Significant aid is on the way to the Oregon transportation system. Under the most recent federal COVID-19 relief package, Oregon is expected to receive $124 million in funding to help the state and local governments that have lost revenue as a result of the pandemic and recession. The package contains additional funding for transit as well.
Current projections highlight a loss of $225 million in State Highway Funds through the end of the fiscal year and a total of $370 million through fiscal year 2025 due to lasting impacts of the pandemic, recession, and recovery.
The Oregon Transportation Commission (OTC) convened on January 21, to discuss a myriad of transportation policy and funding issues, including Oregon Department of Transportation (ODOT) recommendations for spending those new federal relief funds.
The impact of decreased travel and drop in the State Highway Fund revenues throughout the pandemic has hit Oregon’s 36 counties hard. During the last year, revenues for counties have been reduced by $36 million. Current declines have led to projects put on hold, reduced hours, and some layoffs. “Even before the pandemic, transportation costs were rising faster than revenue, leading to a long-term decline for ODOT, cities, and counties,” said Association of Oregon Counties (AOC) County Road Program Manager, Brian Worley of the loss of revenue. See FY 2020 – 2021 COVID Revenue Estimates, January 19, 2021, for individual county lost revenue estimates to date.
In his testimony before the commission, Worley called out the important role counties play in maintenance, preservation, and building of infrastructure. He noted cities and counties experienced 45 percent of the loss per the State Highway Fund distribution formula (ODOT 50 percent; counties, 30 percent; cities 20 percent). Unfortunately, under the current ODOT proposal, less than 25 percent of the federal relief funds are sub-allocated to local government partners. “We appreciate ODOT’s initial proposal and goal to support local government relief for those who have lost significant revenue.” Worley noted however, that, “If Congress’ intent and the (ODOT) state goal is to provide equitable relief for lost revenue, the current proposal falls short for local government.”
Worley also called out the local government’s partnership and willingness to step up to the plate and support ODOT through other funding issues, even during this challenging time, noting a $5+ million gap in ODOT’s operational funds that local governments were willing to help bridge beginning in 2022. “Local governments are your partners. We are here to help you reach OTC and ODOT strategic goals,” said Worley.
Worley closed his comments by reminding the commission that investment in counties results in efficiency and mutual gain for all partners, “Direct support to local government not only supports needed operations and maintenance, but also supports strategic and local community priorities in the most flexible and efficient way.”
AOC and its affiliate, Oregon Association of County Engineers and Surveyors (OACES), and the League of Oregon Cities, have provided written testimony to the commission to urge a more equitable distribution of federal relief funds and recognize the critical role of local government in transportation for the state.
Public comment on the proposal will be accepted through March 11 when it is expected for ODOT to present a final proposal to the commission for approval. Comments can be sent to: OTCAdmin@odot.state.or.us.
For questions, please contact Brian Worley.
Contributed by: Megan Chuinard | Public Affairs Associate