Salem, Oregon – Salem is pushing for state assistance to address a growing public safety budget shortfall. City leaders are looking to secure state funding to help cover the costs of emergency services, including police, fire, and medical response, which have placed increasing financial pressure on the city’s budget.
The city’s predicament stems from its reliance on property taxes, but a significant portion of Salem’s land is exempt due to state ownership. These state-owned properties, including the Oregon State Hospital and the Oregon State Penitentiary, account for about 8% of the city’s land area. While these facilities do not contribute to local property taxes, they still require critical services such as emergency medical response, firefighting, and law enforcement.
In response, a group of bipartisan Salem lawmakers introduced House Bill 2531 (HB 2531) during the 2025 legislative session. The bill seeks to appropriate $14 million in state funds to help the city cover the costs of providing these vital services. If passed, the funding would alleviate some of the strain on the city’s budget, which has been further exacerbated by the tax-exempt status of state-owned land.
Rep. Tom Andersen (D-Salem), Rep. Kevin Mannix (R-Salem), and Sen. Deb Patterson (D-Salem) are the primary sponsors of HB 2531. Governor Tina Kotek has also voiced support for the proposal, signaling her willingness to sign a similar bill if it gains traction in the legislature. With this political backing, the bill has gained attention as a potential solution to the city’s ongoing financial challenges.
The city’s need for state assistance is not unique. Other states, including Washington, have implemented similar models to help cities with large amounts of tax-exempt state-owned land. Olympia, Washington, for example, receives annual state payments to cover the costs of services provided to state-run facilities. Salem hopes to follow a similar path to secure much-needed financial relief.
The bill is still in its early stages. As of now, it is awaiting its first reading in the Oregon House of Representatives, with no committee hearing scheduled yet. Its progress through the legislature will depend on various factors, including the session’s calendar and the state’s budget priorities.
If passed, HB 2531 could set a precedent for other cities in Oregon facing similar challenges due to the tax-exempt status of state properties. For Salem, the funding would provide a much-needed lifeline, allowing the city to continue providing essential public safety services while reducing the financial burden on local taxpayers.
For now, Salem officials and lawmakers will continue to advocate for the bill, hoping to secure the state’s support in the coming months. If successful, it could help establish a more sustainable model for funding local public safety services in cities with significant state-owned land.
