The Oregon Department of Transportation (ODOT) and the Association of Oregon Counties (AOC) staff made a presentation the AOC Transportation and Community Development steering committee and members of the AOC affiliate group, Oregon Association of County Surveyors and Engineers (OACES) on their plan and forecasts regarding the agency’s impending budget deficit beginning in Fiscal Year (FY) 2021. Based on conservative revenue forecasts from April, the agency is expecting to reach insolvency by 2024 with a $720 million deficit by 2027–specific to the State Highway Fund resources that are available to cover the costs of operating the agency. 

Many wonder how ODOT can face a shortfall of operating funding after the recent passage of the largest transportation investment package, House Bill 2017 (2017 Legislative Session) in the state’s history. For the agency, the reality is virtually all of the funding from HB 2017 and other recent transportation investment packages were directed by law to transportation system projects rather than to cover the agency’s operating costs and maintenance.