Oregon transportation officials would face borrowing limits and public review

The Oregon Transportation Commission would set a policy to guide highway borrowing, working with the State Treasurer. The policy would cover all forms of borrowing used to finance highway projects. The policy would cover borrowing limits, eligible projects, repayment, and financial risks. The commission would consult transportation committee leaders when developing or updating the policy. If enacted, this requirement would take effect upon passage. The commission would review and update the policy and report to lawmakers by January 31 of each odd-numbered year.

The Oregon Department of Transportation would need commission approval before asking the State Treasurer to issue bonds. The approval requirement would cover the department’s bond requests regardless of their size. The commission would give notice and allow public comments before approving, changing, or denying a request under the highway borrowing policy. For requests with at least $10 million in net proceeds, meaning money available from the bond sale, the department would send financial reports to the commission and transportation lawmakers. Reports would explain repayment, total costs, uses, funding sources, and effects on other projects. Failure to meet the reporting requirement would block commission approval and action by the treasurer. If enacted, these requirements would take effect upon passage. Reports would accompany requests and examine effects on other project funding for at least two two-year budget periods following the current period.

The Oregon Transportation Commission would have five voting members and two lawmakers who could not vote. Each of Oregon’s five transportation regions would have a voting representative. The governor would appoint voting members with Senate approval. No more than three could belong to one political party. Senate and House leaders would each appoint one lawmaker. Members could serve no more than two full terms. Membership rules would become operative January 1, 2027, and apply to appointments made on or after enactment. Current terms would end June 30, 2027; members could be reappointed to staggered terms starting July 1, 2027.

The Oregon Transportation Commission would revise its meeting rules and report to lawmakers on audits and projects financed by borrowing. Lawmakers would receive reports on transportation department audits and on debt-financed projects, including the kind of debt and its repayment source. The meeting rules would require the commission’s website to list each voting member’s email address. A process would ensure that upcoming decision materials are published with enough notice for public review before comment deadlines. Meeting rules would be revised by January 1, 2027, with a report by September 15, 2027. Section 16 would expire January 2, 2028. Audit and debt-project reports would be due by January 31 of each odd-numbered year.