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The week observed: October 24, 2025

In a landscape often dominated by the noise of political personality, Joe Cortright offers a sobering, data-driven audit of a system in decay: the American transportation infrastructure. This week's observation from City Observatory cuts through the rhetoric of "progress" to reveal a stark reality where costs spiral, promises are broken, and the very technology sold as a climate solution is failing to deliver. For the busy professional trying to make sense of why their commute is getting worse while taxes rise, this is the essential reality check you won't find in the daily headlines.

The Reign of Error in Oregon

Cortright begins by exposing a pattern of financial mismanagement that defies basic accountability. He focuses on the Oregon Department of Transportation (ODOT), noting that despite assurances of improved oversight, the agency's mega-projects are becoming exponentially more expensive. The evidence is damning: a seismic bridge project in Salem has ballooned from a $60 million estimate in 2017 to a staggering $470 million today. Similarly, a proposed bridge in Hood River has doubled in price to $1.1 billion.

The week observed: October 24, 2025

Cortright writes, "Every major Oregon highway project routinely sees its costs double or triple." This is not a statistical anomaly; it is a systemic feature. He argues that the agency's financial crisis stems not from a lack of revenue, but from these chronic cost overruns that the agency refuses to acknowledge. The framing here is powerful because it shifts the blame from external economic factors to internal incompetence. It suggests that the problem isn't that we can't afford to build, but that we are being systematically overcharged for the privilege.

Critics might argue that inflation and supply chain disruptions are universal drivers of cost increases, not unique failures of state agencies. However, the sheer scale of the overruns—nine-fold increases—suggests a deeper issue with project scoping and estimation that goes beyond general economic trends.

The Accountability Deficit

The commentary then pivots to the federal level, drawing on insights from Beth Osborne of Smart Growth America. The core issue is a lack of leverage: the federal government hands out billions in highway funds with almost no strings attached regarding outcomes. Osborne's testimony at a recent panel discussion highlights the gap between legislative promises and on-the-ground reality.

As Joe Cortright puts it, quoting Osborne directly: "We've been told that we were going to get safer roads. Wrong. Lied. We were going to get better roads and bridges and they would be brought into a state of repair. Lie. We were going to get less congestion. Another lie." The repetition of "lie" is jarring, but it serves a vital function: it strips away the polite euphemisms of policy and forces a confrontation with failure.

Cortright emphasizes that the solution requires a hard reset on how funds are distributed. He notes that Osborne insists on a process where states must deliver results or lose their discretion. "At some point," she said, "We need a process that gives the people what they were promised or cuts off the funds." This argument is compelling because it treats transportation funding not as an entitlement for state bureaucracies, but as a contract with the public. If the contract is breached, the money should stop.

Simply writing checks and hoping for good things to happen hasn't worked.

The New York Paradox

Shifting to New York City, Cortright tackles the complex relationship between congestion pricing and long-term driving trends. While recent months have shown success in reducing congestion through pricing, a broader historical view reveals a troubling trend: vehicle miles traveled (VMT) have risen 16 percent between 2005 and 2023, even as the city's population grew by only 1.4 percent.

Cortright writes that this increase "has nothing to do with ride-hailing services like Uber and Lyft," debunking a common assumption. Instead, the data points to rising car ownership and household driving habits. This is a crucial distinction. It means that short-term pricing mechanisms, while effective, are fighting a losing battle against a structural culture of car dependence.

The report cited by Cortright recommends a three-pronged approach: investing in alternatives like bus rapid transit, changing incentives, and cutting subsidies for private car use. The logic is sound, but the political will to cut subsidies remains elusive. A counterargument worth considering is that without a massive, immediate expansion of reliable public transit, pricing alone may simply penalize low-income drivers without reducing overall traffic.

The Economics of Repair and the Hybrid Myth

Finally, Cortright addresses two pervasive myths: that new construction is the best way to create jobs, and that plug-in hybrid vehicles are a silver bullet for climate change. He cites a Good Jobs First report showing that rehabilitation projects actually generate more employment per dollar than new construction. "On federally aided highway resurfacing projects, each $1 billion generated 10,421 job-years of work, compared to 9,316 job-years for new highway construction," he notes.

This finding reframes the economic argument for infrastructure. Repair is not just about maintenance; it is a more efficient engine for job creation that keeps money in local communities. Furthermore, he points out that rehabilitation can be deployed quickly during economic downturns, whereas new construction often takes years to break ground.

On the technology front, Cortright dismantles the promise of plug-in hybrids. Despite the marketing, real-world usage shows that drivers rarely charge these vehicles, relying instead on their internal combustion engines. The result? "In reality, they generate about four times as much [carbon emissions]" as predicted by manufacturers. This serves as a stark warning against relying on technical fixes that ignore human behavior.

Bottom Line

Joe Cortright's analysis is a masterclass in cutting through bureaucratic obfuscation to reveal the hard truths of transportation policy. The strongest part of his argument is the relentless focus on data—showing that cost overruns, broken promises, and failed technologies are not accidents, but predictable outcomes of a system lacking accountability. His biggest vulnerability is the political difficulty of implementing the solutions he proposes, particularly the need to cut funds to states that fail to deliver. The reader should watch for how federal re-authorization debates evolve; if the "cut off the funds" threat becomes real, the landscape of American infrastructure will change forever.

Sources

The week observed: October 24, 2025

by Joe Cortright · City Observatory · Read full article

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What City Observatory Did this Week.

The Oregon Department of Transportation’s worsening reign of error. The cost of ODOT mega-projects continues to explode, blowing up the state’s budget. Despite claiming its becoming better managed and more accountable, ODOT megaproject budgets continue to spiral out of control.

Every major Oregon highway project routinely sees its costs double or triple. The latest instances are in Salem and Hood River:

The proposed Salem Center Street Bridge seismic improvement project has grown from an estimated $60 million in 2017 to $470 million now, a nine-fold increase.

A proposed Hood River Bridge across the Columbia River has doubled in price from $512 million to $1.1 billion.

Nearly three years ago, we described ODOT’s mega-project cost-excesses as a “reign of error.” But in the succeeding time, even as it claimed to care deeply about accountability and efficiency, the cost of every single major project has continued to increase. These chronic cost overruns, and not slow-growing revenues are the source of the agency’s financial problems--something they have yet to admit.

Must Read.

Federal transportation re-authorization needs to hold states accountable for results. The ENO transportation institute had a panel discussion about the potential up-coming re-authorization of federal transportation legislation. It heard from experts in transit, active transportation, and transportation policy. We were most struck by comments from Beth Osborne--newly designated president and CEO of Smart Growth America and Transportation for America.

Previously, she’s pointed out that transportation legislation has tended to provide token categorical support for non-highway modes, while allocating most funds to state highway agencies with no accountability. The result is we get either nothing, or just more of the same for our transportation investment:

When Osborne was asked whether the federal government should prescribe specific uses for transportation funds or allow states greater discretion in how they use federal funds, she responded emphatically and passionately, “We’ve been told that we were going to get safer roads. Wrong. Lied. We were going to get better roads and bridges and they would be brought into a state of repair. Lie. We were going to get less congestion. Another lie.

She reminded the webinar attendees that accountability was one of her primary concerns. “At some point,” she said, “We need a process that gives the people what they were promised or cuts off the funds. And we can do that by telling the states, ‘You go ...