Salem lawmakers seek $7 million from state to cover police, fire costs
Jan 21, 2025
A bipartisan group of Salem lawmakers is again seeking money from the state to help pay for city emergency services and shore up a growing budget deficit.
A bill from Rep. Tom Andersen, a south Salem Democrat and former city councilor, would give Salem $7 million per year for the next two years.
The payment has been a longtime goal for the capital city, with city councilors and local leaders arguing Salem bears an unfair burden as the capital because of the high share of state-owned land that doesn’t pay property taxes, as well as the increased cost of emergency response to state buildings and institutions located in Salem.
Andersen introduced HB 2531 for the 2025 session after a similar effort failed last year. Rep. Kevin Mannix, R-Salem, and Sen. Deb Patterson, D-Salem, are the bill’s other chief sponsors.
Gov. Tina Kotek previously said she’d sign such a bill if it passed in the legislature.
Andersen’s new bill is a simpler version of a proposal last year. He previously tried to set up a system that would let other Oregon cities with large shares of state-owned land to get payments in compensation — an issue affecting Eugene, Corvallis, Monmouth and other cities with public universities.
But that became too complicated, he said, and the proposal failed to move during last year’s short session.
This year, he opted instead to pursue a payment just to Salem. His bill would set up a special “capital district” encompassing the Oregon Capitol and other state buildings nearby and seek payments from that district.
“Salem is unique among all cities in Oregon. It’s the state capital and it’s a full service city so people from all over the state come to the state capital and while they’re here we’re providing all services for them and they don’t pay anything,” he said.
A $7 million payment would roughly cut in half the city’s expected budget deficit for the coming year. Salem city councilors and budget committee members have just begun discussing the deficit.
City Manager Keith Stahley will release a budget proposal in the spring outlining cuts to city services, which the budget committee can then modify. The Salem City Council is also considering putting a levy for library and parks services on the May ballot and will discuss the option Tuesday evening.
Andersen said the $7 million figure is roughly what the state would pay in taxes on state-owned property within city limits.
Mannix served in the Legislature for over a decade starting in 1989. He recalled that legislators gave Salem $500,000 near the start of his tenure to pay for fire equipment, based on the argument that new state facilities under construction would burden the Salem fire department.
“The argument can be made that Salem is the one community that is disproportionately affected by the support services it provides to the state,” he said.
He believes that argument can win over legislators from other parts of Oregon.
“I think if we are clear about defining the services that are provided the traction will increase,” he said.
Mannix said he believes any city with a large share of state-owned land should get compensated, not just Salem, but signed on to Andersen’s bill because it’s a clear case of the larger issue and a large need for Salem.
“We can continue to make the case that the state, as a property owner in communities throughout the state, needs to take on some responsibility to help those local governments who are providing support service to those state facilities,” he said.
Andersen said he’s hopeful the bill will have more success with a longer session. Lawmakers are scheduled to meet through June.
“This is not a political or philosophic or idealogical bill,” Andersen said. “We’re trying to do what we can to help our constituents in the city of Salem.”
Contact reporter Rachel Alexander: [email protected] or 503-575-1241.
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