Governor Kotek’s Stability Budget Focuses on Housing, Homelessness, Education, and Drug-Related Challenges

Solving the housing shortage and homelessness, improving academic levels of achievement, and addiction challenges are the pivotal issues addressed by Oregon Governor Tina Kotek in her $39.3 billion budget released yesterday (Monday).

The budget will be tabled for approval when lawmakers meet in January.

The 2025-2027 Budget is Grounded in Reality

Presenting what she termed her ‘Stability Budget,’ Kotek said no services have been cut, nor major programs proposed. Instead, her budget was ‘grounded in reality’ of the state and its resources.

She told a press conference that she requested state agencies to limit their budgets to an increase of 1% and to prepare lists of core services that could be cut by 10%.

Kotek said she believed Oregonians would be better served by a commitment to practicalities and not ‘well-meaning hypothetical wish lists.’

She is calling for $11.4 billion to be spent on public schools and more than $2 billion to be spent on homelessness and housing.

This is how the governor suggests lawmakers allocate funds for her three pivotal projects.

The Housing Crisis

Since taking office, Kotek has advocated for solutions to the housing and homelessness crisis in Oregon.

With the boost of hundreds of millions of dollars from the Legislature, Kotek’s vision has and will result in permanent homes for 3,300 families, the provision of 4,800 beds at shelters throughout the state, and 24,000 individual rent-assistance allocations.

A recent statewide housing survey revealed that population growth in Oregon last year outpaced the construction of new homes, resulting in the need to build 500,000 units over the next 20 years.

Kotek is asking for $880 million for affordable housing units, $105 million for rent assistance, $100 million for road building and utilities at new housing projects, and $57.6 million to support first-time affordable housing buyers.

Provisions to Curb Homelessness

The governor wants $218 million to maintain beds at homeless shelters, $188 million for the homeless to transition into housing, $173 million for short-term rent assistance for those at risk of becoming homeless, and $105 million for long-term rental assistance.

A Record-Breaking Education Budget

Kotek’s education budget calls for a record-breaking $11.3 billion expenditure in Oregon school districts and community organizations.

The governor is calling for $127 million for early childhood literacy programs, $78.5 million for summer education programs, and $25 million for drug addiction and mental health programs at schools.

Oregon’s Ongoing Drug Abuse Challenges

Addiction, death by overdose, and an alarming growth in the use of fentanyl are problems that haunt most of the country and one that has often shot Oregon to the forefront as an advocate of leniency.

In her budget, the governor points out that behavioral health services are lacking, with many people turned away when seeking help because of loopholes in the system. Kotek says there is an equal shortage of educational opportunities for those wanting a career in behavioral health.

At her direction, the Oregon Health Authority revealed an existing shortage of more than 3,700 beds for inpatient drug addiction treatment.

Kotek is asking for $90 million for 336 new treatment beds; $50 million to boost training opportunities; $40 million to help counties cover the cost of deflection programs created when lawmakers recriminalized the possession of small amounts of drugs such as methamphetamine, heroin, cocaine, and fentanyl; $32 million for harm reduction medications such as Naloxone; $16.5 million for community health programs; and $15 million for medication-assisted drug treatment at county jails.