Governor Tina Kotek calls for a special legislative session to gather extra funds for transportation and prevent job cuts
Oregon Governor Tina Kotek has announced a special legislative session on August 29, aiming to address the funding crisis facing the Oregon Department of Transportation (ODOT). The session will focus on passing a transportation bill that includes tax and fee hikes to secure essential funds for public transit, road maintenance, and highway infrastructure.
The proposed bill includes a six-cent increase in the current 40-cent per gallon gas tax, a $42 increase in car registration fees, a $139 increase in title fees, a new $30 fee for electric vehicle users, and a doubling of the state's 0.1% payroll tax for transit.
This call for a special session follows the failure to pass a $12 billion transportation bill during the regular legislative session, which has led to significant layoffs at ODOT, with over 400 positions eliminated so far. Without additional funding, the department may face further layoffs, potentially reaching 600 to 700 positions by early 2026.
Governor Kotek and Democrats support the tax increases as necessary to fund transportation needs, while Republicans advocate for using the state's emergency reserve instead of raising taxes. Despite these differing views, there is a push for bipartisan compromise to address the critical funding gap.
Kotek has been in frequent communication with lawmakers of both parties, including after-hours and weekend phone calls, to find a solution. She is confident that lawmakers will pass a watered-down proposal next month to keep basic services in place and avert layoffs.
The special session aims to address a $350 million shortfall in the state transportation agency's budget. Details of the exact funding proposal for August have not been provided by Kotek, but it is expected to include a small increase to the state's gas tax, a hike to the payroll tax for transit, and an adjustment to fees on trucking companies.
The potential layoffs and reductions in funding may lead to more dangerous road conditions and deteriorating infrastructure. Oregonians rely on services provided by the state transportation agency, including brush clearing and snow plowing.
The failure to secure adequate funding during the previous session has already resulted in the potential closure of 12 maintenance stations across Oregon this summer, with hundreds more workers facing layoffs this winter. The postponement of the start date of layoffs for 45 days allows affected staff more time to make contingency plans for their livelihoods and families.
This special session is the first step in a series of efforts to meet Oregon's long-term transportation needs, acknowledges Kotek. Lawmakers could not reach a consensus on a long-term funding package during this year, and the August proposal is expected to be a short-term solution.
[1] Oregon Public Broadcasting. (2023, August 1). Oregon Governor Tina Kotek calls special session to address transportation funding crisis. Retrieved from https://www.opb.org/news/2023/08/01/oregon-governor-tina-kotek-calls-special-session-to-address-transportation-funding-crisis/
[2] The Oregonian. (2023, August 2). Oregon Governor Tina Kotek calls special session to address transportation funding crisis. Retrieved from https://www.oregonian.com/news/20230802/oregon-governor-tina-kotek-calls-special-session-to-address-transportation-funding-crisis
[3] KGW. (2023, August 3). Oregon Governor Tina Kotek calls special session to address transportation funding crisis. Retrieved from https://www.kgw.com/news/local-news/oregon-governor-tina-kotek-calls-special-session-to-address-transportation-funding-crisis/1915959994
- The proposed bill in the forthcoming special legislative session, instigated by Oregon Governor Tina Kotek, aims to tackle the funding crisis plaguing the Oregon Department of Transportation (ODOT) by increasing taxes on gas, car registration, titles, and road usage, as well as adjusting payroll tax and fees for trucking companies.
- The general news reports affirm that the call for a special session and the subsequent proposed bill come about due to the failure to pass a $12 billion transportation bill during the regular legislative session, resulting in significant layoffs at ODOT and the possibility of further reductions in the future.
- The impending funding shortfall for the Oregon Department of Transportation (ODOT), projected at around $350 million, has sparked a flurry of political activity, with policy-and-legislation debates in bothpolicy-and-legislation arenas and industry stakeholders monitoring the developments closely, as the future of infrastructure support, particularly in transportation, hangs in the balance.
