At the May 12 meeting of the Oregon Transportation Commission (OTC) proposed budget illuminated further disinvestment and deficit in both Oregon Department of Transportation (ODOT) and local government Operations and Maintenance Budgets (OM).
The Association of Oregon Counties (AOC) and affiliate organization, Oregon Association of County Engineers and Surveyors (OACES) submitted a letter to the OTC detailing concerns and requesting new revenue channels to support OM budgets.
In their comment letter to the OTC, AOC Road Program Director, Brian Worley and OACES President-Elect Tom Fellows noted, “Current estimates show in 2026, ODOT will exhaust the State Highway Fund’s balance with an estimated deficit of $98 million growing to $718 million by 2029.”
While the State Highway Fund revenues have not kept pace with increased cost of transportation maintenance and needs generally, due, in part, to increased fuel efficiency and inflation, the gap of OM needs versus actual investment continues to widen.
OM budgets are used for support of existing state and local infrastructure, and while Oregon saw a significant increase in investment through the state’s Keep Oregon Moving Act of 2017, cost has still outpaced need. Even with this historic investment, the current level of funding will not address the existing chip sealing, repair, and replacement projects identified for the county road system, nor the 65.7 percent of Oregon’s county bridges in “fair” or “poor” condition.
Oregon counties are responsible for the largest share of Oregon’s road system (41 percent), with over 32,000 miles of road and over 3,400 bridges.
The federal Infrastructure Investment and Jobs Act (IIJA) of 2021, provided historic investments in county roads, bridges, and state infrastructure, with over $550 billion in new spending in the nation’s infrastructure – and a nearly $1.2 billion investment directly to Oregon. Worley and Fellows expressed gratitude for the broad investments of the package for Oregon’s transportation system, but cautioned that the current plan to support state-matched requirements for federal funds further exacerbates the issue. Under the current budget, more resources are diverted from OM budgets – essential resources to support Oregon’s existing transportation infrastructure. By increasing staffing costs for delivering federally funded projects this is expected to have adverse impacts to State Funded Local Projects and the State Fund Exchange programs.
“Maintaining our existing road system is critical for everyday needs of Oregonians – for getting to and from work, school, childcare, and for commerce. We look forward to working with the state for long-term solutions to supporting our state’s infrastructure system,” said Worley.
Worley anticipates significant work with ODOT, the OTC, and the Legislature during the 2023 Legislative Session to sustain the State Highway Fund and provide critical investment in local and state OM budgets.
Contributed by: Megan Chuinard | Public Affairs Associate