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Wildfire Funding Framework Starts to Emerge This Session

Oregon has struggled for years to identify stable wildfire funding solutions.  This was highlighted when Governor Kotek called for a special legislative session on December 12.  The special session authorized the payment of $218 million to private contractors involved in the suppression efforts covering nearly two million acres of burned acreage during the 2024 fire season.

Since the summer of 2024, a group comprised of roughly 35 interests has been meeting to identify gap funding solutions for wildfire fighting needs and funding for resilience programs focused on defensible space and home hardening. This group formally produced a series of recommendations for the Legislature to consider. As of this week, multiple funding choices are being advanced for legislative discussion during the remainder of this session. These funding considerations include the following legislative proposals:

HB 3940 - Funding Package Options 

  • Places a (.05) surcharge on sales of beverage containers for purposes of wildfire prevention and response.  
  • Directs insurance retaliatory tax revenue to wildfire prevention and response. Transfers 0.5% of general fund appropriations per biennium to a fund for wildfire prevention and response.  
  • Transfers 50% of the amount held in the Oregon Rainy Day Fund to a fund for wildfire prevention and response.  
  • Makes certain changes related to the forest products harvest tax, minimum assessments and surcharges, zones for fire protection in certain areas, and the formation of rural fire protection districts.  

SJR 11 – Lottery Fund Referral  

This amendment to the Oregon Constitution requires a percentage of lottery revenues to be expended on wildfire prevention, suppression, or management.  If the Legislature passes this SJR, Oregonians will get a chance to vote on this proposal modifying the use of state lottery funds.

SB 1177 – Redirect the Kicker for Funding 

Legislation would take the current kicker level of $1.8 billion and establish a permanent funding source from the annual earnings. Estimated to be $144 million/biennium. 

Contact: Jim McCauley, Legislative Director - jmccauley@orcities.org

Last Updated 3/21/25

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