AOC Looks Ahead to 2025 as the Short Session Draws to a Close

AOC Looks Ahead to 2025 as the Short Session Draws to a Close

AOC kicked off the 35-day 2024 legislative “short” session on Feb. 5, with a full day of internal policy meetings followed by our 2nd Annual Open House. The event proved again to be a great success, bringing legislative and state agency leaders together with county commissioners and judges for networking and relationship building. Feedback from members and partners was enthusiastically positive, and AOC Executive Director Gina Nikkel confirmed that AOC will make the first day of session AOC Open House an annual event.

AOC appreciates members who joined us in advocating for our priority policy items in the Capitol, via virtual testimony, and by responding to calls to action during the fast-paced legislative session. The AOC legislative affairs team saw our staff and members focus on relationship-building and solutions-oriented advocacy pay off in a productive legislative session for counties. Our consistent messaging of state-county partnership is showing signs of progress, with legislative leadership, state agencies, and critical partner stakeholders increasingly looking to AOC for input early in the policymaking process. 

“Counties should consider the 2024 session a win both in achieving our policy goals and elevating the county voice in the Capitol. AOC members should continue to show up and engage in our process so we can extend this trend of success and carry proactive statewide policy proposals into the 2025-26 biennium,” said AOC President Danielle Bethell.

Please mark your calendars to attend the March AOC steering committees and Legislative Committee meetings where the legislative affairs team will provide a session recap. Be on the lookout for calendar invitations to ad-hoc meetings of AOC steering committees from April to early June. Deep dives and brainstorms this spring will lead into AOC steering committees and the AOC Legislative Committee convening June 20-21, in person, in Salem to consider and adopt AOC policy priorities for the 2025-26 biennium. AOC looks forward to diving into proactive policy development this spring and bringing statewide solutions to lift all Oregon communities in the 2025 legislative session.

Contributed by: Mallorie Roberts | legislative affairs director

NACo Legislative Conference Offers Opportunity to Network, Learn, and Collaborate

NACo Legislative Conference Offers Opportunity to Network, Learn, and Collaborate

Over thirty Oregon county officials and representatives of the Association of Oregon Counties (AOC) joined approximately 2,000 attendees from across the country in February at the National Association of Counties (NACo) 2024 Legislative Conference in Washington, D.C. 

President Joe Biden headlined the conference, along with cabinet secretaries, leads of federal agencies, representatives from Capitol Hill, private sector partners and senior administration staff. Conference attendees shaped NACo’s legislative agenda, received updates on key federal policies, and advocated for county priorities on Capitol Hill. 

President Danielle Bethell commented, “this conference is a great opportunity for commissioners to network, not just with our Oregon peers, but our peers across the nation, and develop intergovernmental partnerships with federal officials on issues important to Oregon counties. This year’s conference offered what felt like more of an opportunity to really dig into important issues to Oregon, together. I really enjoyed the time spent with those who attended and look forward to next year.”

During the conference, the Oregon delegation engaged in NACo policy discussions through NACo’s policy steering committee process, as well as breakout sessions, and general sessions, hearing from a range of speakers in the federal government. Issues covered included disaster preparedness and management, administering the 2024 election, artificial intelligence (AI), housing affordability, behavioral health and justice, and more.

“Federal policies often have direct and long-lasting impacts on county governments and our residents,” said NACo President Mary Jo McGuire. “NACo’s Legislative Conference is an essential opportunity to advocate for county priorities and strengthen intergovernmental partnerships that help our communities move forward together.”

AOC members also met with U.S. Senator Ron Wyden to advocate for AOC policy priorities. Executive Director Gina Nikkel expressed appreciation for Wyden’s partnership and engagement with counties. “I am grateful for Wyden’s openness and availability to connect with AOC membership on a variety of county issues.”

County officials across Oregon found meaning in the program content, as well as the networking opportunities. First Vice President John Shafer encourages commissioners and other county leaders to attend the conference. “So many incredible things happened. From seeing a sitting president to discussing rural issues to visiting the Capitol, the conference offers opportunities to effect change at the federal level that benefits every county.”

For more details about the 2024 NACo Legislative Conference, click here.

Contributed by: Erin Good | communications coordinator

OLCC Lowers County Liquor Revenue Projections by $12.9 Million

OLCC Lowers County Liquor Revenue Projections by $12.9 Million

In a February presentation to a legislative budget subcommittee, the Oregon Liquor and Cannabis Commission (OLCC) revealed that recent liquor sales trends have not kept pace with expectations, and associated revenue projections are being revised downward. 

According to the commission, sales of distilled spirits in Oregon grew steadily over the past couple of decades, and then sped up significantly between 2019 and 2021. Experts anticipated those accelerated growth trends would continue through 2023-25. However, as 2023-25 data has become available, the projected growth has not materialized. Rather, growth trends seem to be flattening. OLCC notes that flattening trends in alcohol consumption in Oregon align with national trends. 

Slower liquor sales will translate into significantly lower county revenues for 2023-25, the OLCC said. Their prior forecast anticipated counties would receive $64.2 million for the biennium, but their new forecast indicates counties should expect only $51.3 million.

It isn’t known whether flattening sales trends reflect lower alcohol consumption, or whether consumers are just choosing less expensive spirits. However, the fact that alcohol consumption surged during the pandemic was widely reported, so the recent flattening trend could indicate that overall sales trends are returning to normal.

Contributed by: Michael Burdick | legislative affairs manager

Counties Could Bring in More PILT Funding from New SRS Road Districts Law

Counties Could Bring in More PILT Funding from New SRS Road Districts Law

The Oregon Department of Administrative Services (DAS) has begun implementation of an innovative policy to support increased revenue for public lands counties. 

Under House Bill 2174 (2021), upon request of a county, DAS is required to credit forest reserve funds that would otherwise be credited to a county road program, to a separate public entity created by the county.

This policy, developed by the Association of Oregon Counties (AOC) in partnership with Representative Mark Owens (R-Crane), provides flexibility for county governments to increase federal dollars from Payment-in-Lieu-of-Taxes (PILT) to support critical needs in rural communities by diverting the 75 percent of U.S. Forest Service (USFS) Secure Rural Schools (SRS) Title I payment to a separate public entity. 

Funding credited to a public body under the new law is to be used in the same manner and subject to the same restrictions that would have applied to the funding under the previous distribution model, including, but not limited to, the statutory requirements related to a county road fund.

Counties may now submit requests to DAS by emailing DAS.Distributions@das.oregon.gov with the below information. The deadline for submission to DAS is March 1, and DAS expects disbursements from the federal government in April.

Information Needed:

  • W9 – Include the TIN
  • LGIP for new agency
  • Memo to DAS, asking to add the LGIP account to the vendor profile
  • County Ordinance declaring the road agency
  • County Intergovernmental Agreement

DAS Staff Contact:
Laura Burnett
971-719-3183
DAS.Distributions@das.oregon.gov

Eligible public entities include:

  • An intergovernmental entity created by agreement under ORS 190.003 to 190.130,
  • A county road district formed under ORS 371.055 to 371.110, or
  • A service district for roads established under ORS Chapter 451.

Jefferson County and Klamath County have passed local ordinances in accordance with HB 2174. These counties have offered to share their county ordinances and intergovernmental agreements (see links below) to serve as a reference for other countries exploring the new law. 

Additional resources and information on road district formation are available in the AOC County Road Manual (Chapter 3: Road Revenue, 3.150 County Service District, 3.170 Intergovernmental Transportation Agreements, and Chapter 12: Districting for Road Purpose). 

As an important note, SRS payments and PILT payments fall at different times on the calendar, and SRS payments must be allocated to a road district before increases in PILT can be realized. Once a road district is set up, and DAS is notified, they will set up a new vendor profile for the new district, as the payee, changing the payout from the county to the new district. DAS accounting staff will ensure the apportionment among counties of money received from federal government forest reserves is amended in the distribution formula pursuant to ORS 293.560 and ORS 294.060.

Contributed by: Jordan Cole | AOC County Road Program analyst

AOC/LOC Transportation Funding Forum Update 

AOC/LOC Transportation Funding Forum Update 

The Association of Oregon Counties (AOC) and League of Oregon Cities (LOC) continued the Transportation Funding Forum meeting series in January (watch recording), featuring presentations from Governor Kotek’s transportation policy staff and transportation stakeholders in the construction industry, the environmental community, transit, and freight carriers. The discussion explored the range of interests and priorities in the future of Oregon’s shared transportation system.

The forum series will continue through 2024 to further coordination, collaboration, and shared understanding of local government interests in the future of Oregon’s transportation funding system and increase transparent, partnership-oriented communication with state agencies, stakeholders, and the legislature. Upcoming forums will take deep dives into national trends in the future of transportation funding, explore local revenue options, more specific needs related to safety, bridges, and the multimodal system.

The kickoff forum meeting in August (watch recording) provided a detailed overview of federal, state, and local funding mechanisms and how these revenue tools work together to fund the current system. The October meeting (watch recording) featured presentations from city and county road departments to demonstrate the range of local jurisdiction transportation budgets and varied regional project priorities.

Contributed by: Mallorie Roberts | AOC legislative affairs director

AOC Priorities for the 2024 Legislative Session

AOC Priorities for the 2024 Legislative Session

The 82nd Oregon Legislative Assembly will convene on Monday, Feb. 5, for a 35-day session. Legislators will return to the Oregon State Capitol, still under major construction, with the historic wings remaining closed. Association of Oregon Counties (AOC) members are encouraged to join policy steering committee meetings on Feb. 2, and Feb. 5, to learn about and weigh in on legislative concepts impacting counties. Members can expect email communications from AOC’s legislative affairs department with timely updates and action alerts related to high priority bills.  

The AOC legislative affairs department and membership will focus their advocacy during the 5-week session on the following top policy priorities identified by the AOC Legislative Committee.

Community Development

  • Advocate for a fast-track process for limited urban growth boundary expansions that significantly increase affordable and workforce housing in all communities experiencing shortages of buildable land. (LC 19 – Governor Kotek’s housing bill)

    Contact: Legislative Affairs Manager Branden Pursinger, Natural Resources and Land Use,
    bpursinger@oreogncounties.org

Governance and Revenue

  • Address problems arising out of the U.S. Supreme Court’s decision in Tyler v. Hennepin County  — limit county legal liability and create a standard process for how foreclosure surplus claims are handled. (HB 4056 – introduced by Representative Conrad)

    Contact: Legislative Affairs Manager Michael Burdick, Governance and Revenue,
    mburdick@oregoncounties.org

Health and Human Services

  • Establish a statutory process and schedule for a cost study of core behavioral health services (local services required in statute). (LC 115 – introduced by Representative Nosse)
  • Mitigate liability risk shift to counties and local system providers for mandated populations (aid and assist, civil commitment, and guilty except for insanity).

    Contact: Legislative Affairs Manager Jessica Pratt, Health and Human Services,
    jpratt@oregoncounties.org

Natural Resources

  • Protect and enhance county authority, funding, and flexibility to support management policies and locally focused policy making processes across the Natural Resources portfolio.

    Contact: Legislative Affairs Manager Branden Pursinger, Natural Resources and Land Use,
    bpursinger@oreogncounties.org

Public Safety

  • Increase state investment in community corrections funding for the remainder of the 23-25 biennium.
  • Elevate the county voice in Measure 110 reform, supporting policy modifications that prioritize engagement in substance abuse treatment, provide sufficient funding for county services, and strengthen tools the criminal justice system can use to fight illegal drug use and sales.

    Contact: Legislative Affairs Manager Jen Lewis-Goff, Public Safety and Veterans,
    jlewisgoff@oregoncounties.org

Transportation

  • Advocate for the statutory authority for counties to charge cost-recovery fees for permits issued to utilities for work in the county road right of way. (SB 1566 – Joint Committee on Transportation committee bill)

Contact: Legislative Affairs Director Mallorie Roberts, Transportation, mroberts@oregoncounties.org