Oregon Department of Transportation budget crisis

The Oregon Department of Transportation (ODOT) is facing a projected $200 million budget shortfall for the 2027–29 cycle. This deficit is attributed to inflation and a decline in gas-tax revenue as electric vehicle adoption increases, compounded by the rejection of a 2025 law intended to generate $4.3 billion in new tax revenue.

To address the gap, the agency is considering cutting nearly 550 positions, which represents approximately 11% of its workforce. These potential cuts include 193 jobs in maintenance and operations, 125 in the Driver and Motor Vehicle Services Division, and 120 in project delivery. While about 10% of the at-risk positions are currently vacant, the remaining reductions would require layoffs.

Agency officials and experts have warned that these reductions could lead to the deterioration of state roads, bridges, and highways. ODOT Chief Engineer Tova Peltz noted that maintenance crews are already being diverted from routine tasks, such as pothole patching, to manage severe weather and wildfire emergencies. There are growing concerns regarding worker safety and burnout as staff are increasingly required to support emergency responses, including traffic management and highway closures for fire breaks.