With just three weeks to go until lawmakers return to Salem for a special session to vote on funding to avert layoffs at the Oregon Department of Transportation, and which some lawmakers have hinted could go longer than a single day, Gov. Tina Kotek confirmed what she is asking the Legislature to approve.
The governor said in an Aug. 7 press release she is asking lawmakers to approve increases to the state gas tax, registration and title fees, and a new Road Usage Charge program to avert layoffs at ODOT and provide additional funding to the state's transportation system.
The actual text of the bill has not been released, nor have official revenue estimates. Rep. Dwayne Yunker, R-Grants Pass, shared a draft of the measure on X on Aug. 7.
The special session, called by the governor on July 22, will bring lawmakers back to Salem on Aug. 29 to pass a transportation package after efforts during the 2025 session failed. Some lawmakers indicated the special session could extend into the Labor Day holiday.
Layoffs and maintenance station closures at ODOT, scheduled to go into effect on July 31, have been delayed until Sept. 15.
Kotek began layoff procedures for 483 ODOT workers July 7. An additional 449 vacant positions were set to be eliminated and closures were announced for 12 maintenance stations around the state.
What cost increases is Gov. Tina Kotek proposing for the transportation special session?
Kotek's proposal released Aug. 7 is substantially the same as what she previously told reporters in a July 23 press conference.
Kotek's plan aims to to address "immediate needs" and provide "adequate funding" for the 2025 to 2027 budget cycle.
Here is what the proposal would do:
Increase the gas tax by 6 cents per gallon for a total of 46 cents per gallon
Increase vehicle registration fees by $42 with an additional $30 surcharge for electric vehicles
Increase title fees by $139 for a total base fee of $216
Double the payroll tax that funds public transit from 0.1% to 0.2%
Revenue would be split 50-30-20 between ODOT, counties and cities. The payroll tax would go to the Statewide Transportation Improvement Fund.
A road usage charge would be applied to electric vehicles in phases.
Starting July 1, 2027, existing electric vehicles will be incorporated into the program, with new EVs added beginning Jan. 1, 2028 and hybrids included as of July 1, 2028.
The road usage charge was included in HB 2025 and was 5% of the gas tax per mile or an annual $340 flat fee. The $30 surcharge will not apply to those in the road usage charge program.
The proposal also includes accountability measures from HB 2025, including a performance audit of ODOT by the Secretary of State’s Office and increased legislative reviews.
It would also take some references to tolling out of the existing statute, created in House Bill 2017.
The proposal calls for an updated plan on how to calculate what different types of vehicles should be paying for their share of the road.
The rates heavy trucks are paying would stay the same until 2029.
Beginning in 2030, the state economist would have the authority to adjust an imbalance in what light and heavy vehicles pay if the legislature did not fix it. The economist's adjustments would be revenue neutral.
"This proposal doesn’t solve all the funding challenges facing our statewide transportation system, but we have an opportunity with this legislation to keep Oregon on a path toward a fair and stable funding system that puts safety first," said Senate President Rob Wagner, D-Lake Oswego, in a prepared statement.
How long will the Oregon Legislature special session for transportation funding last?
Lawmakers will be congregating in the Senate for the special session as construction continues inside the Capitol.
Newsletters from a couple senators indicated the bill could be under consideration past Aug. 29 and into the Labor Day holiday.
"Since the bill before the Legislature for special session will be a revenue bill, it must start in the House of Representatives. Accordingly, the Senate will not convene until Labor Day, September 1," said Sen. Floyd Prozanski, D-Eugene, in his Aug. 4 newsletter.
"The Oregon Senate will convene on Monday, September 1st to conclude with a solution," said Sen. Janeen Sollman, D-Hillsboro, in her newsletter on July 25.
In a text, vice chair of the Joint Committee on Transportation during the 2025 session, Rep. Shelly Boshart Davis, R-Albany, said "no one should expect a one-day session" and voiced her opposition to the proposal.
"The governor has called a session for a holiday weekend with no Republican support and opposition from Oregonians who can't afford more taxes," Boshart Davis said.
Hours after the session ended without a transportation package, Kotek told lawmakers "I don't care what your vacation plans are, we are going to solve this."
The last special session, held in December 2024 to pay off wildfire bills, lasted only a single day.
The bill will need a supermajority of support, the exact margin Democrats have in each chamber.
A transportation package and a smaller, last-minute proposal failed during the regular session after Republicans blocked a procedural move to advance the bill and after at least one Democrat in the Senate voiced opposition.
"The more specific and clear and united a plan we have, the easier it is to get in and out of a session," Rep. Paul Evans, D-Monmouth, told the Statesman Journal in July. "Because the only worse thing than what people saw this time is if you get into a special session and don't have the votes to get out."
Dianne Lugo covers the Oregon Legislature and equity issues. Reach her at [email protected] or on X @DianneLugo
Anastasia Mason covers state government for the Statesman Journal. Reach her at [email protected] or 971-208-5615.
This article originally appeared on Salem Statesman Journal: What to know about Oregon special session for transportation funding
Comments