Oregonians sighed relief when the legislative session left the Transportation bill in committee lacking support. But instead of reforming ODOT, Governor Tina Kotek has officially called the Legislature back to Salem on August 29th to take another swing at a transportation package. Governor Kotek is pitching this as a way to stop layoffs and restore basic services, but the truth hasn’t changed: ODOT’s financial problems are not the result of revenue shortages--they’re really the result of long-term mismanagement.

Kotek released her Transportation Funding Proposal for the special session proposing the need for increased taxes all about the 2% slice of ODOT's massive budget that goes to road maintenance. That’s where the layoffs are coming from, and that’s where the public feels it most. Instead of addressing inefficiencies, the Governor insisted on immediate layoffs for 500 employees before the end of the biennium to create a crisis and sympathy for those families. Then, in response to public outcry, she extended layoff timelines to September 15th and called for a special session proposing taxpayers pay more to keep a broken system on life support.

Oregonians are seeing through the coercion and threats of layoffs to garner support. Holding 700 workers hostage to get legislators to vote for funding in the special session is coercion and illegal under ORS 163.275. Using her powers to threaten layoffs and then to delay layoffs exposes the lack of an emergency for the layoff announcement. For that reason alone, the unethical posturing should offend all legislators into a no vote. Proposing increases three or more years down the road without justification leaves Oregonians with a stanch in their nostrils.

The special session's focus hasn't just shifted from the comprehensive overhaul of the transportation system to securing immediate funds to prevent further service degradation and job losses, but it's raising over $538 million plus millions that hasn't been calculated, to plug a $325 million hole. There’s even a .1% payroll tax increase thrown in for good measure, which Kotek opposed when Salem voted it down.

To add a layer of polish, the plan includes some accountability provisions: a performance audit, a revamped advisory committee, and a project dashboard, but none of it changes the fact that this is yet another short-term fix to a long-term problem in terms of ODOT's funding model. Doesn't accountability include transparency? Kotek is focused on 50% of the 6-cents increase to pay for the deficit, but that is insignificant to the total tax proposed. How will the remainder be used? Recent U.S. Supreme Court Chevron case requires legislators to be explicit in authorizing non-elected agencies to administer laws. We don't yet know of a bill number or specific wording the Democrats will introduce, but it is unconstitutional for the Governor to submit a bill.

Kotek's proposed plan for the special session on August 29 will include more than necessary in these key elements:

• Gas tax increase: A 6-cent per gallon increase, raising the state's gas tax from 40 cents to 46 cents per gallon raising an estimated $144 million. The increase gas tax revenue would be split with 50% going to the state transportation department, 30% to counties, and 20% to cities.
• Vehicle registrations for MPG vehicles, mopeds and motorcycles will increase by $42 estimating over $260 million increase.
• Electric vehicle (EV) and 40+ high-MPG vehicles will also have a surcharge increased of $30.
• Base Title fees will increase by $139 for a total charge of $216, the surcharge will not change.
• Payroll tax dedicated to transit would double from 0.1% to 0.2% amounting to $134 million increase estimated.
• Road User Charge (RUC), a per-mile charge for electric vehicles and hybrids in the coming years.

Kotek makes the same mistake made in 2021 with over funding a 10-year plan and now the money is gone with very little to show for it. She states, "In order to take meaningful steps to modernize how we pay for transportation in the future, the RUC program, as envisioned in House Bill 2025, will be included with a delayed start date. Mandatory RUC would begin on the following dates for the following types of vehicles paying the RUC won't pay the supplemental registration fees:

• 7/1/27: Existing EVs
• 1/1/28: New EVs
• 7/1/28: Hybrids/plug-in hybrids

Besides these delays, tolling will be paused in previous transportation legislation, except for a replacement bridge on Interstate 5. She proposes delays in heavy vehicle rates increases to 2029 to address the imbalance in rates and do an update of the methodology that addresses the imbalance before the next Highway Cost Allocation Study.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

Kotek is confident that this plan will pass at the special session. Her proposal, when fully implemented is still the $11-15 billion tax increase originally introduced in HB 2025 that was totally rejected by Oregonians. Even with increased accountability, the Governor seems to be tone deaf. Oregonians have clearly stated - no new taxes. The unethical posturing should offend all legislators into a no vote. Proposing increases three or more years down the road without justification leaves Oregonians with a stanch in their nostrils. It's one thing to win a vote when it's fair and square, but unethical manipulation is illegal and everyone associated cannot hide from their public record.

House Republican Leader Christine Drazan (R-Canby) says, “The governor’s tax package is going to hurt struggling families. Oregonians will be paying more but getting less—no new lanes, no improved bridges, just higher taxes. House Republicans proposed using money from the state’s Legislative Emergency Board to protect maintenance and preserve essential jobs that keep our roads safe, but the governor rejected any plan that didn’t raise taxes. Her plan to cut maintenance workers was dangerous and wrong, and her push to raise costs at the pump is extreme and out of touch. She should listen to Oregonians, work across the aisle and pursue a measured approach to the transportation needs of the state without forcing the largest transportation tax increase in Oregon’s history.”

Much has been said about Republicans not showing up for the special session that would block any movement and potentially force some reforms. But this isn't just a Republican pushback. These tax increases will hit everyone living in Oregon. If you aren't hit directly by a tax, it will raise food prices, along with every thing transported to stores or online shipping. It will raise housing costs. Oregon is ranked fourth in the nation for under producing housing, and with an increased cost of transportation, Kotek is shooting herself in the foot. It's a good bet she has her eye on the kicker to fill the gap.


--Donna Bleiler

Post Date: 2025-08-10 12:55:46

Last Update: 2025-08-10 16:18:17