Governor considering vetoes of $16 million in infrastructure projects, including $3 million for Siletz

By JULIA SHUMWAY/Oregon Capital Chronicle

Gov. Tina Kotek warned Monday she’s considering vetoing about $16 million in funding for infrastructure and development projects approved by the Legislature — including $3 million to help upgrade the city of Siletz’s water treatment plant.

Kotek’s announcement, required by the state constitution, doesn’t guarantee she’ll veto the spending. Instead, she wants more information before making a final decision by April 17.

Seven of the projects Kotek is considering for a line-item veto are in Senate Bill 1530, one component of a $376 million housing package. Kotek said the bill was meant to support “shovel-ready” projects and she needed more evidence that seven infrastructure projects totaling $14 million will actually result in new homes being built soon.

“Before making final decisions, I am giving cities and districts the opportunity to provide more information to my office to confirm whether these funding allocations will result in the production of new housing within an acceptable timeline,” Kotek said in a statement. “This is part of my ongoing commitment to transparency, accountability, and outcomes with public funds, including direct appropriations.”

Those projects are:

• $3 million for the city of Siletz to upgrade its wastewater treatment plant;
• $3 million for the Oak Lodge Water Services Authority in northwest Clackamas County for wastewater treatment facility upgrades;
• $3 million to the Tualatin Valley Water District to upgrade a pump station on SW 189th Avenue in Beaverton;
• $1.5 million to the city of Butte Falls for wastewater treatment plant and lift station upgrades;
• $1.5 million to the city of Shady Cove to develop its city drinking water system;
• $1 million to the city of Creswell for wastewater treatment facility upgrades and connections to a regional treatment facility; and
• $1 million to the city of Gold Hill to replace a water distribution main line and upgrade water treatment facilities.

Lawmakers chose projects all over the state — from Madras to Monmouth to Medford — to directly give money for storm and wastewater projects. Rep. David Gomberg, D-Otis, who spearheaded the effort, told Oregon Public Broadcasting he was a “little bit surprised” by the governor’s veto notice.

“These projects are all housing, nothing but housing,” he said Monday. “We are working with the governor’s office to better understand her concerns and respond to them.”

Gomberg said each project was evaluated on: “Who is shovel ready? Who has made local investments of their own? What is the best rate of return?”

Kotek’s original housing package suggested creating a process where cities could apply to the state to tap money from a specific fund. In an effort to save money, lawmakers slashed through bureaucracy and instead gave directly to cities. That was one part of an overall $376 million housing package approved in the most recent legislative session.

Gomberg argued giving directly will mean more housing is built, faster.

“We suggested direct allocations because these projects are ready to go and need the help now,” he told OPB in an earlier interview. “We didn’t want them held up for nine months while someone has to go through an application process with a state agency.”

Siletz Mayor Willie Worman told The Oregonian/OregonLive he hadn’t received any further information as of Monday afternoon from Kotek’s office about what additional information the city should submit.

Kotek said she is also considering vetoing a $2 million appropriation in Senate Bill 5701 for Portland’s Old Town Association, which wanted seed money for a footwear and apparel manufacturing facility. Portland, the home of Nike and Adidas North America, has long been a hub for shoe design, but manufacturing mostly takes place in southeast Asia.

“I appreciate the intent of this project to help revitalize the Old Town neighborhood in downtown Portland,” Kotek said. “My office is awaiting more information from the development group about the viability of financing for the entire project before I make my decision.”

Kotek isn’t considering vetoes of any other bills or funding, a spokeswoman confirmed.

• Oregon Public Broadcasting and The Oregonian/OregonLive contributed to this report