Following Petition – Gas Tax Increase Paused, ODOT Funding Uncertain
SALEM, Ore. (KTVZ) — When the Oregon Legislature reconvenes next session, one of lawmakers’ top priorities will be how to fund the state’s transportation budget.
On Thursday, the governor’s office confirmed to KTVZ News that Oregon’s new gas tax and fee increases will be put on hold after a statewide petition gathered enough signatures to suspend the law. The measures will remain paused until voters weigh in during the November election, provided the Secretary of State’s office verifies all submitted signatures.
“Oregonians have exercised their ability to challenge actions taken by the legislature, and the Governor respects the outcome of that process,” said Roxy Mayer, press secretary for Governor Tina Kotek.
Mayer told KTVZ News the governor’s office is deeply concerned about how the Oregon Department of Transportation will be funded moving forward, especially as infrastructure challenges continue to grow across the state.
“Just last week, there was a rain-caused landslide north of the City of Siletz blocking traffic on Highway 229. ODOT crews are actively responding to the situation. This is why we need an adequately funded transportation agency to keep Oregonians safe,” said Mayer.
The announcement follows three Central Oregon Republican lawmakers' call for ODOT emergency funding on Wednesday, blaming crumbling rural roads. They predict voters will approve a petition repealing the new tax hikes and pledge to collaborate with ODOT on alternative funding.
Funding approved under the emergency bill signed by Governor Kotek is now suspended. According to the governor’s office, the delay could impact transportation projects statewide, and potential layoffs may begin.
“Republicans must now work with Democrats to find a different solution. The Governor is committed to working with lawmakers of both parties, ODOT leadership, stakeholders, and local leaders to find a path forward. The Governor’s guiding principle is to avoid, as much as possible, immediate service cuts that will impact Oregonians,” said Mayer.
This is a developing story.
KTVZ's Spencer Sacks will have a full report tonight on what this change means for Central Oregon.
