Legislature's failure to pass transportation package leaves PBOT with $11M gap and potential layoffs, bureau warns

City staff from the Office of Government Relations and the Portland Bureau of Transportation briefed the Transportation and Infrastructure Committee Monday on outcomes from the 2025 Oregon legislative session and outlined immediate impacts to Portland if no state transportation package is enacted.

Millicent Williams, director of the Portland Bureau of Transportation, told the committee the bureau now faces a projected $11 million shortfall for fiscal year 2025–26 because the legislature adjourned without a transportation funding package. "Current projections indicate that we will lose up to 50 staff," Williams said. "This loss could also mean up to 300 street lights will not be repaired this year." She added that layoff notices could be issued as soon as Monday, July 14 if the bureau cannot identify alternative revenue.

Evan Mitchell and Derek Bridal from the city's Office of Government Relations outlined how a transportation package collapsed late in the session. Bridal said the legislative process included months of preparatory discussions and regional coordination, but the final package was released only about 20 days before sine die and then changed again at the last minute, leaving insufficient time for full analysis and caucus consideration. The presenters said legislators also contended with internal politics, absences that affected supermajority math, and concerns raised by an audit of the Oregon Department of Transportation (ODOT) that cast the agency in a negative light and complicated votes on a broad package.

PBOT staff emphasized the practical consequences of the package's collapse. PBOT derives over half of its General Transportation Revenue (GTR) from the State Highway Fund, which is commonly distributed about 50% to ODOT, 30% to counties and 20% to cities. Without the new statewide dollars, PBOT staff said they must reassess capital and maintenance programs, delay or rescope projects, and reconsider grant matches that rely on local GTR. Williams said the bureau's deferred maintenance backlog is roughly $5–6 billion and that each year of deferred maintenance increases future repair costs.

The presentation listed specific service impacts the bureau must consider: delayed traffic signal upgrades on busy corridors, fewer responses to the city's 823 safe service requests, reduced work on pavement maintenance, and curtailed installations of stop signs and crosswalks. Williams also said ODOT will reduce some work, including IRP cleanup on ODOT right of way, and that contracted work may replace some city crews.

Committee members asked for details about the package's contents and why it failed. Staff responded that an early framework released in May lacked full revenue estimates and that the late release of a more complete bill limited legislators' time to analyze and negotiate. Staff and councilors discussed several bill references (earlier session bills such as HB 2017 and a late package referenced as HB 3402/"34 0 2" in committee remarks), and said the final day pivot left cities and counties concerned the package would not provide sufficient local maintenance and operations funding.

PBOT and OGR staff said they will continue to press for state action, coordinate with regional partners, and pursue local options. The Transportation and Infrastructure Committee passed a separate resolution referring the city to develop alternate revenue strategies and added an amendment urging the governor to call a special session. Committee members said they would seek expedited full council consideration and were prepared to make jurisdictional calls urging state action.

City staff and council members said the failure of the package was not only a missed funding opportunity but also a risk to public safety, workforce morale and long‑term maintenance costs. Staff requested the committee's support in communicating with state leaders and in directing bureaus to prepare alternatives to fill the gap.