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ODOT warns falling fuel revenue and high construction costs will constrain projects
Summary
Oklahoma Department of Transportation leaders told legislators rising construction costs, declining fuel-tax collections and a large maintenance backlog are putting pressure on the agency—s ability to deliver projects; ODOT asked lawmakers to authorize the $590 million roads fund and other targeted deposits.
The director of the Oklahoma Department of Transportation told a legislative budget committee that declining motor fuel tax revenues and rapid construction-cost escalation have reduced the agency—s buying power and will slow delivery of highway and bridge projects unless lawmakers provide continued support and authorize existing fund caps.
Director Gatz said the department is asking the Legislature to authorize the statutory $590 million roads fund allocation and listed additional requests including $6.9 million for the rural transit revolving fund to match federal programs, $2 million for mobility management and $10 million for lake and industrial access projects. He also described a multi-year construction plan and the department—s asset backlog.
ODOT provided several system-level figures during the presentation: the highway network comprises roughly 12,235 centerline miles and about 33,000 lane miles; the department values the transportation asset at about $102 billion and estimates a backlog of roughly $27 billion in known needs. The department also reported aging bridge stock and said about 1,100 bridges are 80 years old or older; a like number of bridges are rated at risk.
Gatz highlighted that major construction input prices rose roughly 60% from early 2021 through early 2024, reducing buying power and delaying the addition of new projects to the eight-year construction work plan. "We're starting to worry a little bit because both motor fuel taxes is showing decline," he said, arguing the department must adapt investment strategies as fuel consumption drops because of improved vehicle efficiency.
The department reviewed revenue dynamics: Oklahoma collects about 19 cents per gallon in state motor fuel tax, has an indexed roads fund cap that in recent years has been supported by a mix of motor fuel tax, motor vehicle collections and income tax, and received two rounds of one-time allocations in 2024 and 2025 that helped keep projects on track. On the federal side, Gatz noted the Highway Trust Fund has relied on general revenue transfers and warned of long-term solvency concerns.
ODOT also discussed specific programs: the Heartland Flyer passenger service is growing but the department said a proposed northern extension would cost an estimated $280 million and is not included in the department—s budget request. The agency said weigh-station and port-of-entry maintenance is underfunded because of shifting revenue flows and flagged needs for additional facilities on southern borders and interior routes. Director Gatz said drug- and traffic-safety investments such as cable barrier installations have reduced crossover fatalities on high-speed multi-lane highways but that rural two-lane roads without shoulders remain a major safety focus.
Senators questioned issues ranging from the effect of possible income-tax changes on transportation funding to license-plate-reader legal authority, remote-work policies for ODOT employees, and the status of specific grant programs. The department said it will continue to press for formula and targeted funding to sustain preservation, safety and mobility investments.
