The Joint Committee on Transportation has announced plans to hold 12 meetings and local tours across the state to address the pressing need for stable and sufficient transportation funding ahead of the 2025 legislative session. These events aim to foster public understanding of transportation funding challenges, gather input on statewide needs, and provide opportunities for public testimony.
Key meetings are scheduled for Downtown Portland on June 4, Happy Valley on September 26, and Hillsboro on September 27. The committee is still determining the format for public testimony, whether it will allow participation at multiple events or limit it to a single session.
During the meeting, discussions highlighted significant funding challenges facing the Oregon Department of Transportation (ODOT). Without structural reforms to the state highway fund, ODOT anticipates service reductions in the near future. The agency emphasized the necessity for a reliable funding plan to restore maintenance services, improve customer service, and address safety issues.
ODOT's budget for the 2023-2025 legislative period totals approximately $6.1 billion, with over half allocated to capital investments. However, concerns were raised regarding the maintenance and operations budget, which is primarily funded by the State Highway Fund. This fund is experiencing a decline in revenue due to the increasing prevalence of fuel-efficient and electric vehicles, alongside a rigid statutory structure that limits flexibility in fund allocation.
The meeting also revealed a projected $1.8 billion funding gap for service functions and safety system investments in upcoming budgets. Potential solutions discussed included indexing revenue mechanisms to inflation, implementing a road user charge, and exploring alternative funding sources.
As the committee prepares for the 2025 session, they will continue to seek public input on these funding concepts. The meeting concluded with a report on a recent trip to Washington, D.C., where discussions included the potential for a Vehicle Miles Traveled (VMT) tax as a national solution to transportation funding issues. The urgency of addressing these funding challenges was underscored, as many local projects have shifted from aspirations to basic maintenance needs due to budget constraints.