Oregon state Senators on Sept. 29 approved a transportation funding plan estimated to generate $4.3 billion in new revenue over the next 10 years. The bill increases the state gas tax by six cents-per-gallon, raises vehicle title and registration fees, temporarily increases the state payroll tax for transit funding, and requires electric and hybrid vehicles to participate in Oregon’s road usage charge program.
The bill’s passage followed a series of lengthy delays after lawmakers failed to reach an agreement by the June 27 regular session deadline, jeopardizing employment for over 500 state transportation employees. In response, Gov. Tina Kotek (D) called a special session in late-August, during which the Democrat-led House passed a compromise bill along party lines.
In the Senate, the absence of Sen. Chris Gorsek (D-Gresham), who was recovering from surgery, prevented Democrats from securing the full attendance needed to approve the measure without Republican support. The Senate postponed the vote twice to accommodate his recovery, ultimately reconvening on September 29 to pass the bill. It now heads to Gov. Kotek for final approval.
To reach the compromise, lawmakers removed a provision that would have tied future gas tax increases to inflation, reduced the amount of the state gas tax increase, and created a sunset date for the payroll tax hike included in the original proposal.