Update on the agency request budget for 2025-2027
Fariborz Pakseresht, ODHS Director
Oct. 2, 2024
I am pleased to share that Oregon Department of Human Services has completed its
2025-27 agency request budget (ARB). While the state faces a limited budget in the biennium ahead, the leaders, staff and partners who built this ARB have worked hard to find ways to sustain and improve existing services while advancing the Governor’s key goals for our state.
The ARB process has changed for 2025-27. In the past, agencies drafted ARBs based on the broad vision they and their partners developed for the biennium ahead, but these ARBs were not reflective of state budget limits. Governor Kotek has introduced earlier and closer collaboration between her office and agencies throughout the ARB development process, resulting in ARBs that focus more narrowly on essential priorities.
Because of projected limits to state resources, ODHS was asked to keep its ARB funding requests (also called policy option packages or POPs) within a one percent growth limit of our 2023-25 General Fund budget. To make the best use of limited resources, our POPs prioritize:
- Safety – Ensuring client and worker safety through centralized contract administration, enhanced oversight and facilities improvements.
- Service equity – Improving government-to-government relationships and ensuring people can access needed services at the Tribal and local levels.
- Stewardship – Building contracting and oversight capacity to ensure optimal use of state and federal investments.
ODHS also seeks to advance the Governor’s housing and behavioral health initiatives through four key investment areas:
- Maintaining last biennium’s one-time investment for ODHS’ Youth Experiencing Homelessness Program (YEHP) to ensure more young people can access needed supports to move toward permanent housing stability.
- Expanding and strengthening Oregon’s systems for preventing youth homelessness and increasing young people’s long-term housing stability.
- Improving the financial stability of youth leaving foster care, helping them avoid houselessness and experience more successful transitions into adulthood.
- Reducing barriers to long term services and supports for people with mental health or substance use conditions served through ODHS Aging and People with Disabilities (APD).
Following submission of its ARB, ODHS will release a study of direct care staff wages and rates for home- and community-based services providers. The study, conducted per a House Bill 5026 (2023) budget note requirement, was designed to inform legislative consideration of provider rate adjustments for home and community based services providers. We look forward to updating our provider community partners with any developments in this area.
With the publication of the ARB comes the opportunity for partners to begin engaging with legislators and the Governor’s Office on specific ODHS POPs. In that vein, we invite you to participate in our ARB survey, which is designed to gather feedback we can share with the Governor’s Office as it considers agency requests.
While we must acknowledge the realities of our limited budget landscape – and potentially accept some difficult tradeoffs on the way to a balanced state budget in 2025 – we also remain steadfast in our commitment to building a future where everyone in Oregon, regardless of who they are or where they come from, has the opportunity to thrive. I look forward to your continued partnership as we continue to make strides in this essential work.
Sincerely,
Fariborz Pakseresht