Local officials, state workers, union leaders and truckers from across Oregon pushed lawmakers on Monday to better support the state’s roads by raising taxes and fees, while numerous individuals urged legislators to abandon a proposal that would do just that.
The funding plan, put forward by Gov. Tina Kotek, would increase the state’s 40 cents per gallon gas tax by 6 cents, hike title and registration fees, require electric vehicle users to pay per mile driven and double the state’s 0.1% payroll tax for transit, among other provisions.
The arguments laid out during a three-hour public hearing on Monday closely resembled those made during this year’s legislative session, during which lawmakers failed to pass a transportation package, prompting Kotek to call a special session scheduled to begin Friday.
Supporters of the proposal said it would help the Oregon Department of Transportation continue to maintain Oregon’s highways and bridges. After the legislative session ended in June, the agency said it would be forced to lay off hundreds of workers this year to address a $300 million budget gap unless legislators stepped in.
“We feel like we’ve seen our jobs, our livelihoods and our commitment to public service politicized, and frankly, a lot of us feel like we’ve been reduced to political pawns,” said Jason Lawrence, a union leader and employee at the state transportation agency. “Yet here we all are once again, with a chance to do the right thing.”
Opponents of the proposal agreed that maintaining roads and bridges across the state is vital, but they said lawmakers should shift existing state funds or find more cost-saving measures to keep the state transportation agency afloat. The proposal would raise nearly $5.8 billion over the next 10 years, most of which would be split between local governments and the state transportation agency, according to a state analysis.
“Gas is already expensive, groceries are through the roof, and paychecks don’t stretch like they used to,” said Aimee Reiner, a Clackamas County resident. “So what is Salem’s brilliant idea? Hit us with a $5 billion tax hike because nothing says ‘We care about working families’ like draining your wallet even more.”
Proponents of the bill asserted that higher taxes are necessary because the transportation agency’s main sources of funding for road maintenance — DMV fees, the gas tax and fees on truckers — have not kept pace with inflation or have dwindled in value amid a shift to more fuel efficient vehicles.
The agency’s budget has grown significantly in the past eight years, proponents of the bill acknowledged, but they said much of that extra money is allocated to pay off debt on major projects and could not be redirected to road maintenance or would cost the state matching federal funds if redirected.
“The Oregon Department of Transportation and our local government partners across the state are unable to perform many of the basic maintenance and operations functions needed to keep our roadways safe and projects moving forward without additional resources,” said Kelly Brooks, Kotek’s transportation policy adviser.
The vast majority of individuals who spoke on behalf of themselves, not for an organization, expressed opposition to the plan. As of Monday afternoon, nearly all of the 2,200 individuals who submitted written testimony appeared to oppose the bill.
“I’m asking you to deal with Oregonians in good faith,” said Angela Todd of Portland. “No new tax increases, fix the dysfunction with the billions you already have been given and deliver on the promises you’ve made.”
The proposal includes some measures to increase accountability at the state transportation agency. The department has come under fire in recent years for allowing major projects to balloon in cost and scope, among other issues. Most significantly, the plan would require a regular audit of the state transportation agency by the Secretary of State’s Office and restructure a group to oversee the agency’s major projects.
Top Democrats have said they are confident they can pass the package in the special session set to begin Friday. With supermajorities in both chambers, they could pass any tax-raising proposal along party lines with no Republican support. Although some Democrats have privately raised concerns about the proposal, none have publicly said they will not support it.
While some Republicans have expressed strong opposition to any tax increases, others have signaled some willingness to vote in favor of modest tax hikes.
In a move that could help convince some Republicans to support the package, leaders of the Oregon Trucking Association have now expressed support for the plan. The proposal includes several provisions that truckers have long advocated for, including a simplification of the state’s complicated tax system for truckers and steps to fix the long-running cost imbalance between cars and heavy vehicles.
“Transportation should not be a partisan issue,” said Eric Zander, chair of the Oregon Trucking Association. “We are not the Democratic Trucking Association or the Republican Trucking Association. We are the Oregon Trucking Association, and we wish our elected officials would stop playing politics and get a package like this across the finish line.”
The legislative transportation committee will hold another public hearing Friday before voting on the proposal, according to Senate President Rob Wagner, D-Lake Oswego.
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