Oregon Transportation Agency Faces $200 Million Budget Gap, Threatening Hundreds of Jobs

The Oregon Department of Transportation (ODOT) projects a $200 million shortfall for the 2027‑29 budget cycle, driven by inflation and declining gas‑tax revenue as electric vehicles replace gasoline cars. A 2025 law that would have added $4.3 billion in new taxes was rejected by voters, leaving ODOT without additional revenue. Without legislative action, the agency expects to cut nearly 550 positions—about 11% of its workforce—including 193 jobs in maintenance and operations, 125 in the Driver and Motor Vehicle Services Division, and 120 in project delivery.

At the same time, Southern Oregon University in Ashland is confronting a $15 million budget deficit. The state legislature approved a one‑time $15 million emergency grant, contingent on the university slashing $20 million in spending. The university’s “SOU Vitality” plan calls for eliminating one major program, cutting 61 faculty and staff positions, reducing class sizes, and trimming athletic department spending by more than $1.45 million. Over four years, the school has already cut nine majors and reduced its workforce by 212 positions, raising concerns that closure could become a realistic outcome if further cuts are needed.