SALEM, Ore.- Legislation addressing the Oregon Department of Transportation’s (ODOT) almost $300 million budget shortfall will allow the agency to avoid more layoffs and service cuts.
According to ODOT, highway maintenance crews will remain on the job, safety and storm response operations will continue, and DMV offices will remain open following passage of the new budget.
“This legislative action provides important short-term stability for Oregon’s transportation system,” said Interim Director Lisa Sumption. “It allows us to avoid deep reductions while continuing to focus on providing the services Oregonians rely on.
The legislation redirects $218 million from existing state transportation funds to support ODOT operations and maintenance, impacting programs such as Safe Routes to School and Connect Oregon, which could see delayed or reduced grant funding, according to ODOT.
The budget approved by the Oregon State Legislature at the end of its 35-day session on March 6 also reduces ODOT’s authorized spending levels by nearly $80 million.
ODOT currently has about 700 vacant positions statewide, with over 350 of those vacancies the result of employees leaving due to the financial uncertainty the department has faced since July.
With a budget in place, ODOT plans to begin hiring for critical vacancies immediately, however, about 130 positions will remain unfilled.
“We ran a bipartisan process to create a budget that provides short-term certainty to ODOT,” said Sen. Kate Lieber (D-SW Portland and Beaverton), co-chair of the Joint Committee on Ways and Means, of the rebalanced budget. “Redirecting funds, holding positions open, and deferring maintenance are manageable in the short-term, but are not a long-term solution for this essential state agency.”
While the budget approved by the legislature stabilizes operations for the remainder of the current budget cycle, it does not address the funding issues concerning Oregon’s State Highway Fund, which supports ODOT and cities and counties across the state.
Oregon’s lawmakers are expected to revisit transportation funding during the 2027 legislative session.
