Approximately 50 employees from Portland’s transportation sector are expected to lose their jobs next week following the unexpected collapse of a state plan designed to support transportation agencies. The Oregon Legislature’s failure to approve a significant transportation package last month has resulted in an $11 million shortfall in Portland’s transportation budget. This budget gap will have immediate consequences, leading to delays in pedestrian safety initiatives and essential maintenance work, which will leave streets unpaved, sidewalks in disrepair, and streetlights nonfunctional, according to city officials. Consequently, this funding crisis will necessitate cuts to the city staff responsible for these critical functions.
The impending layoffs come on the heels of a challenging city budget process that has already resulted in numerous job reductions across various city departments, excluding the Portland Bureau of Transportation (PBOT). City leaders were blindsided by the failure of the state funding package, which was anticipated to alleviate PBOT’s budgetary shortfalls.
In response to the funding crisis, city councilors advanced a resolution on Monday urging Governor Tina Kotek to call a special legislative session to address transportation funding urgently. It remains uncertain which specific PBOT positions will be impacted first. Representatives from multiple city labor unions are currently awaiting further information from the city regarding the layoffs. Ryan Sotomayor, spokesperson for Laborers’ Local 483, which represents over 200 PBOT employees, described the potential job cuts as a “gut punch.”
Sotomayor emphasized the need for city officials to reevaluate their approach to funding transportation. Some city councilors share this sentiment. On Monday, the city’s Transportation and Infrastructure Committee approved a resolution encouraging city administrators to explore new financing strategies for transportation in Portland.
This ongoing funding structure has placed PBOT in a budget crisis for several consecutive years. The bureau began this year’s budget process facing a staggering $38 million deficit, which was temporarily addressed through a combination of fee increases and a hopeful reliance on state support. However, Williams projects that this budget shortfall will only deepen if the city does not revise its revenue model.
In addition to regular operating expenses, PBOT is currently facing a maintenance backlog estimated at nearly $6 billion. The city has not yet outlined potential options for restructuring its transportation revenue system. Earlier this year, Mayor Keith Wilson indicated he was exploring the possibility of implementing a new utility fee to fund road maintenance, a plan that has garnered support from several council members. The resolution passed on Monday to research alternative revenue streams will now move to the full council for final consideration.
