Gov. Tina Kotek talks Salem funding gap, housing crisis during Salem Chamber address

In her first public event of 2024, Oregon Gov. Tina Kotek outlined several of her hopes and plans for the new year, including pushing for the state to fund part of the gap in city public safety funding in Salem.

Kotek spoke at the Salem Area Chamber of Commerce's forum speaker series and touched on a variety of topics, including Measure 110 reforms, increasing housing production, Portland revitalization, and state financial help for Salem amid its budget shortfall.

Kotek made headlines before the November election for saying she would not be voting in favor of the employee-paid tax on Salem workers. The measure was resoundingly defeated.

City leaders are now looking to cut certain services to address the budget shortfall. Such cuts could include closing fire stations and the library, freezing hiring and eliminating homelessness services.

Kotek promised to work with city leaders to help maintain public safety and homelessness services. "Even if I vote no on that local measure, we do need to have a discussion with Salem and other cities about how they’re going to meet their local needs," she said last year.

She reiterated that vow on Monday.

"I want you to know that my goal is to support the city of Salem as best I can," Kotek said, adding Salem plays a valuable role as the state capital and home to many state agency buildings.

The biggest non-city-exempt property presence in Salem is the state of Oregon, with about $1.65 billion in real market value.

"As the state capital of Oregon, the concentration of state-owned properties requires services to be provided. These services are effectively subsidized by other taxpayers," city staff said in a September report on property taxes.

In some capital cities, including Olympia, Washington, the state government provides payment in lieu of taxes to help cover some of the services that would have been paid with property taxes. Salem has no such agreement.

"I think the state should have some role to help support essential services in Salem and I've said that to Mayor Hoy directly," Kotek said. "I think the question is how do you actually calculate it?"

She said she looks forward to legislative discussion on the issue and expects to see a proposal coming forward soon.

Kotek underscored that she and her wife, Aimee Kotek Wilson, chose to make Salem their full-time home when she was elected to the governor's office.

"Salem is an amazing place," the governor said, applauding the city's efforts to revitalize its downtown and to address homelessness with the navigation center, micro shelter villages and motel shelter projects.

After her first year in office and listening tour to all 36 Oregon counties, Kotek said the No. 1 issue Oregonians care about is housing and homelessness.

Therefore, the governor said she will be laser-focused in the upcoming short legislative session on housing and housing production.

Kotek also promised to prioritize behavioral health needs statewide and address gaps in Measure 110, like ensuring the funding is going to treatment and barring public use of dangerous drugs like fentanyl.

Other key areas, she said, will include Portland revitalization, working collaboratively with business groups and businesses to make the state welcoming for innovation and investment, and addressing education funding.

Her to-do list may seem daunting, but Kotek said she is optimistic about the year ahead.

"We can solve problems as Oregonians," she said.

For questions, comments and news tips, email reporter Whitney Woodworth at wmwoodworth@statesmanjournal.com, call 503-910-6616 or follow on Twitter at @wmwoodworth

This article originally appeared on Salem Statesman Journal: Gov. Tina Kotek talks Salem funding gap, housing crisis, homelessness