Kotek Warns of ODOT Layoffs as Oregon Faces Massive Funding Gap and 1,000 Aging Bridges
Oregon Governor Tina Kotek yesterday warned that hundreds of people will be laid off this spring from the state’s Department of Transportation (ODOT) if the wrong decisions are made in the coming weeks.
Addressing the annual meeting of the Oregon Transportation Forum, Kotek stated that immediate actions were necessary to stabilize core services provided by ODOT.
“The decisions we make in the coming weeks will determine whether Oregon’s transportation system continues to decline, or whether we can restore certainty in the needed essential services that Oregonians rely on.”
Labeling the necessary actions as ‘redirect, repeal, and rebuild,’ the Governor conceded that the decisions will be difficult to make, and result in trade-offs and consequences such as laying off hundreds of ODOT workers.
Redirect to Retain Workers and Solve $242 Million Budget Shortfall
Kotek says existing transportation funding must be redirected to core operations and maintenance, and urged lawmakers to make those decisions during the February session. These actions are necessary if ODOT workers are to retain their jobs.
The Governor pointed out that nearly all transportation programs will have to be reallocated because budget restraints prohibit the funding necessary to solve ODOT’s $242 million budget shortfall.
Repeal the Transportation Funding Package
Kotek says that Oregon’s contentiousHouse Bill 3991, opposed by Republicans during both the last legislative session and special session when lawmakers were recalled by the governor, must be repealed to avoid ODOT having to absorb implementation costs without the necessary funds.
| Change | Timing in HB 3991 | Status now |
|---|---|---|
| State gas tax increase | Plus 6 cents per gallon starting Jan 1 2026 | Paused pending the referral process and a statewide vote |
| Statewide Transit Tax rate | Planned to rise from .001 to .002 on Jan 1 2026 | Stays at .001 pending election results |
| Vehicle registration and title fee increases | Planned increases beginning Jan 1 2026 | Paused pending the referral process and a statewide vote |
| 40 plus mpg supplemental registration fee | Plus 30 dollars starting Dec 31 2025 | Still scheduled to take effect |
| Mandatory per mile road usage charge for existing EVs | Begins July 1 2027 | Still scheduled to take effect |
The bill would have raised $4.3 billion to fund maintenance and construction projects to improve Oregon’s dilapidated transportation network. However, Republicans opposed the bill as an unnecessary tax burden on residents. The bill would have increased the price of gas, registration fees, and transit payroll tax.
Rebuild a New ODOT Funding and Investment Package
The governor is calling for a new, bipartisan funding and investment package to be formulated by the 2027 legislative session.
More than 1,000 Aging Oregon Bridges Need to be Rebuilt
More than 1,000 interstate bridges must be rebuilt. However, based on current funding, only three bridges can be replaced every year, a tempo at which an Oregon bridge will have to remain in service for over 900 years.
Source: ODOT 2024 Bridge Condition Report and summary bulletin
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This stark reality is revealed in a report by ODOT on the condition of Oregon’s deteriorating bridges, vital links in the state’s aging transportation network.
According to the 2024 report, the normal lifespan of a bridge is between 75 and 100 years, and 60% of the state’s bridges were built before 1973.
The report states that the transportation infrastructure is deteriorating, particularly bridges and pavements, with ODOT facing an increasing backlog of bridges that need preservation.