(1) Each year, the Department of Transportation shall determine the amount of funding allocated under ORS § 367.095 (4)(b) that is necessary to fund:

(a) Transportation projects specified by the Legislative Assembly by law;

(b) The matching moneys needed to spend federal funds;

(c) Highway maintenance activities;

(d) Programs that are more efficient to operate using state moneys; and

(e) Other purposes for which federal funds cannot be used.

(2) From state moneys described under ORS § 367.095 (4)(b) remaining after setting aside the funds necessary to meet the purposes described in subsection (1) of this section, the department shall allocate to local governments $35 million per year.

(3) The department shall replace any state funds made available to local governments under subsection (2) of this section with federal surface transportation funding on a dollar for dollar basis.

(4)(a) The department shall allocate the state moneys described in ORS § 367.095 (4)(b) under subsection (2) of this section to the following:

(A) Counties;

(B) Cities with a population of 5,000 or more and located outside the boundaries of a metropolitan planning organization, as defined in ORS § 197.629;

(C) Metropolitan planning organizations in urbanized areas with a population of less than 200,000;

(D) The League of Oregon Cities; or

(E) The Association of Oregon Counties.

(b) Moneys allocated under this subsection shall be used solely for uses that are consistent with Article IX, section 3a, of the Oregon Constitution.

(c) The distribution of moneys under this subsection shall be:

(A) Determined by agreement between the department, the League of Oregon Cities and the Association of Oregon Counties; and

(B) Provided to recipients through guidelines developed by the department.

(5) If less than $35 million of state moneys is allocated to local governments under subsection (2) of this section in a year, the department shall, to the extent possible, allocate, under subsection (4) of this section, federal surface transportation funding in an amount equal to the difference between $35 million and the amount of state moneys allocated to local governments under subsection (2) of this section.

(6) The department may adopt rules to carry out the provisions of this section. [2023 c.233 § 1]

367.098 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS Chapter 367 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

SHORT-TERM DEBT