The Portland Bureau of Transportation (PBOT) is poised to tackle a longstanding dilemma regarding its financial sustainability as it struggles with a lack of cash and dwindling revenue sources from driving.
Next week, during the City Council Transportation and Infrastructure (T & I) Committee meeting on July 7th, councilors are expected to pass a resolution urging PBOT administrators to develop a comprehensive strategy aimed at identifying and evaluating alternative funding sources.
For decades, PBOT has envisioned a stable revenue stream to support various projects, programs, and operations. However, the need for such funding has intensified following the recent failure of the Oregon State Legislature to approve a transportation funding package.
Previously, PBOT had anticipated receiving $11 million from the State Highway Fund under the assumption that House Bill 2025 would pass. This would have increased funding to $28.4 million by 2028 and $56 million by 2031. In light of the legislative failure, Portland city leaders are urgently seeking action to address these financial shortfalls.
Currently managing 4,800 miles of streets and covering 30% of the city’s total land area, PBOT is operating under increasingly constrained resources that have not kept pace with inflation or the growing demands placed on road infrastructure by users.
The resolution set for discussion at the T & I Committee meeting aims to initiate a public process, gathering insights from Portland residents to recommend the most feasible and equitable path forward.
An excerpt from the upcoming resolution highlights the urgency:
“The resolution initiates a process to address significant and ongoing funding shortfalls… By directing staff to identify and evaluate sustainable funding alternatives, this effort is intended to inform future budget decisions and support long-term financial stability for the Portland Bureau of Transportation.”
It remains uncertain how this new process will differ from the Pricing Options for Equitable Mobility (POEM) plan adopted in 2021. That planning effort engaged a stakeholder committee and formulated various revenue-raising recommendations, though little progress has been made to implement them since.
The lack of action on POEM may erode enthusiasm for this new funding strategy, but the current climate presents a heightened sense of urgency compared to four years ago.
The combination of legislative setbacks affecting PBOT and the emergence of a fresh city government with new perspectives offers hope that meaningful advancements can finally be realized in addressing this funding issue.
Mayor Keith Wilson has indicated ongoing discussions with PBOT and T & I Committee leadership to explore potential new funding mechanisms.
During the last T & I Committee meeting on June 23rd, PBOT Deputy Director of Planning Art Pearce articulated the necessity for the agency to transition its funding streams away from reliance on driving-related taxes and fees to establish more sustainable financial practices.
Pearce proposed viewing PBOT as a utility, funded similarly to essential services such as water, sewer, or electricity, emphasizing that it might be beneficial to establish a new PBOT utility fee.
As these discussions unfold and if the resolution passes, officials expect to have a report prepared by December of this year, paving the way for new funding solutions to stabilize PBOT’s financial future.
image source from：bikeportland
