Oregon transportation leaders say they may have to cut 1,000 jobs if legislature doesn’t find them more money

Officials with the Oregon Department of Transportation say they will have to slash more than 1,000 jobs if lawmakers don’t address the agency’s financial woes during next year’s legislative session.

Transportation leaders painted a grim picture of what faces the state’s road system during a Thursday meeting with the Oregon Transportation Commission, during which commissioners “reluctantly” approved ODOT’s budget request for 2025-2027.

Among the budget’s most glaring problems, according to ODOT: a projected revenue shortfall of more than $354 million in 2025-2027, requiring a reduction of more than $101 million in services and supplies, such as striping lanes and deicing roads.

ODOT’s budget also calls for cutting the size of ODOT’s workforce by almost a fifth – from 4,939 to 3,923.

“I hope this doesn’t come to pass,” said Lee Beyer, the commission’s vice chair. “It shouldn’t. I don’t think this is a budget … that the public wants. And I believe that, if they understand it, they will urge the legislature to take action to make sure we don’t end up with a budget that looks like this.”

Thursday’s meeting was the latest effort by ODOT to raise awareness about its ongoing financial trouble, precipitated in part by surging road costs from inflation and dwindling revenue from gas taxes, which is largely a result of fewer people driving and more using electric vehicles.

Lawmakers next year are expected to weigh a package that could revamp how the state funds its ailing transportation system. The changes could include new taxes or fees that could raise hundreds of millions of dollars to fund basic maintenance and new projects.

This summer, state representatives and senators have been touring the state, asking Oregonians what they want to see from the package. Overhauling the state’s transportation system stands to be one of the biggest political obstacles facing policymakers in next year’s legislative session.

ODOT says Oregon needs to spend an extra $1.8 billion annually — and more for big-ticket projects promised from the state’s last transportation package passed in 2017 — to avoid a wide range of problems that could impact people traveling just about anywhere in Oregon. The potential results include extended road closures, more trash and potholes, and worse winter driving conditions.

In rural areas, for example, cutting staff could force the state to consolidate crews, close maintenance stations and move staff to centralized locations, increasing response times, said Mac Lynde, ODOT’s delivery and operations division administrator.

“In our rural settings where it may take a few minutes to an hour to show up to a crash, it may take hours in that situation,” Lynde said.

Staff reductions would also make it harder to address extreme weather events, Lynde said. In the winter, that could mean snow plows can’t run at night, impacting school bus schedules. During wildfire season, it could mean the state doesn’t have the staff to open and close freeways daily.

And the agency itself could face further problems improving technology, handling employee relations and repairing aging facilities.

“When a roof starts leaking, we’ll put a bucket underneath it,” said Travis Brouwer, ODOT’s assistant director for revenue, finance and compliance. “That’s probably the best we’re going to be able to do half the time.”

Still, officials voiced confidence that state policymakers are invested in addressing the problem.

“I, too, am cautiously optimistic that, with the support of the legislature and the governor and the people of Oregon, we’ll have the funds that we need to serve the state in a way that they deserve and that we can be proud of,” said Transportation Commissioner Sharon Smith.

ODOT will submit its budget to the Department of Administrative Services later this month. Then, Gov. Tina Kotek will work with both agencies to develop her budget for executive agencies in December. ODOT will finally present its budget to the Ways & Means Committee next spring.