How might Oregon spend $1 billion in borrowed money? Read the Legislature's project list

SALEM -- Gov. Kate Brown will apparently fall short of the $100 million she wanted to borrow for an ambitious plan that would put Oregon on the vanguard of housing policy by building thousands of its own affordable units.

A copy of the Legislature's all-but-final plan for which projects deserve a taste of more than $1 billion in borrowed money over the next two years shows Brown in line for sizable haul that's still less than requested: $62.5 million for housing needs overall, with $40 million set aside for the new affordable units her office was pitching.

The governor also joined Senate President Peter Courtney, D-Salem, in backing a $20 million request for housing dedicated to people with mental illness along with an additional $2.5 million for the Oregon Housing Alliance to help prevent existing affordable housing from turning market-rate.

But Brown's not the only top leader who didn't get everything she wanted in the still-confidential list, which The Oregonian/OregonLive obtained late Wednesday before its release as part of long-awaited legislation sometime this week.

As first reported earlier Wednesday, a controversial plan to start work on seismic retrofits for the Oregon Capitol -- seen as a legacy item for longtime Senate President Peter Courtney, D-Salem -- was left off altogether.

Sources say both decisions were among major sticking points in weeks of back-and-forth talks between Courtney, House Speaker Tina Kotek, D-Portland, and other legislative leaders working to wrap up the state's budget and go home before the July 4 holiday.

Instead, the delay in reaching a deal on the project list tied up related budget discussions, leaving floor sessions over the weekend looking more and more likely.

The list, which determines how the state will borrow money backed by its general fund and lottery revenues, could still change, even after it's released publicly -- and maybe even before lawmakers give it their blessing. But it's clear some groups are in line to fare particularly well.

* Oregon Health & Science University -- which recently announced a successful $500 million fundraising push for cancer research that won it a matching grant from the Knight Foundation -- is slotted to receive $200 million previously promised from the state. Courtney has championed that research.

* Another priority for Courtney, seismic retrofits for schools around the state, is listed as receiving $175 million, with $30 million more set aside for emergency buildings such as police and fire stations. Courtney proposed the schools money after floating the Capitol project and had hoped to find money for both.

Republicans made the case that any money spent on the Capitol was money that wasn't also being spent on schools. Democrats, particularly in the House, worried that message would hurt them during next year's elections and reportedly rode those fears to kill the Capitol project this session.

* Community colleges and the state's universities are in line for more than $200 million that would help pay for new buildings and facilities -- technology centers, for example -- and assorted renovations.

* Multnomah County is looking at $17.4 million for plans to replace its old, quake-prone courthouse. The county eventually hopes to raise $200 million but sought a smaller amount to help pay for design work.

* Lottery bonds, which the state can use more flexibly than bonds backed by its overall operating revenues, have been set aside for smaller projects around the state, including in swing districts where Democrats running for re-election could use them as campaign selling points.

But some reward arts and cultural organizations, including the Oregon Shakespeare Festival ($2 million), the Portland Japanese Garden ($1.5 million), Oregon Public Broadcasting ($600,000) and the Aurora Colony Museum ($400,000).

Brown did appear to get one other wish, though: The list includes tens of millions for water infrastructure projects that the governor also put high on her list of needs.

Read the whole list below, and stay tuned for more coverage tomorrow.

The story has been updated to clarify that money for OHSU had been promised previously.

-- Denis C. Theriault

503-221-8430; @TheriaultPDX

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