Jeff McDonald//March 10, 2014//
A flurry of bills – including many affecting construction – were passed by the Oregon Legislature on Friday as the 2014 short session wrapped up.
However, state leaders announced plans to shelve the $2.8 billion Columbia River Crossing project. Gov. John Kitzhaber and House Speaker Tina Kotek had pushed hard for replacing the Interstate Bridge, but doing so would have cost the state $450 million in bonding authority. Oregon also would not have received help from Washington state.
With the death of the CRC, construction industry stakeholders hope that some of that bonding capacity will be shifted to other projects in the state’s $30 billion infrastructure backlog, said Mike Salsgiver, executive director for Associated General Contractors’ Oregon-Columbia chapter.
“What basically happens is the $450 million impact to the state’s bonding capacity will not happen in the short term,” Salsgiver said. “This means we can start discussion of other projects that can be funded.”
While bemoaning the loss of a project that would have improved the state’s transportation system and created thousands of construction jobs, industry leaders – some more than others – were pleased with the results of the short session.
• House Bill 5201 will provide $2 million more for technical education training programs. Construction industry advocates say that will aid future recruitment efforts.
“This was the focus of my year,” said Steve Malany, president of AGC’s Oregon-Columbia chapter. “It’s great news. The Legislature sees the importance of getting this back into the schools.”
The Career and Technical Education Revitalization grants will supplement $7.5 million that was allocated in the 2013 legislative session. Twenty-four programs around the state received funding last year, but 62 applied, Malany said.
“This will help bridge that gap,” he said.
• Senate Bill 5703 gives Oregon Health & Science University $198 million in bonding authority to pursue creation of a cancer research center. The project, which is contingent upon the school’s ability to raise $300 million more by February 2016, would include construction of two buildings at the South Waterfront campus.
Portland-based consultant ECONorthwest calculated that the two-year project would create 3,605 construction jobs and $393 million in personal income.
• Portland State University will likely seek money in 2015, spokesman Scott Gallagher said, after its $17 million funding request died in the joint Ways and Means subcommittee on capital construction.
The money would have been used to help pay for a $20 million renovation of PSU’s Extended Studies Building to suit the Graduate School of Education. The GSE will be displaced to accommodate the $60 million expansion of the School of Business Administration in an adjacent building. PSU last year received $40 million in state funding for the School of Business Administration. Construction is scheduled to begin in January 2015.
“We have to find accommodations for them,” Gallagher said. “We will likely lease some space for a couple of years. The goal is to find a permanent home.”
• Senate Bill 5703 provided a total of $33.3 million for five Oregon University System campus projects. Three were considered critical for life and safety – $21.3 million for deferred maintenance at Southern Oregon University‘s McNeal Hall, $2.1 million for repairs at University of Oregon utility tunnels and $1.1 million for repairs at Oregon Institute of Technology underground tunnels. Also, $5 million went to Western Oregon University for its purchase of the Oregon Military Academic Building, and $3.8 million went to Oregon State University for its Cascades Academic Building in Bend.
“We’re grateful to the Legislature for advancing these important facilities projects,” interim OUS Chancellor Melody Rose stated. “Our first concern is for the safety and access of our students and our campus communities across the state. The bulk of these funds address critical needs that can’t wait until next year’s legislative session but need resolution now. So we appreciate that recognition by our state leaders.”
SB 5703 also included $4 million in general fund bonding capacity for the Jefferson County Courthouse and $2.7 million in lottery fund bonding capacity for the Cornelius Public Library.