Hillsboro stands to lose road maintenance dollars if Oregon lawmakers fail again to fix the state's transportation funding crisis.

Earlier this week, a bipartisan workgroup met in Salem to start building a package they hope will finally pass in the 2027 legislative session.

Rep. Susan McLain, D-Forest Grove, whose district includes Hillsboro, told the 12-member panel that after what she described as thousands of conversations across Oregon, the same priorities kept surfacing: safety and a stable budget.

McLain, who chairs the House Transportation Committee, said funding shortages have already forced cuts to Safe Routes to School and delayed maintenance projects statewide.

The stakes are direct for Hillsboro. Under Oregon's highway fund distribution formula, roughly half of gas-tax revenue flows to cities and counties for local roads.

With the state highway fund having lost about 27% of its purchasing power since 1998, according to ODOT budget projections presented to the workgroup, that means fewer dollars reaching Hillsboro and Washington County each year.

Lawmakers tried and failed to pass a long-term transportation funding solution in the 2023 regular session and the fall 2025 special session.

They now face a third attempt in January 2027. In that 2025 special session, Democrats passed a $4.3 billion, decade-long plan that included raising the gas tax from 40 to 46 cents per gallon and nearly doubling vehicle registration fees.

Sen. Bruce Starr, R-Dundee, and anti-tax advocates gathered nearly 200,000 signatures to refer the plan to voters as Measure 120. Voters rejected it in the May 2026 primary.

Gov. Tina Kotek then launched her "Rebuilding Our Transportation Vision" workgroup, co-chaired by Grace Crunican and former Republican House Speaker Bruce Hanna.

The group held its first meeting May 1 and meets monthly, with final recommendations due to Kotek before the end of 2026.

What happened Tuesday

Seven lawmakers attended the workgroup's third meeting at the Association of Oregon Counties office: six Democrats and Starr, the only Republican among them.

"I'm really hopeful that the work that you'll do will help to inform a bipartisan consensus-based package that comes forward potentially, but let's not kid ourselves about the challenges facing us," Starr told the group.

Umatilla County Commissioner Dan Dorran, a workgroup member, said Starr's optimism "set a tone for the further discussions of bipartisanship."

Lawmakers agreed a new package should not commit to projects before having accurate cost estimates, citing overruns on the I-5 Rose Quarter and I-205 Abernethy Bridge projects. Starr also floated restructuring ODOT itself, questioning whether DMV and the rail division belong inside the agency.

What's at stake without a deal

ODOT documents warn the state may only be able to pave interstate highways beginning in 2027 under current funding, and 15 to 20 DMV offices could permanently close. The agency carried a $242 million budget gap as of February 2026, with 700 positions already vacant and remaining workers shouldering two to three roles, according to Interim Director Lisa Sumption's testimony to lawmakers.

The workgroup's next meeting is scheduled for Friday, August 7, and will be held virtually. Residents can follow the process through the governor's office at oregon.gov/gov.