Analysis

Oregon says it will soon run out of money for transportation

By Rob Zako
May 2, 2024

The Oregon Department of Transportation is asking the Legislature for more funding to operate and maintain existing highways.

2023–25 ODOT Legislative Budget: $6.1 Billion in Expenditures
ODOT administers programs related to Oregon’s system of highways, roads and bridges, railways, public transportation services, transportation safety, driver and vehicle licensing, and motor carrier regulation. The 2023–2025 budget is $6.12 billion, an increase of 1.4% from 2021–2023. Source: ODOT

UPDATE 7/18/24: Added more external links and further reading.

BEST believes we should first ask Oregonians what they believe is worth paying for—and who decides—before asking how they want to pay. These are the fundamental questions, in order or importance:

  1. Outcomes: Who benefits?
  2. Governance: Who decides?
  3. Revenues: Who pays?

Driving this discussion are concerns that the Oregon Department of Transportation (ODOT) doesn’t have enough funding to maintain and operate the highway system we have, and that the gas tax has become obsolete.

The chart above shows that ODOT allocates only 9% of its budget to maintenance and operations but 52% to capital investments. Couldn’t the Legislature shift its priorities to provide more to the former and less to the latter?

ODOT says, “The gas tax has served Oregonians well for years, but the problem with using it to fund a transportation system is that cars are using less gas as they become more efficient.” Couldn’t the gas tax be indexed to 1) average fuel efficiency and 2) inflation so that revenues are stable?

In the coming months, BEST will be focusing on what transportation investments deliver the best value to all Oregonians, and on how priorities are decided. If we see there are good investments needing funding, we will look to see what are fair, efficient, and adequate sources of revenue.

To learn more, see the headlines below under “Further reading.” They paint a picture of the conflicting forces at play as Oregon grapples with the challenges of providing transportation for everyone.

If you wish to be part of this discussion, join our Cycle of Change Legislation working group.

Further reading

External links

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