Urge the Public Works and Budget and Finance Service Areas to develop a comprehensive strategy for alternative funding for transportation and infrastructure

Portland’s transportation system is facing a critical funding crisis, marked by a long-term decline in revenue and compounded by successive budget cuts to the Portland Bureau of Transportation (PBOT) since 2019. As traditional funding sources such as fuel taxes and parking fees become increasingly unsustainable—due in part to the rise of fuel-efficient and zero-emission vehicles—the City is struggling to maintain its transportation infrastructure. The effects of this funding shortfall are visible citywide, with over half of busy streets and nearly two-thirds of local streets rated in poor or worse condition, contributing to deteriorating infrastructure, unsafe crossings, and unaddressed potholes. This situation has been further exacerbated by the Oregon State Legislature’s failure to pass a statewide transportation funding package in 2025, deepening PBOT’s budget challenges. In response, City Council is calling for a coordinated effort by the Public Works and Budget and Finance Service Areas to develop a comprehensive and sustainable funding strategy. This initiative will include broad community engagement to explore equitable alternatives and will culminate in a detailed report by December 1, 2025, outlining funding scenarios, stakeholder input, and recommendations for implementation.

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Portland’s deteriorating transportation infrastructure—characterized by unsafe crossings, potholes, and crumbling streets—directly affects the daily lives, safety, and mobility of residents across all neighborhoods. These conditions disproportionately impact vulnerable communities, including low-income residents, people with disabilities, and those who rely on walking, biking, or public transit. The ongoing lack of adequate funding has limited the City’s ability to maintain streets and provide essential transportation services equitably. This resolution aims to address these challenges by initiating a community-informed process to explore sustainable and equitable funding solutions. By engaging a broad cross-section of stakeholders—including residents, neighborhood associations, community-based organizations, and businesses—the City seeks to ensure that future transportation investments reflect the diverse needs and priorities of the community. While there is no immediate change to services, this effort lays the groundwork for long-term improvements in infrastructure, safety, and quality of life throughout Portland.

Adoption of this resolution does not result in any immediate or direct financial or budgetary impact. However, the resolution initiates a process to address significant and ongoing funding shortfalls within Portland’s transportation and infrastructure systems. 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. Any potential costs associated with community engagement or strategy development will be managed within existing bureau resources.

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