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Governor Kotek Issues Notice of Potential Vetoes
The notice relates to budget items in Senate Bill 1530 and Senate Bill 5701

Salem, OR – Today, pursuant to Article V, section 15b, of the Oregon Constitution, Governor Tina Kotek provided notice to the Legislature that she is considering line-item vetoes for budget allocations from the 2024 legislative session.

The potential vetoes primarily relate to a series of one-time funding allocations in Section 9 of Senate Bill 1530, pending the receipt of additional information regarding new housing production resulting from the direct appropriations and related infrastructure projects.

“The legislative intent of this funding is to support shovel-ready projects that are essential for new housing production,” Governor Kotek said. “After the legislative session, my office began a review of each of the projects to confirm project scope, cost, timeline, feasibility, and the nexus to housing production and affordability.

“Before making final decisions, I am giving cities and districts the opportunity to provide more information to my office to confirm whether these funding allocations will result in the production of new housing within an acceptable timeline. This is part of my ongoing commitment to transparency, accountability, and outcomes with public funds, including direct appropriations.”

The Governor’s Office has identified seven projects where more information is needed to confirm a direct nexus to specific housing development sites or projects, in order for the projects to be supported moving forward.

The following funding allocations, totaling $14 million, are being considered for potential line-item vetoes.

  • $3 million to the Oak Lodge Water Services Authority for wastewater treatment facility upgrades
  • $3 million to the City of Siletz for wastewater treatment plant upgrades
  • $3 million to the Tualatin Valley Water District for upgrades to the pump station on SW 189th Avenue in Beaverton
  • $1.5 million to the City of Butte Falls for wastewater treatment plant and lift station upgrades
  • $1.5 million to the City of Shady Cove for development of the city drinking water system
  • $1 million to the City of Creswell for wastewater treatment facility upgrades and connections to a regional treatment facility
  • $1 million to the City of Gold Hill for replacement of a water distribution main line and improvements and upgrades to water treatment facilities

Additionally, Governor Kotek provided notice of a potential line-item veto of Section 499 of Senate Bill 5701. The section of the bill allocated $2 million to the Old Town Community Association to support the Made in Old Town development project.

“I appreciate the intent of this project to help revitalize the Old Town neighborhood in Downtown Portland,” Governor Kotek said. “My office is awaiting more information from the development group about the viability of financing for the entire project before I make my decision.”

Governor Kotek will announce her final decision on these vetoes by April 17.

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