Oregon’s Transportation Crisis: Governor Kotek Calls Lawmakers Back to Dodge Mass Layoffs
Oregon’s transportation system is on the brink, and Governor Tina Kotek isn’t wasting any time. On Tuesday, she announced plans to recall state lawmakers to Salem for a special session starting August 29. The goal? Secure emergency funding to keep the Oregon Department of Transportation (ODOT) afloat and prevent hundreds of layoffs that could cripple vital services.
A Looming $350 Million Gap
The heart of the issue is a massive $350 million shortfall in ODOT’s budget — a gap left gaping after the recent legislative session wrapped up without a long-term fix. This funding hole threatens to shutter maintenance stations and cut essential operations like snow plowing and wildfire brush clearing, services Oregonians rely on year-round.
Nearly 500 state transportation workers already received layoff notices this month, a stark warning sign that the agency is stretched dangerously thin. But Kotek’s move to call a special session aims to change that narrative, providing lawmakers a chance to patch the budget and keep those jobs intact — at least for now.
What’s at Stake: More Than Just Roads
Layoffs at ODOT wouldn’t just hurt workers. They would ripple across communities, affecting everything from local road maintenance to emergency wildfire response. The League of Oregon Cities was quick to voice support for the special session. Mayors from across the state warned that the cuts could slow evacuation efforts during wildfire emergencies and worsen road conditions, making daily commutes and commercial transport riskier.
North Bend Mayor Jessica Engelke captured the mood perfectly: “It was such a disappointment to not see a general transportation package move through the 2025 session,” she said. “A special session is a step forward.”
What Went Wrong in the Last Session?
The August recall comes on the heels of a tough legislative session where Democrats pushed for transportation funding bills packed with tax and fee hikes. However, those proposals failed to gain the necessary traction. At the last minute, lawmakers even floated a narrow plan intended to just barely cover costs and stave off layoffs—but it didn’t pass.
Republican House Leader Christine Drazan from Canby pointed fingers at Democrats for the impasse. She criticized the Democrats’ refusal to consider a Republican plan that would have funded transportation through existing revenues rather than new taxes. Drazan suggested that emergency reserves might offer a better alternative to calling a special session.
“We don’t want her to call the special session just because we believe there’s a better way,” Drazan said in an interview. “We don’t think Oregonians want this. We don’t think they can afford new taxes. We don’t think the agency is accountable enough to be given this money.”
Her comments also left the door open on whether House Republicans will participate in the upcoming special session. Oregon law requires a two-thirds quorum to conduct business, meaning bipartisan cooperation is crucial. Drazan added that while her caucus wants to solve the problem, she had yet to meet with them to gauge their stance on the special session.
Surprise Announcement, Mixed Reactions
Senate Minority Leader Daniel Bonham of The Dalles was caught off guard by Kotek’s announcement, saying he had no advance notice of the special session call.
“Literally talked to her yesterday and had zero idea this was coming today,” Bonham told The Oregonian/OregonLive. “I’m shocked, quite frankly.”
The surprise announcement underscores the high stakes and urgency surrounding Oregon’s transportation crisis. Behind the scenes, Kotek and her team have been in frequent talks with lawmakers from both parties, even working after hours and weekends to hash out a plan. But with recent sessions ending without a clear consensus, the special session represents a last-ditch effort to patch things before conditions worsen.
What’s Likely on the Table?
While Kotek has kept specifics under wraps, sources say lawmakers are expected to consider a package including a modest increase in Oregon’s 40-cent-per-gallon gas tax. Additionally, there could be hikes in the state’s 0.1% payroll tax earmarked for public transit and adjustments to fees on trucking companies.
These measures aim to generate enough revenue to bridge the funding gap without overwhelming taxpayers. Still, the conversation remains politically charged, with opposition voices wary of raising taxes amid concerns about economic strain and government accountability.
Delaying Layoffs, Buying Time
In a compassionate move, Kotek has instructed ODOT to delay the start of layoffs by 45 days, giving nearly 500 affected employees more breathing room to plan for the future.
“With the agreement of legislative leadership and with a plan for a special session now in place, I have directed ODOT to postpone the start date of layoffs for an additional 45 days, allowing impacted staff more time to make contingency plans for their livelihoods and their families,” the governor said.
The Service Employees International Union (SEIU) Local 503, which represents many state workers, hailed this delay as a win, while urging lawmakers to finally act during the upcoming session.
“Politics got in the way of the last transportation package,” SEIU President Melissa Unger told the press. “What I’ve heard from our members every day is that it feels like they are stuck in this political back-and-forth. And what we really need people to be focused on is the problem at hand and how to solve it.”
A First Step in a Long Journey
Kotek is clear that the special session’s expected funding package will not be a permanent fix but a short-term lifeline to keep basic services running.
“This is the first step of many that must be taken to meet our state’s long-term transportation needs,” she said.
With Oregon’s infrastructure facing growing pressures—from aging roads to climate change impacts—lawmakers will need to continue tackling these issues in future sessions. But for now, the focus is on avoiding immediate disaster: closing down maintenance stations, letting roads fall into disrepair, and forcing workers out of their jobs.
Why This Matters to Oregonians
-
Wildfire Preparedness: ODOT crews clear brush to reduce wildfire risks. Layoffs could slow these vital efforts.
-
Winter Safety: Snow plowing and road sanding keep highways passable during Oregon’s harsh winters.
-
Daily Commutes: Maintenance station closures could lead to potholes, unsafe roads, and longer travel times.
-
Economic Impact: Transportation delays and unsafe infrastructure affect businesses and local economies.
-
Worker Livelihoods: Nearly 500 employees face uncertainty without legislative action.
What’s Next?
Governor Kotek has set the ball rolling, but success hinges on lawmakers’ ability to come together and act quickly. Will Oregon’s elected officials put politics aside and approve the needed funding? Or will residents face worsening transportation woes and massive job losses?
Only time will tell. But with a clear call to action and a ticking clock, this special session could be Oregon’s last best shot at shoring up its transportation future—at least for now.
Login