Dear partners,

Earlier this week, Governor Kotek released her recommended budget for the 2025-27 biennium, outlining funding for all state agencies and reflecting her commitment to addressing Oregonians’ top priorities, including reducing homelessness and ensuring the availability of behavioral health services. The Governor’s proposed budget also recognizes the essential role Oregon Department of Human Services (ODHS) plays in serving the people of our state, and it prioritizes the fundamental investments we need to equitably deliver services, ensure the safety of our clients and staff, and effectively administer provider contracts and federal programs.

The Governor’s recommended budget (GRB) for ODHS amounts to $22.5 billion, including $7.4 billion from the state’s General Fund and support for 11,413 staff positions. This represents a 14% increase in total funds and a 21% increase in General Fund resources compared to the 2023-25 Legislatively Approved Budget (LAB) – increases that will be critical as we continue to serve growing numbers of people in our state.

Highlights of GRB investments include:

• Staff and other resources to strengthen our capacity for regulatory oversight, ensuring people served through ODHS contracts remain safe and receive the care they need.
• Investments to support youth, including resources to maintain the Youth Experiencing Homelessness Program (YEHP), maximize access to Supplemental Security Income for young people exiting foster care, and reduce the need for the temporary lodging of youth involved in the child welfare system.
• Funds for programs serving older adults and people with physical and intellectual/developmental disabilities, including resources to implement the Centers for Medicare & Medicaid Services (CMS) new access rule, ensure access to behavioral health services, and strengthen partnerships with the Nine Federally Recognized Tribes in Oregon.
• Investments to ensure timely eligibility determinations through technology improvements and a simplified SNAP application process for older adults.
• Resources to support the human services workforce, ensuring greater safety in our buildings around the state as well as rate adjustments for adult foster home and independent living program (ILP) providers.
• Investments in Oregon’s resilience, supporting information technology (IT) systems to aid in emergency feeding, sheltering, and case management, as well as ongoing funding for water delivery to areas impacted by drought or contamination.

While not part of ODHS’ proposed budget, the GRB also contains several key investments that would directly benefit the human services workforce and the people we serve: For example, a $75 million special purpose appropriation would support better wages for Personal Support Workers and Home Care Workers serving older adults and people with intellectual, developmental, or physical disabilities. Additionally, the GRB includes continued funding for the Healthier Oregon Program, which expands long-term services and supports for individuals regardless of immigration status.

Importantly, the GRB also reduces funding for ODHS’ Stabilization and Crisis Unit (SACU). SACU was established in 2012 to provide short-term, intensive 24-hour residential services and supports to stabilize people with intellectual/developmental disabilities experiencing crises, with the goal of helping them return to living in their communities. Since that time, the unit has faced deepening risks, including rising costs alongside resident lengths of stay that are often years beyond the 90-day period SACU was designed to support. The GRB’s proposed reduction signals an opportunity to collaborate with community members, providers, and our legislative partners to determine a more sustainable future for SACU.

The next step in the budget process will involve the legislature, whose development of the 2025-27 Legislatively Adopted Budget will be deeply informed by the GRB. We look forward to updating you with key developments along the way.

While the state anticipates a limited budget environment in the biennium ahead, the GRB lays out a plan to ensure ODHS can continue delivering on our core mission. With these resources, we can meet the needs of our communities more effectively while prioritizing the well-being of the people we serve and the workforce that makes our services possible. Thank you for your continued partnership in this work.

With gratitude,

Fariborz Pakseresht

Director, Oregon Department of Human Services