With Gas Near $5, Oregon Governor Says Transportation Tax Increases Are a ‘Tough Sell’
As gas prices spiral amid Middle East tensions, Oregon Governor Tina Kotek admits that getting the public’s approval at the polls next month for the new transportation tax package will be ‘a tough sell.’
Addressing a news conference on Thursday, Kotek said she knew that Oregonians were ‘feeling the pinch’ on household budgets, adding that the federal government should lower taxes to ease gas pump prices.
Funding Package Proposes to Raise Gas and DMV Prices, and State Payroll Tax
Earlier this year, and before the U.S. attack on Iran, Democratic state lawmakers managed to pass a funding package hotly contested by Republicans.
Sources: AAA Oregon/Idaho / Oregon Measure 120 explanatory statement / ODOT HB 3991 page
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The funds will address Oregon’s dilapidated transportation network by raising gas prices by 6 cents a gallon, and increasing DMV fees and payroll taxes.
According to the American Automobile Association, at $4.99 a gallon, Oregon has the fourth-highest gas price nationwide.
However, Kotek confirmed that she was unable to suspend gas taxes. She believes the Trump administration should take responsibility for the problems it has created in the Middle East, which has resulted in increased gas prices.
No Matter the Outcome of the Public Vote, Oregon Must Find a Funding Solution for ODOT
The governor told the press that, irrespective of the outcome of the public vote on increased taxation next month, Oregon must find a solution for the lack of sufficient funding for the Department of Transportation (ODOT).
In an attempt to resolve the dilemma, Kotek met with transportation experts to develop a long-term strategy. The work group must make recommendations on strategies to overcome financial shortages for ODOT.
ODOT received a $242 million cash inflow from lawmakers during the last legislative session, but its 2027 and beyond is looming without a clear financial strategy in place.
When Oregonians go to the polls on May 19, they will decide whether or not to support higher taxes to save a crumbling transportation network.