Governor Kotek halts ODOT layoffs, uses constitutional authority to call special session August 29th
(Update: Adding reactions from ODOT, Republican Representative, Democratic Representative, House Republican leader, League of Oregon Cities)
SALEM, Ore. (KTVZ) — Governor Tina Kotek announced Tuesday that she is using her constitutional authority to call a special session of the Oregon Legislature to begin on Friday, August 29, for lawmakers to take up legislation to pay for basic road maintenance and operations at the Oregon Department of Transportation, as well as address funding needs for local governments and transit districts.
In calling lawmakers back to Salem to address a "transportation system emergency," Governor Kotek stated:
“In the weeks since the adjournment of the legislative session, my team and I have worked every day with legislators, local partners, and key stakeholders to zero in on a solution and a timeline for the Legislature to come back together and address the state’s most immediate transportation needs. Oregonians rely on these basic services, from brush clearing to prevent wildfires to snow plowing in winter weather, and they are counting on their elected representatives to deliver adequate and stable funding.
“At the same time, ODOT acted prudently in the absence of this funding, initiating a first wave of layoffs on July 7 while also working to reduce the impact to basic services as much as possible. Subsequently, with the agreement of legislative leadership and with a plan for a special session now in place, I have directed ODOT to postpone the start date of layoffs for an additional 45 days, allowing impacted staff more time to make contingency plans for their livelihoods and their families.
“I am confident that lawmakers will step up next month to avert these layoffs by approving the necessary funding for the state’s transportation needs. I appreciate their partnership and am eager to be on the other side of this crisis.”
Oregon Democratic Representative, Emerson Levy exclusively released a statement to KTVZ News.
“The Governor has called a special session for August 29, 2025, to revisit the transportation package. I am pleased to hear that she has also directed ODOT to postpone the first round of agency layoffs by 45 days."
Representative Levy added: "I will be in Salem for the Special Session advocating for safe roads in the winter and protecting the hard-earned money of our working people."
Senate Republican Leader, Daniel Bonham released this statement.
“Just weeks after the Legislature rejected the largest tax increase in Oregon history, the
Governor is calling us back to Salem to try again, this time with less notice and less
transparency.
Republicans offered a common-sense plan to get ODOT focused back on its core
mission, protect critical maintenance jobs, restore accountability, and avoid raising costs
on hardworking Oregonians. Democrats didn’t even give it a glance.
If Governor Kotek were serious about fixing our transportation system, she would start by
repealing her executive order on project labor agreements. That one decision alone adds
20 to 30 percent to the cost of every project. Her concern over budget shortfalls rings
completely hollow when she’s knowingly forcing taxpayers to overpay by millions. Instead,
she’s playing politics with frontline workers to pressure lawmakers into voting for higher
taxes.
For decades, Governor Kotek and her party have prioritized spending on programs that
line the pockets of special interests, such as costly housing initiatives that haven’t
delivered real results, while neglecting critical infrastructure needs. This mismanagement
has directly contributed to the crisis we face today.
Oregonians deserve roads that work, bridges that last, and a government that puts them
first, not more status quo policies and backroom deals to reward special interests.”
Here's the rest of her news release:
The Governor’s priority is to deliver needed funding for the state highway trust fund for the 2025-27 biennium and continue the state’s commitment to revenue sharing with local governments. A funded ODOT budget will halt pending layoffs and maintain operations at maintenance facilities scheduled for closure. In addition, her goal is to forestall immediate impacts to transit service through increasing the amount of funding available to the Statewide Transportation Improvement Fund.
The Governor also believes that key provisions related to ratepayer fairness, funding reliability, and agency accountability must be included in the solution.
“The special session will be focused on critical near-term solutions to stabilize basic functions at ODOT and local governments,” Governor Kotek continued. “This is just the first step of many that must be taken to meet our state’s long-term transportation needs.”
Following the adjournment of the 2025 legislative session, which concluded without sufficient resources to fund ODOT’s budget, the agency initiated 483 of an estimated 600 to 700 total layoffs. Absent legislative action to preserve Oregon’s transportation services, a second wave of layoffs, pending any unpredictable winter weather, is planned for early 2026.
Related stories:
Reaction to governor's announcement:
HOUSE REPUBLICAN LEADER RESPONDS TO SPECIAL SESSION ANNOUNCEMENT
SALEM, ORE. — House Republican Leader Christine Drazan (R-Canby) released the following statement in response to the governor announcing an August 29th special session to raise gas taxes on Oregonians after Democrats unsuccessfully attempted to pass one of the largest tax hikes in Oregon’s history:
“This could have been prevented if Democrats had come to the table and considered House Republicans’ alternative plan to fund ODOT by refocusing existing revenue instead of adding billions of dollars in new taxes on struggling Oregonians,” said Drazan.
“This could still be prevented today, without a special session, if Democrats made the decision to use existing revenue from the emergency board. We can still protect these jobs without raising taxes — and we should. Republicans have represented the voices of the people and fought hard to find solutions that don’t add new taxes. It’s now time for Democrats to do the same. We invite Democrats to join us in funding essential services without raising taxes, to stand with Oregonians who cannot afford to shoulder more costs.”
LOC Statement on 2025 Legislative Special Session
The League of Oregon Cities supports Governor Kotek in calling a special session of the Oregon Legislature to address the state’s funding needs for transportation infrastructure. Investment in the entire state’s transportation system is critical for business, housing, and for the safety and livability of communities.
The LOC is hopeful that the legislators returning to Salem will pass the proposal outlined by Governor Kotek. Leaving 12 Oregon Department of Transportation (ODOT) maintenance facilities mothballed puts communities and drivers at risk, since ODOT staff at these facilities are critical first responders to vehicular accidents, weather-related incidents, and wildfires. Governor Kotek’s proposal provides a necessary infusion of funding, but it is worth noting that this proposal is temporary and presents an opportunity for transportation advocates to work toward a more comprehensive, long-term solution during the 2027 legislative session.
The LOC would like to thank Governor Kotek and legislators for recognizing this critical need and taking the necessary steps to ensure the ongoing support of our statewide transportation system. The LOC will support this proposal and request that its members support all its elements.
Statements from City Leaders:
“We appreciate Governor Kotek’s leadership, calling a special session to fully staff ODOT and secure funding for cities and counties, and public transit. It was such a disappointment to not see such a generational transportation package move through the 2025 session. I’m encouraged the special session will take a step forward to fund ODOT staffing needs and provide local governments with a needed increase in funding for local roads” – LOC President and North Bend Mayor Jessica Engelke
“The closure of the ODOT maintenance facility in Detroit was a blow to our community. ODOT staffing and resources are vital as first responders to accidents, wildfires, and snow removal. Without an immediate response in the Santiam Canyon, our communities are at risk. I’m hopeful legislators will return to Salem and pass this transportation proposal.” – Detroit Mayor Jim Trett
“For my community, this situation must be resolved ASAP. We have almost three more months of fire season left in Sisters, and ODOT would be responsible for managing a mass evacuation if the city were threatened by wildfire. Without their personnel and equipment to assist our citizens and visitors, an evacuation could be more dangerous than the conflagration itself.” – Sisters Mayor Jennifer Letz
“I want to thank Governor Kotek for calling a special session. It is important that our legislators come together and pass a budget so that ODOT can maintain our state highways. With a community along U.S. Highway 101, I am very familiar with the critical role that ODOT staff play in responding to accidents and ever-changing road conditions. We need to provide stability and fund their operations and maintenance as much as investing in local streets.” – Lincoln City Mayor Susan Wahlke
About the League of Oregon Cities
Founded in 1925, the League of Oregon Cities is a voluntary association representing all 241 of Oregon’s incorporated cities. The LOC helps city governments serve their citizens by providing legislative advocacy services, policy consultation, intergovernmental relations assistance, networking and training, technical assistance and publications.
