Oregon grant program proposed for small cities in distress

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The proposed grant program would be funded by proceeds from the Oregon Lottery.
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An Oregon lawmaker proposed a $1 million grant program to allow small cities struggling financially to maintain parks, libraries, museums and other essential community spaces.

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The grants and loans of up to $50,000 would be available to cities with less than 20,000 residents, that are facing short-term operational deficits. It would fall under the state's economic development agency, Business Oregon.

Oregon State Rep. Paul Evans, D-Monmouth, said he created the program after the city of Independence closed five parks, citing insufficient funding to maintain them. Two of those parks have since reopened after receiving a $30,000 grant from the nonprofit Friends of Community Parks.

"Small communities should not have to choose between balancing a budget and keeping their library doors open, maintaining their parks, or preserving their local history," Evans said.  "This proposal is about creating a responsible bridge — not a permanent subsidy — so communities can weather a difficult financial period without losing the institutions that help make them communities."

The proposal would be formally taken up by lawmakers when their session resumes in 2027.

The legislation would establish the Burns-Horton Protection Fund within Business Oregon. It is modeled after the state's existing infrastructure gap-financing programs.

Funding would be targeted to what Evans called three essential features of community life: municipal parks, public libraries and local historical museums.

The program would help eligible facilities maintain regular public operating hours, retain staff and avoid service closures while local governments work to implement sustainable, long-term budget solutions, he said.

"It's unfortunate that a program like this doesn't already exist at Business Oregon. Independence could have used it," Evans said. "This program will provide a critical emergency anchor for small communities, helping keep essential civic infrastructure open and accessible while local governments work to stabilize their budgets."

Under the draft framework, eligible cities would be able to apply for one-time loans to address temporary operational shortfalls. The funding would be designed to prevent severe service disruptions, preserve staffing and give communities the time needed to complete permanent budget solutions without abruptly reducing access to essential public services.

The financial assistance, likely funded by revenues from the Oregon Lottery, would provide a temporary solution to what Evans sees as a greater problem in the current property tax system resulting from ballot measures approved by voters in the 1990s that set limits on property taxes and how they're assessed.

Oregon sold $135.4 million in lottery bonds in May 2026 split into Series A (tax-exempt) at $59.5 million and Series B (federally taxable) at $75.9 million.


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Finance, investment and tax-related legislation State of Oregon Oregon Public finance Politics and policy
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