Gov. Tina Kotek wants to make Oregon State Hospital a standalone agency, separating the psychiatric institution from the Oregon Health Authority. The newly reelected governor included the proposal among her priorities for the coming legislative session in an announcement last week. The hospital accounts for 2,995 of OHA’s 5,997 positions in the current budget cycle, making the proposed separation a substantial reduction in the agency’s size.
The hospital, whose main campus is in Salem, dates to the 19th century and now receives most of its patients through the criminal justice system. Several boards and government bodies have overseen it, including the Department of Human Services. It moved to OHA shortly after that agency’s creation in 2009. Supporters of separation argue that operating a hospital fits poorly within an agency focused mainly on health policy regulation. Kotek’s office says the existing arrangement limits focus, capacity and accountability. Chris Bouneff of NAMI Oregon supports a governance change, saying OHA’s director effectively serves as the hospital’s sole board member.
Meanwhile, House Speaker Julie Fahey, a West Eugene Democrat who has led the chamber since 2024, faces potential challenges following legislative setbacks, including two years without passage of a comprehensive transportation funding package. Rep. Daniel Nguyen of Lake Oswego confirmed to Willamette Week that he intends to seek the speakership. He called for stronger leadership and a broad public discussion about modernizing Oregon’s tax structure to support shared priorities.
Majority Leader Ben Bowman of Tigard and Rep. Thuy Tran of Northeast Portland are also possible contenders, according to reporting first published in former lawmaker and lobbyist Rick Metsger’s newsletter. House Democrats will vote on leadership at their biennial retreat in two weeks, ahead of the January start of the 2027 session. The party gained two seats in this month’s election, bringing its total to 39 of the chamber’s 60 seats. Kotek declined to comment when recently asked whether Fahey should remain speaker.
In Portland, the union representing roughly 60 Prosper Portland employees wants an independent investigation into three contracts awarded by executive director Cornell Wesley during his first year. The agreements, worth a combined $456,000, went to two longtime college friends without competitive bidding or board consideration. AFSCME Local 3769 has asked Mayor Keith Wilson and the agency’s commissioners to arrange the investigation.
An internal review by employees reporting directly to Wesley found that he acted properly, but the union says outside scrutiny is necessary to rebuild public trust. Wilson said he would honor the request after hearing directly from the union. Board chair Tavo Cruz said he had not received direct contact and would not say whether commissioners would hire an investigator.
Portland Public Schools is also considering how potential elementary school closures would affect seismic retrofit funding. Rose City Park and Beach would close under Scenario A, while Beach also appears in Scenario B. Both received retrofit allocations through the 2025 school bond. KATU reported projected costs of $40 million for Rose City Park and $10 million for Beach. Parent group Safe Structures PPS, which advocated $100 million in bond funding for seismic work, has raised questions.
At a Nov. 9 facilities meeting, Holmes structural engineer Jennifer Eggers said reallocating both schools’ seismic funds could support upgrades at nine elementary and middle school buildings. If only Beach closes under Scenario B, the money would go to Duniway and Rieke elementary schools. PPS also plans to seek state funding for upgrades to two sections of Rieke. Eggers said the choices prioritize campuses receiving schools and building elements with the greatest risk within the available budget.
