Oregonians Could Pay More at the Pump and DMV as Kotek Tries to Save State Transportation Jobs
The Governor of Oregon yesterday announced a funding proposal to save hundreds of Oregon Department of Transportation (ODOT) jobs in jeopardy, following the federal government’s cutback on financing that is crippling maintenance and project programs.
Tina Kotek has called a special session of the legislature on August 29 to address the crisis situation in which ODOT finds itself because lawmakers failed to reach consensus on a funding package during their last session.
A Funding Package Could Save Hundreds of Jobs
Apart from hundreds of people losing their jobs, the budget shortfall at ODOT has also led to the closure of maintenance facilities and a reduction in transit services.
ODOT has already announced that the first round of layoffs will begin in mid-September, followed by a second staff cutback early in 2026 unless additional funding can be found.
Apart from people losing their jobs, ODOT has also warned that a lack of financing will lead to delays in emergency services and road maintenance across the state.
Gas Tax Will Increase by 6 Cents a Gallon
Yesterday, Kotek revealed her proposal to salvage a funding package. Payroll tax will be doubled from 1% to 2% and will finance transit services via the Statewide Transportation Improvement Fund.
This funding will ensure that transit services are maintained. Payroll tax is paid by employers as a deduction from wages and salaries.
Other fundraising proposals by Kotek are:
- Gas tax increase of cents a gallon, raising the pump price to 46 cents a gallon.
- Vehicle Registration increase from $42 to $85.
- Title fees increase from $139 to $216.
- Additional increases for high-mileage and electric vehicles.
Half of the revenue from the gas tax, vehicle registration fees and title fees, will be funneled to ODOT to avoid job cutbacks, service cuts, and the closure of 12 maintenance facilities. Counties and cities will receive the remaining funds.
The Governor is also proposing a mandatory Road User Charge for electric vehicles to be introduced in 2027, with hybrids and plug-in hybrids added in 2028.
The Governor also proposes increasing surcharges.
Cars that consume one gallon of gas for every 40+ miles per gallon will rise from $35 to $65. The electric vehicle surcharge will increase from $115 to $145.
Registration fees for mopeds and motorcycles increase from $44 to $86, while registration of utility trailers and low-speed vehicles will increase by $42, raising the base price to $105.