PORTLAND — Oregon might have to pony up as much as $110 million this year to cover the federal share of highway work caught up in the deadlock in Washington over transportation and taxes.
The government has told states that in August it’ll start rationing transportation aid.
For years, gasoline tax revenues have been falling short of covering transportation spending — more-efficient vehicles use less fuel — and Congress is divided over what to do.
State officials tell The Oregonian that they have reserves to pay contractors and finish this construction season.
And they say contracts obligate the federal government to repay money for projects already approved.
But they say the bigger worry is next year: If the deadlock isn’t broken, the state will be cautious about putting projects up for bids.
