In a dramatic turn of events, Oregon lawmakers concluded their legislative session without passing a transportation funding package that was crucial for maintaining and upgrading the state’s highways and bridges.
This failure marks a significant setback for Democrats, who had been planning for over a year to implement a range of tax and fee increases aimed at generating more revenue for the Oregon Department of Transportation and addressing the needs of local infrastructure.
In the final hours of the session, even a slimmed-down stopgap transportation package was not approved, which would have provided a fraction of the necessary funds compared to previous proposals.
Governor Tina Kotek had previously warned lawmakers that the Oregon Department of Transportation (ODOT) could face layoffs starting Monday if no stopgap funding was passed.
With the session ending just before midnight, lawmakers left without securing additional funds for crucial services, including public transit, electric vehicle infrastructure, and ongoing highway megaprojects.
Democrats held supermajorities in both chambers, providing them with the theoretical ability to pass tax increases along party lines.
However, they could not unify every senator to support the larger tax increase proposals.
As a result, House Speaker Julie Fahey, a Democrat from Eugene, formulated a smaller funding proposal in the waning days of the session.
This revised plan sought to increase the state’s gas tax from 40 cents to 43 cents and raise title and registration fees by $21 and $91, respectively.
It was projected to generate approximately $215 million per year beginning in 2027—a mere fraction compared to the originally proposed package that aimed to raise around $1.6 billion annually.
Acknowledging the limitations of the slimmed-down proposal, Democrats, including Governor Kotek, emphasized that passing it was better than taking no action at all, which would have resulted in service cuts and job losses at ODOT.
Kotek described the proposal as a temporary solution, stating, “No one is arguing that this solution is sufficient. It is a Band-Aid in every sense of the word.”
The governor also highlighted the adverse effect the inaction would have on communities that depend on state funding for local transportation needs.
Unlike earlier proposals that aimed to allocate meaningful funds for public transit and local governments, all revenue from this slim proposal would go directly to ODOT.
The agency had consistently voiced its need for an increase in funding to avert mass layoffs and cuts to essential services.
Local officials expressed frustration over the lack of support for their needs, emphasizing the importance of passing a comprehensive transportation package.
Community leaders warned against moving forward with a smaller proposal, urging lawmakers to take the necessary time to develop a more suitable solution.
Beaverton Mayor Lacey Beaty remarked during a public hearing, “Don’t pass this package. Don’t wrap a yes vote up with the justification that this is a noble act.”
Despite the local officials’ concerns, the House Rules Committee voted 4-3 along party lines to advance the slim proposal, with only Democrats in favor.
Republicans, who have criticized any tax increases this year, opposed the measure.
The Democrats needed bipartisan support to suspend legislative rules to bring the bill to the House floor.
However, they did not secure the required Republican backing, which ultimately rendered them unable to move forward with new transportation funding before the session’s conclusion.
The defeat of this transportation package demonstrates a significant political challenge for Oregon Democrats as they navigate the complexities of funding essential infrastructure improvements in the state.
image source from：oregonlive
