OK, I'm going to try to clear up some of this misinformation,
The proposed statewide system is called the OWIN (Oregon Wireless Interoperability Network).
The agency responsible for developng it is the Oregon State Interoperability Executive Council or SIEC which was created in 2002 by exective order of Gov. Kitzhaber.
Their Mission Statement is:
"The mission of the Oregon State Interoperability Executive Council is to develop recommendations for policy and guidelines, identify technology and standards, and coordinate intergovernmental resources to facilitate statewide wireless communications interoperability with emphasis on public safety."
Organization:
"The Oregon State Interoperability Executive Council (SIEC), created by Governor’s Executive Order 02-17 in 2002, is charged with improving and developing interoperable public safety communication systems in Oregon. Through the Governor, its advisory recommendations will form public safety communication policy in Oregon.
Interoperability is an obscure label for the simple idea of providing for the ability for public safety officers and first responders to talk to one another, efficiently, timely, and effectively. The National Task Force on Interoperability defines interoperability as “…the ability of public safety agencies to talk to one another via radio communications systems – to exchange voice and/or data with one another on demand in real time, when needed.”
Improving public safety communication systems is important to saving lives and protecting property. That is why the work of the SIEC is vital to the citizens of Oregon.
The 17 voting members of the SIEC represent a unique partnership of state and local public safety organizations that have a strong interest in the creation and operation of public safety communication systems. All of these partners are working hard to deliver tangible results because they understand that weaknesses in the current communication systems compromise their individual and collective ability to protect the public, and they are committed to changing this situation.
The SIEC involves counties, cities, special districts, fire and law enforcement associations, 9-1-1 public safety telecommunciations, state agencies, the Governor’s Public Safety Advisor, and other people who are working together to create a blueprint for future communications coordination. It is the ability of these different groups to work together that will allow the full and successful development of wireless radio interoperability in Oregon.
This work will have two major benefits for Oregonians: 1) better service from all public safety agencies; and, 2) gains in efficiencies that will reduce redundant expenditures of taxpayer dollars. It will also benefit all of Oregon’s public safety professionals that may be called upon to put their lives on the line to protect the public. These primary benefits are the driving force for the work of the SIEC, and for its commitment to take action on priority issues for which they are responsible."
Some of the features of the statewide system will be:
"The architecture of the communication platform shall include the following elements
connected within a virtual private network:
1. Statewide basic infrastructure; (additional towers, microwave backbone)
2. Emergency communications virtual private network;
3. Statewide VHF P25 system;
4. Interoperability channel(s) designation(s) for VHF, UHF, 700 MHz, 800MHz;
5. Federal IWN system;
6. 700 MHz Data Network; and,
7. Public safety communications access for county, city, federal, tribal,
metropolitan and district communication needs.
8. The network basic infrastructure and communications equipment includes the
state operation of the statewide VPN."
Hopefully this helps clear up some of your questions, if you want more info the SIEC maintains a nice website at
http://www.oregon.gov/SIEC/index.shtml
The latest info I have which is what the oregonian article is based on is that the system will be VHF narrowband P25 trunked. The reason for the high cost is 1. The state lacks existing adequate towers and other site infrastructure, 2. the state also lacks an appropriate microwave backbone, 3. they want to cover a large amount of the state, and 4. The geography of oregon, especially the coast range, require a lot more towers than typical "flat" terrain. I know someone used Utah as a comparison but remember that Utah's, system covers only 85% of the population and only one third of it's geography.