The Oregon Department of Transportation (ODOT) is facing a dire financial situation that could eliminate over 1,000 jobs if lawmakers don’t intervene during the next legislative session. The warning came during a recent meeting with the Oregon Transportation Commission, where officials highlighted the severe challenges confronting the state’s road system.

At the meeting, the commission “reluctantly” approved ODOT’s budget request for 2025-2027 despite the looming financial shortfall. ODOT is projecting a revenue deficit of more than $354 million over the next biennium, necessitating cuts of over $101 million in services and supplies. This could affect critical functions like road striping and deicing.

The proposed budget includes a significant reduction in ODOT’s workforce, with nearly 1,000 jobs on the line. The department’s staff would shrink by almost 20%, from 4,939 to 3,923 employees. “I hope this doesn’t come to pass,” said Lee Beyer, the commission’s vice chair. “It shouldn’t. I don’t think this is a budget… that the public wants. And I believe that, if they understand it, they will urge the legislature to take action to make sure we don’t end up with a budget that looks like this.”

ODOT’s financial troubles are partly due to rising road costs caused by inflation and declining revenue from gas taxes, as more people opt for electric vehicles and fewer are driving. Next year, lawmakers are expected to consider a package aimed at overhauling how the state funds its transportation system. This could include new taxes or fees designed to raise the necessary funds for maintenance and new projects.

The stakes are high: ODOT estimates that Oregon needs to spend an additional $1.8 billion annually to avoid a host of issues that could affect travelers across the state. Without this funding, Oregonians could face extended road closures, more potholes, increased trash on roads, and worse winter driving conditions.

In rural areas, staff reductions could force the state to consolidate crews and close maintenance stations, leading to longer response times. This can delay a response time, from a few minutes to an hour in the case of an accident. 

The potential job cuts would also hinder ODOT’s ability to manage extreme weather events. For instance, during winter, snow plows may no longer operate at night, which could disrupt school bus schedules. In wildfire season, there may not be enough staff to open and close freeways daily.

Moreover, the agency could struggle with maintaining its facilities and improving technology. 

Despite these challenges, officials remain hopeful that state policymakers will address the issue. “I, too, am cautiously optimistic that, with the support of the legislature and the governor and the people of Oregon, we’ll have the funds that we need to serve the state in a way that they deserve and that we can be proud of,” said Transportation Commissioner Sharon Smith.

ODOT plans to submit its budget to the Department of Administrative Services later this month. Governor Tina Kotek will collaborate with both agencies to develop her budget for executive agencies in December, and ODOT will present its budget to the Ways & Means Committee next spring.