Budgeting and Appropriations | Biennial enactment of one 24-month budget; fiscal year begins July 1. ODOT prepares a two-year budget request, which is approved by the Transportation Commission, then by the governor. The governor's proposed budget is presented to the Legislative Assembly. The Legislative Assembly, through the Joint Committee on Ways and Means, hold public hearings, incorporates any legislative policy initiatives, makes modifications based on legislative priorities and adopts an appropriation bill, which is subject to gubernatorial approval or veto. |
Bonding or Pay-as-You-Go | Combination of bonding and pay-as-you-go financing. Bonding, which historically had been low in Oregon, was substantially increased by three bonding programs passed in 2001, 2002 and 2003, known collectively as the Oregon Transportation Improvement Act. The resulting bond revenue now supplies most state funds available for highways. |
State-Level Funding Provided for DOT Budgets | FY 2011 (approved): $1.36 billion |
Allocation of Federal Transportation Funds to the DOT | Federal formula funds for transportation flow directly to ODOT with no state legislative appropriation. However, ODOT is subject to an expenditure limit on those funds that is set by the Legislative Assembly on a biennial basis. Legislative approval also is required for ODOT to apply for federal grants that are not allocated by formula (Or. Rev. Stat. §291.375). |
Allocation of State Transportation Funds to the DOT | State transportation funds flow directly from the revenue source to ODOT but, like federal funds, are subject to the biennial expenditure limit. Some state funds are appropriated to specific projects in special legislation. |
Traditional State Funding and Finance for Highways | Fuel taxes; vehicle registration/license/title fees; truck weight fees; interest income; revenue bonds. |
State Funding and Finance for Other Modes | Transit: General funds; tobacco tax revenue; personal identification card fees; a portion of fuel tax attributable to non-road uses; Mass Transit Tax (administrated by the Department of Administrative Services, not ODOT). Rail: Custom license plate fees; safety inspection and rail regulation fees; fares. Aviation: Jet fuel taxes; aviation fuel taxes; lease income; pilot registration fees; aircraft registration fees. Air, marine, rail and transit projects also can receive funds from the Multimodal Transportation Fund, which is supported by lottery-backed revenue bonds (Or. Rev. Stat. §367.080). |
Innovative Transportation Funding and Finance | GARVEE bonds; Build America Bonds; state infrastructure bank (federally capitalized); PPPs (authorized in statute); design-build (authorized in statute, used as a component of at least two projects); vehicle-miles traveled fees (pilot project); weight-distance tax; container fees; traffic camera fees; impact fees; tapered matching; advance construction. |
Dedicated/Restricted State Funds and Revenues | The state constitution restricts the use of motor fuel tax and motor vehicle-related revenues to highways, roads, streets roadside rest areas, administrative expenses and bond repayment. Taxes or excises levied on ownership, operation or use of recreational vehicles and snowmobiles may be used for parks or recreation areas; taxes on commercial vehicles may be used to enforce commercial vehicle regulations (Or. Const. art. IX, §3a). Net revenues from dedicated taxes and fees are deposited into the State Highway Fund, to be used only for the purposes authorized by law (Or. Rev. Stat. §366.505). Revenues from taxes on jet fuel and aviation gasoline are deposited in the State Aviation Account and statutorily dedicated to aviation (Or. Rev. Stat. §319.417). The Multimodal Transportation Fund, supported by lottery-backed revenue bonds, is statutorily dedicated to air, marine, rail and transit projects, and cannot be used for projects that are eligible for motor fuel tax expenditures (Or. Rev. Stat. §367.080). |
DOT Authorized to Retain Surplus Funds | Yes and no. Other than general funds, excess highway funds are retained in the ODOT ending balance that serves as a beginning balance for the next biennial budget. Excess general funds are reverted to the general state ending balance for reallocation by the Legislative Assembly. ODOT cannot spend funds in excess of its expenditure limit without legislative approval. |
Legislative Approval Required to Move Funds Between Projects | Yes, in some cases. Generally, ODOT must seek approval from the Transportation Commission, not the Legislative Assembly, to move funds between projects. In 2009, however, the Legislative Assembly allocated funds to 37 specific projects and 12 local governments; these allocations cannot be changed except by legislative action. |
Transportation Funding Allocations through Local Aid | The State Highway Fund is distributed among the state, cities and counties for road construction and maintenance. ODOT allocates a portion of several transportation-related revenues, including fuel tax receipts, from the State Highway Fund to counties and cities by statutory formula. Funds are distributed to counties by a statutory formula based on vehicle registrations, with additional funds distributed to counties with a road base funding deficit in the prior fiscal year. Funds are distributed to cities by a statutory formula based on population (Or. Rev. Stat. §§366.739 et seq.). State funds also are allocated to local entities through state legislative appropriations and ODOT discretionary allocation of funds. |