The Week Observed: September 5, 2025

What City Observatory Did This Week

Ten things to know about the transportation package. Oregon's Legislature met in special session over the Labor Day weekend to develop a new transportation package, now known as HB 3991. The $4.3 billion bill is in limbo as the Senate struggles to assemble the votes needed to pass it. While everyone is waiting, we have a summary of the issues that this package raises.

1. Cost Overruns - ODOT's financial problems stem from mega-project cost explosions, like the Abernethy Bridge tripling to $815 million and Rose Quarter quadrupling to $2.1 billion.

2. No Maintenance Requirements - HB 3991 contains no language requiring new revenue go to actual maintenance and operations rather than mega-projects.

3. Borrowing Against Future Revenue - ODOT can use debt to divert new tax revenue to fund mega-project overruns, having already borrowed $271 million this way.

4. No Real Accountability - Proposed oversight measures mirror previous failed attempts like task forces and dashboards that didn't prevent cost overruns.

5. False Maintenance Priorities - ODOT claims to prioritize maintenance over expansion but historically does the opposite after securing funding.

6. Misleading Spending Comparisons - ODOT's claims that Oregon spends less on transportation than other states are fabricated and inaccurate.

7. Diverting Existing Funds - ODOT has repeatedly moved operations and preservation money to cover mega-project costs like the Abernethy Bridge.

8. Revenue Hasn't Declined - Motor fuel tax revenue actually increased $97 million over five years, contradicting ODOT's revenue decline claims.

9. Hidden IBR Cost Estimates - ODOT is concealing new Interstate Bridge Replacement costs likely reaching $9-10 billion, with Oregon owing $1-2 billion more (see next commentary).

10. Rose Quarter Deficit - The Rose Quarter project faces a $1.5 billion shortfall but ODOT continues construction despite state analysis showing completion may be impossible.

Watch out for a $10 billion price-tag for the. Interstate Bridge. Even as it moves forward with this $4.3 billion "band-aid"--legislators are due for yet another multi-billion dollar surprise, as IBR is once again delaying releasing a new cost estimate for the Interstate Bridge Project. It's an ominous sign that the cost is going to be much, much higher.

IBR leaders have known since January of 2024 that costs were going to be even higher--but repeatedly they've delayed releasing a new estimate.

In testimony to the Portland City Council project director Greg Johnson announced that there would be yet another delay, until late 2025 or early ...