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flag Oregon avoids ODOT layoffs with $218M reallocation, but long-term funding issues remain.

flag Oregon’s Department of Transportation will avoid layoffs and major service cuts after lawmakers passed legislation to address a $297 million budget shortfall. flag The measure redirects $218 million from existing transportation funds to maintain highway maintenance, safety operations, and DMV services, though programs like Safe Routes to School and Connect Oregon will face reduced funding. flag ODOT’s spending is also cut by nearly $80 million, continuing prior cost-saving efforts that have left about 700 positions unfilled—nearly 15% of its workforce—since 2019, with over 350 vacancies due to staff departures since July 2025. flag The agency will begin hiring for critical roles while keeping over 130 positions open. flag Officials say the action provides short-term stability but does not resolve the long-term funding crisis facing Oregon’s State Highway Fund, with lawmakers planning to revisit transportation funding during the 2027 legislative session.

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