Governor Kotek proposing gas tax, vehicle fee hikes to fill ODOT’s funding gap, head off major layoffs, service cuts
(Update: Adding video)
SALEM, Ore. (KTVZ) -- One day after calling a special session of the Oregon Legislature, Governor Tina Kotek laid out her proposals for a six-cent gas tax increase, as well as higher vehicle registration fees, to fill the Department of Transportation's funding gap and prevent major layoffs and service cutbacks.
Having called an August 29th special session and delayed ODOT's first round of layoffs for 45 days, the governor met with reporters and outlined the framework of legislation now in the works that she'll be proposing.
Vehicle registration fees would rise by $52 for the base fee and add a $30 supplemental fee for electric vehicles, while title fees would be increased by $139.
"Taken together, these fees pay for the ODOT budget in order to maintain basic services for Oregonians and prevent the layoffs of the workers that provide those basic services," Kotek said.
Kotek is also proposing a 1% increase in the transit districts' payroll tax, "to support struggling transit districts, specifically for transit in rural Oregon."
She also detailed several accountability steps, from a performance audit by the secretary of state and more legislative engagement on major projects and performance measures.
"In the weeks since the adjournment of the legislative session, my team and I have worked every day with legislators, local partners, and key stakeholders to zero in on a solution and a timeline for the legislature to come back together and address the state’s most immediate transportation needs," Kotek said.
"I have been abundantly clear: Oregonians rely on these basic services, from brush clearing to prevent wildfires to snow plowing in winter weather, and they are counting on their elected representatives to deliver adequate and stable funding," she added.
"I am confident that lawmakers will step up next month to avert these layoffs by approving the necessary funding for the state’s transportation needs. I appreciate their partnership and am eager to be on the other side of this crisis," the governor said.
Republicans already have expressed criticism of the plan to again seek tax and fee hikes (see news release below), but Kotek said she's hopeful of progress and a package being approved.
What's changed? "Sometimes, you just have to be able to focus on one thing," she said.
Kotek's full talking points can be reviewed in this Word document.
News release:
House Republican Leader Christine Drazan (R-Canby) released the following statement Tuesday in response to the governor announcing an August 29th special session to raise gas taxes on Oregonians after Democrats unsuccessfully attempted to pass one of the largest tax hikes in Oregon’s history:
“This could have been prevented if Democrats had come to the table and considered House Republicans’ alternative plan to fund ODOT by refocusing existing revenue instead of adding billions of dollars in new taxes on struggling Oregonians,” said Drazan.
“This could still be prevented today, without a special session, if Democrats made the decision to use existing revenue from the emergency board. We can still protect these jobs without raising taxes — and we should. Republicans have represented the voices of the people and fought hard to find solutions that don’t add new taxes. It’s now time for Democrats to do the same. We invite Democrats to join us in funding essential services without raising taxes, to stand with Oregonians who cannot afford to shoulder more costs.”
