15 billion in federal funding for Medicaid and food assistance over the next six years.
Members and staff from the Association of Oregon Counties (AOC) met with Ways and Means Co-Chairs Senator Kate Lieber and Representative Tawna Sanchez for a special state budget briefing this month. The co-chairs provided a detailed overview of the state’s general fund challenges and options for rebalancing in 2026. The message relayed by county representatives to the co-chairs was clear – counties across Oregon are facing significant budget challenges of their own and cannot bear cost shifts or funding cuts. The Legislature should consider AOC and counties to be reliable partners with whom to collaborate on solutions for efficient delivery of critical public services to every Oregonian.
The Legislature is constitutionally required to pass a balanced biennial budget and has three basic options for addressing the gap — reduce spending, increase revenue, and access reserve accounts. To reduce spending, all state agencies were asked to submit proposals for both 2.5% and 5% budget reductions that could be adopted in the 2026 session along with a list of all programs established or expanded since 2021. Ways and Means Subcommittees received presentations on these reduction proposals during November Legislative Days, and have been subsequently holding stakeholder meetings to solicit feedback. AOC staff is meeting with legislators and providing ongoing feedback on proposals related to the delivery of essential county services.
The Department of Administrative Services published a detailed overview of the estimated impacts of H.R. 1, available here. The Legislative Revenue Office’s report on the impact of H.R. 1 on state general fund revenue is available here. This public folder includes estimated impacts by program areas.
The revenue forecast provided to the Legislature by the state economist in February will dictate exactly how much of a state general fund revenue gap the Legislature must fill during the 2026 short session. AOC will keep our members up to date as conversations about budget cuts and rebalances continue.
Contributed by: Mallorie Roberts | Legislative Affairs Director
Oct 30, 2025 | AOC Advocacy, Public Safety & Veterans
Senate Bill 97, passed by the Legislature this session, gives counties the authority to increase access to mediation services by reducing the costs to participants. It also develops a fuller picture of how these services are operated in each county, especially since rural and frontier counties do not have the volume of marriages to generate significant revenue for this mediation fund.
Counties and the Oregon Judicial Department (OJD) fund mediation services for divorce cases where children are involved. The county side is funded by an optional surcharge on marriage licenses. The intent of these mediation programs is to provide an alternative pathway for families and allow them to resolve disputes in a less formal manner and reduce stress on children in the process. Mediation services are quite expensive, between $100-200 per session, and only about half of family law cases with children are served through mediation due to limited access.
This optional fee was capped at $10 for the last 48 years, until the Legislature passed SB 97 in the 2025 session. The bill raises the cap to $35 and indexes it to inflation going forward. Counties can choose to levy any amount up to the cap as part of their normal fee schedule development resolution or ordinance. This fee would be collected by the county clerk upon issuance of the license. Currently only 12 counties levy this optional fee (Clackamas, Clatsop, Curry, Deschutes, Josephine, Lake, Lane, Lincoln, Marion, Multnomah, Umatilla, and Washington).The bill took effect May 28, upon the governor’s signature.
The bill also establishes a quarterly fiscal report, paid for out of the mediation funds, that county treasurers must submit to OJD via the presiding judge for each county. The intent of this report is to show OJD how mediation funds are being used across the state. Since these funds are administered by the counties, there isn’t a statewide picture of the funding gaps. Some counties are able to supplement these programs with general fund dollars, but most are not.
Contributed by: Tim Dooley | Legislative Affairs Manager
Oct 30, 2025 | AOC Advocacy
The Moderate-Income Revolving Loan Program (MIRL), established by Senate Bill 1537 (2024), capitalizes a 75-million-dollar investment to support local efforts in increasing production of both rental and homeownership housing for households earning up to 120% of area median income. According to the Oregon Housing and Community Services Department (OHCS), MIRL funding can be used to fill a gap in eligible project financing, allowing OHCS to issue loans to cities and counties (referred to as sponsoring jurisdictions), who then award the funding as a grant to housing project developers.
The loan is repaid to OHCS in lieu of property taxes on project improvements to replenish the revolving loan for funding future MIRL projects. MIRL funding is allocated on a first-come first-serve basis. A maximum of $50 million is available in the first two years with 20% of that being allocated to rural communities.
OHCS staff presented an overview of the program at the AOC Transportation and Community Development Steering Committee meeting in October (View slides).
The Association of Oregon Counties (AOC), the League of Oregon Cities (LOC), the Oregon Homebuilders Association, and OHCS are holding a joint webinar about the program.
Webinar: Making MIRL Work For Your Community
Date: Wednesday, Nov. 5
Time: 3-4:30 p.m.
Click here to join the webinar
More information and additional resources are available on the MIRL Webpage, or you can schedule a 1:1 Technical Assistance meeting with the MIRL Team from OHCS.
Contributed by: Branden Pursinger | Legislative Affairs Manager
Oct 1, 2025 | AOC Advocacy
The Legislature is meeting in Salem this week for Interim Legislative Days committee hearings. As always, your AOC Legislative Affairs Department actively participates in and monitors hearings, and will use the opportunity to connect with legislators, particularly around AOC Policy Priorities while they are in Salem.
The Legislature will convene for additional sets of Legislative Days meetings before the 2026 regular session — Nov. 17-19, 2025, and Jan. 13-15, 2026.
Below are links and highlights from the hearings with particular relevance to county governance, services, and budgets.
Joint Interim Committee on Transportation
- Oregon Department of Transportation presentations
Senate Interim Committee on Labor and Business
- Oregon Employment Department presentation
- Report on unemployment data
- Around 7,500 jobs added in the month of August 2025, but a net loss of over 15,000 jobs from January to August 2025
- Unemployment rates are rising
House Interim Committee on Emergency Management and Veterans
- AOC, Oregon State Sheriffs Association, and the League of Oregon Cities presentation on Local Emergency Management and Federal Funds
- Uncertainty around federal grant funds continues. Several programs have had funding notices issued, but are subject to court cases regarding terms and conditions related to immigration enforcement.
House and Senate Interim Committee on Judiciary
- Oregon Crime Statistics Update from the Criminal Justice Commission (CJC)
- CJC provided an update on the statewide picture of crime through the end of 2024.
- Department of Public Safety Standards and Training, Oregon State Sheriffs Association, and Oregon Association of Chiefs of Police update on Law Enforcement Identification
- Presentation on local law enforcement practices that present a uniform appearance and promote public trust
- Lane County and Seattle Drug Deflection
Senate Interim Committee on Veterans, Emergency Management, Federal and World Affairs
- Oregon Emergency Management (OEM) Update
- Informational update about past disasters and federal funding. OEM’s message that uncertainty around federal funding impacts emergency preparedness is well-aligned with AOC.
House Interim Committee on Rules
- Oregon Government Ethics Commission (OGEC) Presentations
- OGEC advisory opinion No. 25-126A (food and beverages for public officials and employees)
- If a local government does not adopt an official compensation package that includes meals for public officials, then accepting food and beverage violates ORS 244.040(1)
- FAQ on serial meeting communications
- Key takeaways:
- A quorum of a governing body does not have to be engaged in the same form of communication at the same time for it to be considered a prohibited serial communication
- Prohibited serial communications can occur during a public meeting through electronic messages or even hand-written notes
- A quorum of governing body members should not attend town halls or community events to discuss matters within the governing body’s jurisdiction. If a quorum is present, then the governing body would need to hold the gathering as a public meeting
- AOC staff will be engaging in a legislative workgroup with local government partners in the fall of 2025 to address the food and beverage opinion and serial meeting communications issues.
Senate Interim Committee on Housing and Development
- Department of Land Conservation and Development presentations
House Interim Committee on Housing and Homelessness
- Housing Accountability and Production Office (HAPO) update
- The HAPO is tasked with ensuring local land use codes and decisions meet state law, provide technical assistance and funding to local governments to update their land use codes, and research areas where barriers still exist to develop ways to help local governments, such as model codes and permit-ready plans.
Senate Interim Committee on Natural Resources and Wildfire
- Oregon Department of Forestry and the Oregon State Fire Marshal presentation on the 2025 wildfire season
- The AOC Natural Resources Steering Committee will hear this presentation on Oct. 10.
Senate Interim Committee on Finance and Revenue
- The Legislative Revenue Office overview of the impact of Federal House Resolution 1 (H.R.1) on the state’s General Fund, as well as the most relevant tax breaks to individual and business tax filers
- Panels of advocates in support and opposition of Oregon disconnecting from the federal tax code gave presentations to the committee.
House Interim Committee on Early Childhood and Human Services
- Impacts of federal level changes on nutrition assistance and early learning programs
- Oregon Head Start programs experienced frozen funding and award delays throughout 2025. The regional office serving the Pacific Northwest was eliminated, resulting in loss of direct contacts at the federal agency and of technical and administrative support.
- About 310,000 adults will need to be reviewed for work requirements or exceptions for Supplemental Nutrition Assistance Program (SNAP) eligibility; about 3,000 individuals will lose benefits, including refugees, asylees, and other conditionally allowed individuals. SNAP benefits won’t rise with food prices, making it harder for people to afford groceries. About 29,000 households will see an average monthly benefit decrease of $58.
Joint Interim Committee on Ways and Means Subcommittee on Human Services
- Work session: retroactive approval of Oregon Health Authority application to the Substance Abuse and Mental Health Services Administration (SAMHSA) for supplemental Community Mental Health Services Block Grant funding of $302,198. Approved, referred to Full Ways and Means.
House Interim Committee on Health Care
Senate Interim Committee on Human Services
- Stabilization and Crisis Unit (SACU) Transformation Planning
- SB 1557 (Delivery of mandatory services to kids with complex needs) implementation report
House Interim Committee on Behavioral Health
- Oregon Health Authority Behavioral Health Division
- Department of Consumer and Business Services, Division of Financial Regulation
- Care Oregon
- Association of Oregon Community Mental Health Programs
Senate Interim Committee on Early Childhood and Behavioral Health
