policy
Oregon Municipal Allocation Bill Revises Eugene Infrastructure Grants Relative to Portland and Salem
Eugene city budgets for roads and parks will use a new state formula that produces different grant totals than those calculated for Portland and Salem beginning in the 2027 fiscal year.
How we reported this
The Oregon Legislature enacted the Municipal Allocation Bill during its 2026 session, changing the formula used to distribute state grants for city infrastructure projects. The measure applies to all Oregon municipalities and recalculates shares for Eugene using 2025 population counts and assessed property values instead of 2020 data.
State revenue collections from the corporate activity tax fell short of earlier projections during the 2025-2027 biennium, prompting the update. The Department of Administrative Services released preliminary allocation tables in late June 2026 that list the revised amounts each city will receive.
Daily Effects for Eugene Residents
Eugene is projected to receive $3.2 million less annually for street and sidewalk work under the revised formula. City crews have used prior grants to resurface sections of 18th Avenue and improve drainage near the University of Oregon campus. Residents who drive those routes daily may encounter longer periods between repairs once the lower amount takes effect.
Park maintenance budgets tied to the same grants will also shift. The city has applied previous allocations to trail upkeep at Alton Baker Park and playground equipment replacement at Washington Park. Local property tax rates could rise if the city council chooses to maintain current service levels rather than reduce hours or projects.
Grant Totals Compared With Other Cities
Portland receives an increase of $12 million under the legislation because its population base and commercial property assessments produce a larger weighted total. Salem receives an additional $1.9 million, reflecting its role as the state capital and associated state facility density. The legislation states that grants are calculated at a base rate of $47 per resident adjusted by local assessed value per capita, producing the different outcomes across Lane, Multnomah and Marion counties.
The Oregon Department of Administrative Services must publish final allocation tables by September 15, 2026. Eugene city staff will incorporate the numbers into the 2027 budget proposal that goes before the city council in November.