ODOT's budget is about $6 billion over two years. About a third comes from the federal government and the rest from state government. The Oregon State Legislature must approve our budget and most of our funding is directed by law to specific uses and can't be moved around. For example, we face a major shortfall in funding for day-to-day maintenance on our roads—like plowing snow and patching potholes—because almost all new revenue, particularly federal funds, is required by law to be spent on construction projects. Many things impact ODOT's performance and one of the main factors holding us back is a lack of funding.
Oregon's transportation funds are insufficient
We are doing our best with the available resources and are seeking new, long-term funding streams for the future. To achieve our goals in the Oregon Transportation Plan, we need
significantly more funding than we currently have.
- Costs for road maintenance have gone up and increased drastically for construction in the last decade.
- Revenue from the gas tax — which goes into our State Highway Fund — has plateaued and is predicted to decline in the coming years.
- Major transportation taxes and fees are set at flat rates that don't change with inflation, meaning they buy less and less every year.
- If Oregon's gas tax of $0.24 per gallon in 1993 had kept up with inflation to 2023 it would be $0.51 - instead of our actual rate of $0.40 per gallon. That $0.11 is a difference of $250 miilion in annual revenue (in 2023 dollars).
- Across the US, there are 24 states that adjust their gas taxes to rising costs.
- The
Transportation Funding Needs document shows the most urgent funding needs for State Highway Fund investments - including core service functions like maintenance and DMV, as well as safety investments needed to address increases in traffic deaths.
Watch this five-minute video to learn more about these issues. Also visit ODOT's funding webpage:
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