Around 50 employees of the Portland Bureau of Transportation (PBOT) are facing imminent layoffs due to a significant budget shortfall following the failure of the Oregon Legislature to pass a critical transportation funding package last month.
Portland Bureau of Transportation Director Millicent Williams expressed deep concern during a city council committee meeting on Monday, stating, “The loss of valued employees, along with their experience and knowledge, is irreplaceable.”
Staff members are expected to be informed of the impending layoffs as early as July 14, though the official layoffs will not take effect for several months, as noted by PBOT spokesperson Dylan Rivera.
The city’s transportation budget faces an $11 million gap, a deficit that will have severe repercussions on pedestrian safety initiatives and maintenance projects. This means Portland’s roads will remain unpaved, sidewalks will continue to crumble, and streetlights will stay broken, which Williams highlighted as a significant concern.
The announcement of these layoffs comes on the heels of a challenging city budget process that has already resulted in numerous job cuts across various departments, excluding PBOT. The failure to secure the expected state funding package has left city leaders shocked and frustrated.
“If I wasn’t livid before, I’m even more livid now,” stated District 3 Councilor Angelita Morillo, regarding the layoffs and accompanying budget cuts.
In response to the funding crisis, city councilors have advanced a resolution urging Governor Tina Kotek to convene a special legislative session to address transportation funding needs.
It remains unclear which positions within PBOT will be prioritized for layoffs. Ryan Sotomayor, a spokesperson for Laborers’ Local 483, which represents over 200 PBOT workers, described the layoffs as a “gut punch” to union members.
“We just got through this hard budget process with the city, and now, we’re having to start over,” Sotomayor said, expressing concern about the lack of confidence this situation instills in the leadership.
City officials have been called on to rethink their approach to transportation funding. Many councilors support a shift in strategy, and on Monday, the city’s Transportation and Infrastructure Committee passed a resolution urging administrators to explore new funding mechanisms for Portland’s transportation needs.
The resolution emphasizes the immediate necessity to find systemic and sustainable revenue sources, as mentioned in the proposal introduced by District 4 Councilor Olivia Clark.
PBOT’s financial troubles stem from a revenue model reliant on parking fees and state and local gas taxes—income streams that are dwindling as more Oregonians opt for fuel-efficient vehicles. This model has been deemed unsustainable by Director Williams, who pointed out the dual issues of climate concerns and future funding instability.
Each budget cycle has seen Portland’s transportation bureau grappling with financial crises. This year, PBOT entered the budget process with a staggering $38 million deficit, which was temporarily addressed through a combination of fee increases and an expected influx of state funding that ultimately did not materialize.
Williams warned that the budget hole will only worsen if the city fails to overhaul its revenue system. “This is not a matter of tightening our belts and finding efficiencies,” she said. “This is PBOT’s seventh year of reductions. The belt is already very tight. We need to address the lack of sufficient stable revenue. Without that, we cannot make meaningful progress toward the city’s transportation goals.”
In addition to ongoing operational costs, PBOT faces a maintenance backlog that has reached nearly $6 billion, highlighting the urgent need for a long-term solution.
Exploring avenues for restructuring its transportation revenue is crucial. Earlier this year, Mayor Keith Wilson noted that he is investigating the implementation of a new utility fee to support road maintenance, a proposal that has garnered interest from several city councilors.
The resolution that seeks to explore alternative revenue streams is set to be presented to the full council for final approval, signaling potential changes on the horizon for Portland’s transportation funding structure.
image source from：opb
