Ways and Means subcommittee advances ODOT budget with position reductions and contingent restorations tied to transportation funding

The Legislative Fiscal Office presented a recommended 2025‑27 budget for the Oregon Department of Transportation (ODOT) and the Joint Ways and Means Subcommittee on Capital Construction moved the LFO recommendation on Senate Bill 5541 to the full committee with a due‑pass recommendation.

LFO recommended a 2025‑27 budget of $6,057,012,676 total funds and 4,803 positions, which the staff characterized as a 12.4% decrease from the 2023‑25 legislatively adopted budget and a 4.1% increase from the current service level. To address an estimated State Highway Fund revenue shortfall, the recommendation includes a $46,000,000 other‑fund reduction and elimination of 121 operations and maintenance positions; many of those reductions were proposed as vacancy savings or temporary abolitions, and several package restorations were shown as contingent on passage of a transportation funding bill that would generate sufficient revenue to restore a majority of the operations and maintenance positions.

The LFO budget summary provided line‑by‑line packages across ODOT divisions (maintenance, project delivery, driver and vehicle services, debt service, public transportation, etc.). Notable items in the work‑session summary include: reductions of hundreds of positions and tens or hundreds of millions in other funds in package 70 to reflect state highway revenue shortfalls; package 320/330/350 restorations to maintain a modified current service level if funding is restored; an interstate bridge replacement program total funds figure provided; and targeted appropriations such as $171,678 General Fund from the Housing and Homelessness Initiative to create a permanent full‑time operations policy analyst position as a single point of contact for major housing projects and permit review prioritization.

Committee members expressed concern about the magnitude and distribution of cuts and the process of coupling the budget to an uncertain transportation funding package. Representative Dreisen and others asked whether the cuts were distributed uniformly and argued reductions that eliminate operations and maintenance positions could impact core services such as snow removal and road upkeep; LFO staff responded that reductions were not across the board and were informed by ODOT priorities and feedback. Several members urged collaboration with the department and acknowledged external pressures (inflation, COVID impacts) that have affected project costs. The subcommittee adopted the LFO recommendation and dash 4 amendment and moved Senate Bill 5541 as amended to the full committee with a due‑pass recommendation. Several members recorded or signaled opposition to adoption pending clarity about the transportation funding package and the long‑term effect of position reductions.

Next steps: SB 5541 as amended was moved to the full Ways and Means Committee; budget restorations and many position decisions remain contingent on future transport funding legislation and potential floor negotiations.