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Yahoo
04-04-2025
- Automotive
- Yahoo
Oregon lawmakers unveil $1.9B transportation package amid ‘crumbling infrastructure'
PORTLAND, Ore. (KOIN) – Oregon lawmakers unveiled plans for a $1.9 billion transportation package on Thursday, amid concerns over deteriorating roads and bridges across the state. The Oregon Transportation ReInvestment Package was announced by Joint Committee on Transportation Co-Chairs Rep. Susan McLain (D-Hillsboro) and Sen. Chris Gorsek (D-Gresham), who said 'urgent action is needed this session' to build a stable transportation system for the 21st century. According to the co-chairs, Oregon's transportation systems 'are in crisis,' as more than 90 state-owned bridges have major structural issues, some school zones lack sidewalks and potholes go months without repair. The transportation co-chairs further that without sufficient funding, essential workers at transportation agencies will face layoffs, including jobs responsible for clearing traffic accidents, road striping, road repairs and plowing roads over winter. DON'T MISS: National Transportation Safety Board report shows concerns over bridge conditions in the Pacific Northwest Among the provisions in the $1.9 billion package are increases in fees such as the fuels tax, Department of Motor Vehicles fees, and road usage charges. Almost 90% of the investments in the State Highway Fund will go towards operations, maintenance and preservation efforts in state infrastructure, such as paving priority routes, restoring bridges and improving road and pedestrian infrastructure. Remaining funds will go towards previous projects under the last transportation package. TRIP includes a 20-cent per gallon fuels tax increase – starting with an eight-cent increase January 1, 2026, before transitioning to four-cent increases every year through 2032. The co-chairs noted that Oregon was the first state in the nation to impose a gas tax in 1919, which has since helped pay for state transportation. However, McLain and Gorsek argue that Oregon is facing 'modern transportation challenges,' such as increased freight traffic, a growing population, and a rapid increase in electric and fuel-efficient vehicles – which contribute less to the fuels tax. Instagram account of 'reckless' blue pickup driver strikes fear in Portland online community To ensure all drivers pay their share for road use, TRIP proposed a phased-in Road Usage Charge for electric vehicles. TRIP states that vehicles can enroll with the RUC program or pay a flat RUC annual fee. Once enrolled, EVs would no longer pay higher registration fees. Additionally, the proposal could bring higher DMV feed to Oregonians, including a $66 rise in vehicle registration fees and a $90 increase in title fees. The proposal also includes an over $16 increase for weight-mile fees. The package also seeks $486 million through a one-time system user fee on all vehicles at the time of purchase at 1% of the vehicle price. Lawmakers note that Oregon is one of five states that does not have this revenue stream. Oregon is doling out $11M in unclaimed funds. Here's how to find out if you're owed money Other investments would go towards infrastructure for buses, rail, bicycles and pedestrians — including $17 million to maintain Amtrak service levels and an increase in the state bike tax. The current bike tax stands at $15 per bike with a sale price of at least $200. The proposal suggests increasing the bike tax by $9.50 for a total $24.50 bike tax at the point of sale. According to TRIP, this tax would increase state revenue by about $1 million per year. Another 'key' part of the bill, according to the co-chairs: accountability. McLain and Gorsek said there is broad bipartisan support for oversight of the Oregon Department of Transportation to make sure tax dollars are used effectively. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now The package comes after a bipartisan group of lawmakers held a 13-stop transportation listening tour in 2024 to learn about local infrastructure concerns in places including Portland, Tillamook, Eugene, Medford, Bend and Ontario. Using those stops to frame TRIP, the transportation committee co-chairs highlighted the importance of increased investments. 'From public testimony in committee, to last year's statewide transportation listening tour, Oregonians have been clear that they want action, not delay,' Rep. McLain said. 'They want clean, safe streets. They want reliable public transit. They want to know the bridges their children cross every day are structurally sound.' Oregon Department of Education ends math, literacy programs after federal funding cuts 'Oregon TRIP is focused on the safety and maintenance of our roads, bridges and transit — not just for today, but for years to come,' Sen. Gorsek said. 'Inaction is not only irresponsible, it's dangerous. This framework is a starting point and we are looking forward to sitting down with stakeholders and our colleagues on both sides of the aisle to finalize a package this session.' Senator Gorsek added that investing in transportation will also give Oregon an economic boost. 'Bad transportation infrastructure is more than just an inconvenience, it harms Oregon's economy. Employees need to be able to get to work, businesses and truckers need to be able to move goods, students need to be able to get to school,' Sen. Gorsek said. 'At a time when everyday costs are already too high, we cannot afford to allow crumbling infrastructure to undermine Oregon's economy.' 'They've had enough': Clackamas County workers union vote to authorize strike in unprecedented move McLain and Gorsek said a team of external transportation experts are currently reviewing ODOT's project delivery and accounting practices with the Joint Oversight Committee on Transportation. Results from the review will be released in May and incorporated into the final transportation package. 'This framework is grounded in fairness and accountability,' Rep. McLain said. 'It ensures every user of the system pays their fair share and includes oversight from a bipartisan committee and independent transportation experts. But most importantly, it puts the focus where it's urgently needed: operations, safety, and maintenance.' In response to the proposed transportation package, the Oregon House Republican Caucus called for more accountability and less spending for 'ODOT's failures.' 'The Democrats' tone-deaf proposal throws more money at a system that has repeatedly failed to recognize that its core mission is to provide safe and reliable roads and bridges,' said House Republican Leader Christine Drazan (R-Canby). 'A dozen new taxes and fees is a slap in the face to all Oregonians that simply can't afford to pay more for less.' 'Since the beginning of this session, House Republicans have pressed ODOT on budgeting errors, incomplete projects, and mishandling of tax dollars,' said Rep. Shelly Boshart Davis (R-Albany), Vice Chair of the Joint Committee on Transportation. 'It's shocking that in spite of Oregonians' resounding rejection of the tire tax proposal, Democrats are doubling down on this tax at a time when families are already struggling to make ends meet.' Oregon Supreme Court allows class action lawsuit against Tillamook County Creamery Association to proceed The transportation package comes amid a budget shortfall at the Oregon Department of Transportation. In a statement to KOIN 6 News on Friday, ODOT Director Kris Strickler said the funding included in TRIP is necessary after 'historic underfunding' for the agency. 'Oregon's transportation system needs a sustainable funding source so Oregonians can travel safely across the state,' Strickler said. 'This framework outlines a necessary shift away from historic underfunding to sustainably fund the maintenance and operation of Oregon's transportation system.' In August of 2024, ODOT announced the agency was facing a $354 million budget shortfall — warning the agency could see large job cuts and significant increases in response times in some areas of the state if the agency doesn't receive needed funding in 2025. Feds crack down on illegal 'Portland Sunday Market' selling LSD, ecstacy and mushrooms ODOT discussed the potential budget shortfall during an Aug. 1 Oregon Transportation Committee , where ODOT representatives explained where the agency would stand if it does not receive a boost in funding, as first reported by OPB. 'We're looking at a budget shortfall with three main issues. We're seeing revenues start to flatten, and we expect them to decline at the same time our costs are going up. We were paying more for everything from paint to equipment to concrete and asphalt. And lastly, we are not able to move funds around,' ODOT Spokesperson Katherine Benenati previously told KOIN 6 News. During the meeting, ODOT Budget Manager Russ Casler said, 'We would be purchasing half of what we do today.' ODOT stressed that the reduced budget, potential job cuts, and decreased supplies could lead to slower response times, noting they're already operating under a lower level of service than is ideal. 'We would have to redistribute our resources and maintenance in a different way than we are today. This would mean we would not be doing a lot of things we are doing today,' said Casler. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
03-04-2025
- Automotive
- Yahoo
Oregon Democrats unveil $1.9 billion transportation funding plan
A woman walks a bike along Oregon Highway 99 in an undated photo. The Oregon Transportation Commission voted this week to spend $50 million to make state highways like this one more accessible to people walking or riding bikes. (Oregon Department of Transportation) This is a developing story and will be updated. Oregonians would pay more at the pump, higher fees when they buy a car or bike and see more money deducted from their paychecks to pay for transit under a wide-ranging plan released Thursday by Democratic lawmakers for filling a transportation deficit. The framework that Sen. Chris Gorsek, D-Troutdale, and Rep. Susan McLain, D-Forest Grove, released is the result of nearly two years of meetings and a statewide tour to hear about transportation needs. It comes as state and local transportation departments struggle to pay for basic maintenance like potholes and snowplows, let alone finish some major projects like the Rose Quarter highway improvement and Abernethy Bridge replacement in the Portland area. McLain and Gorsek's plan, shared early with the Capital Chronicle under the condition that the publication not seek comments from anyone else before 3 p.m. Thursday, aims to raise at least $1.9 billion in additional revenue per two-year budget cycle for the State Highway Fund, Oregon's main source of transportation funding, by the time a 20-cent gas tax increase is fully phased in, in 2032. Much of that increased funding would come through increases to the gas tax, vehicle title and registration fees and the weight-mile tax paid by truckers. Oregonians would also see more money deducted from their paychecks under an existing payroll tax to pay for transit, and all electric vehicles would gradually be enrolled in a now-voluntary road usage charge program meant to replicate what their drivers would pay for gas-powered cars. 'It's a big picture thing where we're resetting everything,' Gorsek said. 'But we're not going to say to the public, 'OK, we're going to fix the gas tax today, and it's going to go through the roof, or we're going to do EVs, and it's going to be through the roof right away.' The idea is to work these things into something that can keep us from getting where we are now in the future.' 'Where we are now' is a funding crisis years in the making, as gas tax revenues decline, inflation hikes construction costs and the state and local governments split transportation funding. The Oregon Department of Transportation predicted an immediate deficit of more than $350 million, with warnings that it may need to lay off nearly 1,000 employees. Without legislative action, the agency has warned, it will take longer to plow roads, open and close highways during fire season and fix potholes. The transportation co-chairs' proposed fix comes as Oregonians deal with higher prices on all kinds of goods and anticipate increased costs due to President Donald Trump's tariffs, the highest tax on foreign goods in generations. 'We're very conscientious about the cost of living and some of the experiences we've had economically, but it also costs money to do nothing,' McLain told the Capital Chronicle. 'And right now, we have maintenance, and we have preservation, and safety that all are the very pillars of what we've heard in our tour around the state.' The plan, which will be refined by the Legislature before it adjourns in June, includes raising Oregon's current 40-cent gas tax to 60 cents per gallon by Jan. 1, 2032. The biggest jump, to 48 cents, would happen Jan. 1, 2026, with 4-cent increases every two years until 2032. It would also add $66 to vehicle registration fees, which now run between $126 and $156 every two years. Titles, which cost about $101 to $116, would increase by $90. Electric vehicle drivers now pay more — $192 for title and $316 for registration — but their registration costs would go down as they enrolled in a road user charge program or paid a flat annual fee. The current road user charge program, OReGO, is a voluntary two-cent-per-mile fee, but lawmakers want to expand it to all electric vehicles. Existing EVs would be enrolled in the program by July 2026, newly purchased vehicles by July 2027, plug-in hybrids by 2028 and all new vehicles rated at 30 mpg or greater by July 2029. Additionally, McLain and Gorsek want to charge a one-time fee of 1% of the vehicle price when a car is sold. Oregon is one of only five states that doesn't currently have such a fee. Tolls, a tool lawmakers laid the groundwork for in their 2017 transportation package, are nowhere in the framework. Gov. Tina Kotek ordered a moratorium until 2026 on tolls, which the transportation department planned to use on Interstates 5 and 205 in and around Portland in part to pay for replacing the I-5 bridge connecting Oregon and Washington, and they're politically unpopular in Oregon, which has no toll roads. 'The governor didn't say no to tolls in the future, but that is not what is in the package currently,' Gorsek said. The current 0.1% payroll tax all Oregonians pay for transit would nearly double to 0.18%, adding an additional $268.6 million per two-year budget cycle. A 3% tax on tire sales would provide $50 million every two years to fund rail, wildlife crossings and salmon restoration. Bikes that cost $200 or more, which now carry a $15 tax, would see that rate increase to $24.50 per bike to provide $1 million per budget cycle for local paths and trails. 'There's no competition between transit, maintenance and finishing our promises,' McLain said. 'We have different streams of money available for stable, sufficient funding for all three.' McLain and Gorsek said they're confident in Oregon's ability to continue to receive federal transportation grants, despite directives from U.S. Transportation Secretary Sean Duffy that federal funding should go toward states with high marriage and birth rates, no vaccine or mask mandates and that are committed to working with the federal government to enforce Trump's immigration policy — all areas that don't apply to Oregon. 'I think what helps us is that this isn't just about Portland,' Gorsek said. 'This is about the West Coast, and the bottlenecks that we have in Portland for the whole I-5 system. There are comments about Oregon and Washington in terms of the Trump administration not being very happy with us, but this is really about the region and serious economic impacts if we don't fix this.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
