ODOT says HB 3,991 averts layoffs, boosts local funding and institutes road‑usage changes; committee hears project delivery and IVR/Rose Quarter updates

The Oregon Department of Transportation told the Joint Interim Committee on Transportation that House Bill 3,991 — adopted in the recent special session — will provide revenue to prevent layoffs in the current biennium, increase local government apportionments by about 30% and create a temporary boost in public‑transportation funding that sunsets in 2028.

Travis Brower, ODOT deputy director, said the package shifts some charges onto a road‑usage charge for efficient passenger vehicles and restructures heavy‑truck taxation, while preserving a traditional mix of gas tax, registration and title fees. Daniel Porter, ODOT finance and budget administrator, added that the bill will convert the voluntary road usage pilot into a mandatory program phased in for electric vehicles and then hybrids (with an opt‑out annual fee option) and will simplify the weight‑mile tax for trucks into fewer rate bands.

Brower and Porter explained timing and distribution: some tax increases take effect on Dec. 31, the legislation’s revenue begins flowing in January with budget availability in February, and funds are apportioned in a 50/30/20 split between ODOT, local governments and other state uses. The legislation also creates small‑city grant funds (about $6,000,000 total across program shares) and a modest ODOT set‑aside (about $3,000,000 per year) to avoid rest‑area service reductions.

ODOT said it will continue some austerity until revenue posts, then begin phased hiring to fill roughly 759 vacancies across the agency, focusing first on frontline winter maintenance and DMV staff. Brower noted that the initial revenue profile provides nearly three‑quarters of a biennium of funding in the current cycle and that longer‑term revenue growth flattens later in the next decade, creating ongoing budget pressures.

The department also described statutory changes tied to accountability and oversight: the Continuous Improvement Advisory Committee (CIAC) will focus on major projects over $250 million and report quarterly to the Oregon Transportation Commission and the Joint Committee on Transportation; ODOT plans to publish a dashboard tracking implementation across more than 20 work streams tied to HB 3,991.

On major projects, ODOT staff updated the committee on project delivery performance and program status. The Interstate Bridge Replacement (IBR) program is nearing the end of its supplemental environmental review and working toward an updated risk‑based cost estimate; previous program estimates ranged between $5 billion and $7.5 billion and the program has identified roughly $5.3 billion in commitments from state, federal and toll sources to date while pursuing a $1 billion federal capital grant. ODOT emphasized that HB 3,991 did not include dedicated funds for IBR.

ODOT also provided a Rose Quarter update: current cost estimates for the full scope are about $1.96 billion to $2.08 billion, but grant conditions limit which phases can draw on certain federal dollars; Phase 1A (state of good repair/preservation, stormwater and safety work) began construction in July 2025 with about $70 million in work and the Transportation Commission asked for options to phase scope to remain within earlier cost guidance.

ODOT staff stressed that many of these issues require continued monitoring and that they will provide quarterly reporting and online dashboard access to the Joint Committee and public as implementation proceeds.