For a third consecutive year, Oregon lawmakers will convene in January knowing the state's transportation agency cannot afford to maintain its current service levels.

Without new revenue, more than 4,500 miles of county roads statewide will "quickly deteriorate beyond repair," according to Mallorie Roberts, legislative affairs director for the Association of Oregon Counties. Washington County roads depend on the same state highway fund that has been losing ground for a quarter century.

Rep. Susan McLain, a Forest Grove Democrat who chairs the House Transportation Committee, joined six other lawmakers July 7 at the third meeting of Gov. Tina Kotek's "Rebuilding Our Transportation Vision" workgroup in Salem. McLain represents District 29, which covers Forest Grove, Cornelius, and parts of Hillsboro. She was one of seven legislators invited to discuss priorities for a 2027 transportation funding bill.

McLain made the case for urgency after voters rejected Measure 120 on May 19 by an 82-18 margin: "We've got to keep the general public involved, and we've got to do it in a timely way, because it's going to cost us way more if we do not get this done in '27."

That measure would have sustained the 2025 transportation tax and fee hikes, projected to raise $4.3 billion over 10 years through a 6-cent gas tax increase, higher vehicle registration fees, and a doubled transit payroll tax.

How the state got here

ODOT's state highway fund has lost roughly 27% of its purchasing power since 1998 after adjusting for inflation, with gas tax revenues eroding further as more drivers switch to electric vehicles.

The last major transportation bill passed in 2017, directing $1.2 billion toward state and local road projects, but cost estimates have since soared and many projects remain unfinished.

In the 2026 short session, lawmakers closed a $297 million ODOT budget shortfall by redirecting $218 million from existing transportation funds and cutting $78.2 million from the agency's budget.

That fix keeps ODOT running through June 30, 2027, but does not solve the structural problem. The agency has about 700 vacant positions statewide, nearly 15% of its workforce.

What's on the table for 2027

At the July 7 roundtable, lawmakers discussed indexing the gas tax to inflation, taxing new vehicle sales or buyers of vehicles worth more than $75,000, road user charges based on miles driven, taxing tourists who use state roads, and potentially splitting ODOT by separating DMV and rail into standalone agencies.

Sen. Bruce Starr, R-Dundee, the lone Republican at the roundtable, urged realism and suggested reimagining ODOT's structure entirely.

Lawmakers agreed that any new package should avoid committing to specific projects before having accurate cost estimates, citing overruns on the I-5 Rose Quarter and I-205 Abernethy Bridge projects.

They also agreed a bill must be introduced by late January or early February 2027 to allow enough time to work through the legislative process.

What it means locally

Half of Oregon's gas tax revenue goes to the state; the other half is split between counties and cities for their own road needs. The 2026 budget fix did not reduce that local share, according to ODOT. But without a long-term solution, ODOT chief engineer Tova Peltz told the workgroup that the agency will only be able to afford paving state interstates beginning in 2027.

Non-interstate roads, including county roads that receive state highway fund revenue, face worsening conditions.

Neither the Washington County Board of Commissioners nor local CPO leaders have weighed in publicly on the state funding crisis.

The workgroup meets monthly through November 2026, with final recommendations due to Kotek by year's end.

Residents can weigh in through their local CPO or the Washington County Board of Commissioners, which meets most Tuesdays at the county administration building in Hillsboro.