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About Oregon news herald. (Drain OR) 2025-current | View Entire Issue (Jan. 1, 2026)
Page 4 Continued from Front Page January 2026 ODOT Funding Fight Not Settled - Not Over expansion projects. Almost immediately after the bill passed, a coalition of citizen groups, small business owners, and transportation skeptics launched a referendum campaign. Their argument was not centered on a single tax increase but on broader concerns about affordability, accountability, and the cumulative burden of state fees during a period of economic uncertainty. By late December, organizers reported collecting roughly 200,000 signatures — well above the threshold required to refer a bill to the ballot under Oregon law. Those signatures are now undergoing verification by the Oregon Secretary of State. During that process, the law’s tax and fee provisions are paused, preventing the state from collecting the new revenue until verification is complete and, if the measure qualifies, until after a statewide vote. That pause has immediate and longer-term consequences. Budget planners had expected the new revenues to begin flowing early in 2026, allowing ODOT to stabilize its finances and begin planning multi-year work programs with more certainty. With the referendum in play, those funds are now in limbo. ODOT has confirmed it will continue operating under existing revenue streams, but officials acknowledge that uncertainty complicates everything from contract timing to staffing decisions. While routine maintenance and safety work will continue, larger capital projects are more difficult to commit to when revenue timing is unclear. Contractors, engineers, and local partners often require firm funding assurances months or years in advance. A delayed or overturned funding plan could force projects to be rescheduled, scaled back, or shelved entirely. The effects are especially pronounced in rural Oregon. Outside major metropolitan areas, state highways serve as critical links for agriculture, forestry, tourism, and freight. Many rural communities rely on ODOT for road maintenance they cannot afford locally. County public works departments had already begun planning around anticipated funding increases, reallocating crews and equipment in expectation of a more stable state program. Local officials say even short delays can ripple outward. Pavement preservation postponed for a year often costs significantly more later. Bridge repairs deferred too long can escalate into full replacements. In coastal and Oregon News Herald mountain regions, weather-related damage compounds quickly when maintenance schedules slip. Beyond operations, the funding fight has exposed deeper structural issues in Oregon’s transportation system. Fuel taxes, long the backbone of highway funding, have failed to keep pace with inflation, Continued on Page 15
