Oregon Senate Pushes Through Major Transportation Bill Despite Republican Opposition

There was a collective sigh of relief by Democratic lawmakers when the Oregon Transportation Funding Bill was finally passed by the Senate during a special session yesterday morning.

The bill will safeguard the jobs of hundreds of workers and ensure the maintenance of state roads and bridges.

The return to the chamber by Chris Gorsek assured Democrats of a majority vote. Gorsek had been unable to attend two previous sessions because of post-operative complications after back surgery.

Senate Rejects Republican Motion to Put the Bill to a Voter Referendum

While Democrat lawmakers celebrated the long-fought battle to raise additional funding for the state’s Department of Transportation (ODOT), opposing Republicans went into recess after the Senate rejected a motion to put the bill to a voter referendum.

One of the biggest victories associated with the safe passage of the bill is that the money it will raise will save the jobs of hundreds of ODOT workers who faced the threat of unemployment because of a $350 million budgetary shortfall.

Governor Tina Kotek, who was instrumental throughout the progression of the bill in both the House and the Senate, managed to delay staff layoffs until mid-October, saving hundreds of workers their livelihoods.

The Bill Will Generate $4.3 Billion Over the Next Decade

The bill will generate $4.3 billion over the next 10 years, financed by a six-cent-a-liter gas increase, increases in various DMV fees, and the introduction of a levy on owners of electric vehicles.

It will also double the statewide payroll from 0.1% to 0.2% for the next two years to raise sufficient funds to ensure the continuation of public transit services. Kotek says this is particularly important for the elderly and disabled.

Owners of electric vehicles will pay a Road Usage Charge (RUC), which will be implemented in stages. Owners of existing EVs will be liable for payment from July 1, 2027; new EVs from the beginning of 2028; and all hybrids from July 1, 2028.

The bill will raise $587.3 million over the next two years for the State Highway Fund. Half of that amount will be used to prevent staff cutbacks at ODOT, with the rest of the money divided in a traditional 50/30/20 split for the upkeep of state, county, and city roads.