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OTC hears short‑session rebalance that shifts $296M and delays multimodal grants
Summary
ODOT told the commission the 2026 short session produced a one‑time rebalance that redirects roughly $296 million in transportation funds to operations and maintenance, requiring 138 positions be held vacant for the biennium and delaying or shrinking several multimodal grant rounds including Safe Routes to School and Connect Oregon.
The Oregon Transportation Commission on March 12 received a post‑session update from ODOT staff explaining how lawmakers closed a large shortfall for the biennium.
"The legislature redirected $218,000,000 in total funding that was within ODOT's budget," ODOT deputy director Travis Brower said, describing a package of transfers, state–federal swaps and one‑time redirections designed to avoid layoffs. Brower told commissioners the mix includes highway funds shifted to operations and maintenance and reductions in multimodal programs.
The department identified roughly $296 million in redirections overall and said those moves will be largely one‑time for this biennium. The agency said about two‑thirds of the required 138 additional vacant positions will come from project delivery. "There will be reduced service levels compared to the past," Brower said, adding ODOT expects to relax some austerity measures as revenue stabilizes.
Commissioners and stakeholders pressed staff on what the cuts will mean in practice. Brower identified program impacts: Safe Routes to School construction will lose about $17 million this cycle (affecting roughly 17 communities' projects), the next Connect Oregon round will be cut from a planned ~$75 million to about $30 million, and community charging and other operating‑funded initiatives will see smaller pools of money or delays.
Commissioner Jana Jarvis and others repeatedly asked staff to clarify whether projects would be canceled or merely delayed. "We're not canceling or delaying any constructed projects," Brower said; he added that most effects will come through delayed grant rounds or smaller grant sizes rather than wiping out already‑awarded work.
The commission heard repeated warnings that the rebalance is short term. "This holds us together for 18 months," Vice Chair Beyer said, urging a long‑term funding solution for 2027. ODOT said it will return regularly to the commission with budget updates and expects to refine the list of delayed or reduced programs as it implements the redirections and publishes notices to affected applicants.
