Oregon economist examines the future of ODOT

Portland economist Joe Cortright says ODOT’s projects have a history of costing much more than initial estimates. He points to proposals like the I-5 Rose Quarter project which has been in the works for nearly a decade and is estimated to cost around $1.9 billion. The estimate in 2017 was $450 million. A Statesman Journal investigation found that ODOT’s projects were over budget and the agency was unable to track some of its funds and how they were spent. Cortright, the director of City Observatory, an urban policy think tank based in Portland, joins us with details of his concerns. In a statement, ODOT writes:Transportation agencies across the state face a structural revenue issue. This issue is driven by three causes: flattening and declining gas tax revenues as cars become more efficient, consistent inflation that eats away at the purchasing power of each dollar, and legal restrictions that prevent ODOT from using available dollars to fund maintenance and operations.While the Legislature increased the gas tax in recent years, revenues are now at their peak and are expected to flatten and decline in coming years. When you account for inflation, the buying power of that revenue source is set to dramatically decrease. ODOT’s major projects in the Portland metro area, supported by city, county, state, Metro and community leaders, have seen costs grow in recent years. However, the funds dedicated to these projects are specifically directed by the legislature to construction projects and cannot be used for day-to-day maintenance and operations of the highway system. We are forced to cut back on critical efforts like plowing snow and fixing potholes independent of funding these popular projects. The public and our partners have consistently told us they want us to do both. We take our responsibility to provide safe travel for all Oregonians very seriously. The last thing we want to do is let the system we built fall into disrepair. But because of how our funding is structured, we are increasingly forced to do so. We are focused on achieving sufficient and sustainable funding for maintenance and operations in this legislative session. We are increasingly optimistic that the legislature will take this opportunity to break the pattern of past legislatures and robustly fund the maintenance, operation and preservation of our transportation system.