Transportation Taxes and What Comes Next

Kevin Neri/Statesman Journal

Over the past two weeks our office has continued to hear a steady stream of questions, concerns, and general uncertainty from constituents about the transportation taxes and fees in HB 3991 that were signed by the governor in November. Given the volume of ongoing dialogue, we wanted to provide a brief update. The referendum effort opposing those tax increases has publicly stated that it has gathered more than enough signatures to qualify for Oregonians' November 2026 ballot. If the Secretary of State ultimately verifies those petitions, implementation of the new taxes would be paused—an outcome agencies and budget writers must now factor into their planning, even as the process plays out.

This uncertainty arrives at the same time Oregon economists released a fourth-quarter economic and revenue forecast for the state. Oregon’s projected budget deficit fell form nearly $400 million to closer to $60 million, a shift in the right direction from the previous forecast. While that offers a slightly better outlook on paper, the underlying labor-market data remains soft, and agencies are still preparing for the likelihood of targeted reductions during the February and March Short Session. The improved numbers don’t eliminate the need for difficult decisions, they just narrow the size of the gap.

Adding to the complexity is a growing effort among some in the majority party to debate whether Oregon should “disconnect” from the federal tax code, meaning Oregonians could miss out on the benefits of H.R. 1 (the One Big Beautiful Bill Act). For context, those federal provisions are estimated to save the average Oregon taxpayer $3,157 in 2026, through measures such as deductions for tips, overtime pay, and vehicle-loan interest; an increased and inflation-indexed Child Tax Credit; a new senior deduction; a permanent 20% qualified business income deduction; and restored full bonus depreciation for capital investment. Democrats are contemplating disconnection so they can retain those extra tax revenues, helping to offset Oregon's slowing business economy.

Final decisions for what we can expect from February's short session won't really be known until the next revenue forecast is released on February 4th of next year. At a minimum, the conversations in our budget subcommittees are very geared toward preparing priority lists for cuts, something Oregon agencies haven't faced in recent history, and should make for a very interesting short session in February.

On a lighter note to close out this introduction, the photo you see above is from the Grand Tree Lighting Ceremony at the Capitol earlier this week, which was the first such Christmas celebration at the Capitol since 2019! Turnout seemed strong, with a big stream of members of the public walking the festively decorated halls of the Capitol, many of which for their first time. Events like this have been sorely missed during the years-long construction project, and it's great to see these wonderful traditions slowly return to create a better sense of normalcy.

This week we're proud to honor Lebanon High School’s Warrior Battalion, who delivered an outstanding performance at the first Cascade Mountains JROTC Competition League drill meet of the season by earning second place overall, while simultaneously hosting nearly 400 cadets from 11 visiting schools! From drill and air rifle to physical fitness events, LHS cadets impressed judges, instructors, and fellow competitors alike. The League Chairman even praised the Warrior Battalion as the gold standard for how future league events should be organized—a major compliment to the cadets who planned and executed much of the meet themselves.

Program instructors Sgt. Major (Ret.) Christian Watts and Lt. Col. Tom Clifford highlighted the cadets’ discipline, leadership, and exceptional conduct throughout the full-day competition, calling them exemplary representatives of LHS and the Lebanon community. The Warriors are currently ranked second out of 16 teams, so please join us in wishing them luck in their next competition happening tomorrow in Walla Walla, Washington!

Do you know of anyone in House District 11 who deserves to be acknowledged? Send us your nominations at Rep.JamiCate@oregonlegislature.gov

Map Released for Brownsville's Home for the Holidays

A final reminder that Brownsville's annual Home for the Holidays celebration kicks off today and concludes tomorrow! In case you missed it, the city will come alive with festive lights, family activities, and plenty of small-town holiday magic. The Brownsville Women’s Study Club will host the beloved Festival of Trees throughout the weekend, and the Chamber’s annual Tree Lighting returns tonight at 6:00 p.m..

With craft bazaars, community events, and holiday cheer filling downtown, it’s the perfect way to kick off the season and enjoy the warmth of a hometown celebration!

Halsey Breakfast & Christmas Light Parade Tomorrow

The Halsey-Shedd Rural Fire Protection District cordially invites you to both its annual Winter Breakfast benefitting Meals on Wheels tomorrow morning from 6:30 a.m. to 10:30 a.m., as well as it's Christmas Light Parade in the evening! Staging for the parade begins at 5:00 p.m. and the event officially kicks off at 6:00 p.m. at Central Linn Elementary School. After that, you can enjoy chili at the Halsey Fire Station, so don't miss out on some local holiday fun!

Lebanon Downtown Historical Walk Tomorrow

Interested in learning about some amazing Lebanon history? Excitement is growing for tomorrow's Downtown Historical Walk Tour held jointly by the Lebanon Museum Foundation, Build Lebanon Trails, and the Lebanon Downtown Association! One of the standout stops will be the iconic Masonic Lodge, where participants will get a rare chance to explore the upstairs of this historic landmark. It’s a unique opportunity to dig into the building’s rich past, hear stories you won’t find in the history books, and get answers to all your burning questions!

The tour begins at 1:00 p.m. at the Old Town Mall, so come join the fun!

Wreaths & Gingerbread Craft Day in Sweet Home

The American Legion invites you to the former Fir Lawn Lutheran Church tomorrow, December 6th in Sweet Home for a day of festive crafts! Materials are provided ($20 per wreath and $15 per gingerbread house), and you're encouraged to bring the whole family and collaborate with others from 11:00 a.m. to 4:30 p.m.. This is also a great way to build your perfect gingerbread house ahead of the Chamber's Gingerbread Competition the following week, so don't miss out!

Jefferson Fire District Cookie Decorating & Cocoa Event

The Jefferson Fire District is opening its doors for Cookie Decorating & Cocoa with Chief Eckhardt tomorrow, December 6th from 10:00 a.m. to 1:00 p.m.! This fun event will feature a coloring competition, prizes, fire station tours, and it's all FREE, so bring the whole family and meet some amazing members of the local community that help keep everyone safe.

Sweet Home Parade of Lights Next Saturday

Jefferson Christmas Parlor Tours Next Saturday

Join the Greater Jefferson Community Center for a tour of some historic homes that have been beautifully decorated for the Christmas season! The three-hour tour begins at the community center on December 13th at 1:00 p.m. and is $5.00 per person. They'd also like to remind you that the Holiday Light Parade follows at 5:30 p.m., so don't miss out on all the fun while you're in town!

Cascade Christmas Lights Display in Lebanon Begins

Lebanon’s beloved Cascade Christmas Lights display is officially underway, lighting up the season with more than 60,000 synchronized LED lights, a musical soundtrack broadcasted on 100.9 FM, and an animated Snowman MC that delights visitors of all ages! Running nightly from now through the new year, the show operates from 6–11 p.m., offering families a dazzling, computer-choreographed holiday experience that has been a community favorite since 2010. As always, they are accepting warm clothing and cash donations for the Lebanon Soup Kitchen.

With new surprises and additions for 2025, this year’s display promises to be one of the most memorable yet for anyone making the drive to enjoy the lights! 

Oregon transportation tax hikes likely headed to November 2026 ballot for voter decision

KGW

A Republican-led petition effort has reportedly gathered more than 160,000 signatures to refer Oregon's recently passed transportation bill to voters, potentially putting gas tax and vehicle fee increases on the November 2026 ballot.

4 Oregon counties must submit to ICE subpoenas on 9 noncitizens, judge rules 

The Oregonian/OregonLive

Four Oregon counties must comply with administrative subpoenas issued by U.S. Immigration and Customs Enforcement to help the agency identify and locate nine noncitizens subject to detention or deportation under federal law, a judge ruled Monday. U.S. District Judge Michael J. McShane’s ruling applies only to the subpoenas he examined in this case. McShane found that while the state sanctuary law prohibits state and local officials from using state resources to support federal immigration enforcement, Oregon law expressly allows a state law enforcement agency “to exchange information” with federal immigration authorities on criminal investigations, U.S. District Judge Michael J. McShane said in an eight-page opinion … McShane found the ICE subpoenas are legally enforceable and that federal and state laws do not conflict. ICE filed a petition Oct. 1 seeking limited and “patently reasonable” information and documents directly relevant to immigration enforcement involving the nine people, McShane said. Four counties – Multnomah, Clackamas, Washington and Marion – have control and custody of the information and must turn it over, he ruled.

Oregon commits $7.5 million in emergency funding to Planned Parenthood centers

KLCC

The Oregon legislature’s Emergency Board has committed $7.5 million to Planned Parenthood. The funding is in response to the Trump administration’s reconciliation bill, HR-1, which blocks patients with Medicaid from using their coverage for care at the reproductive health centers. At a press conference in Salem on Wednesday, Democratic lawmakers joined medical and advocacy leaders to applaud the state’s move. Meanwhile, Oregon House Republicans criticized the emergency funding, calling it “political posturing.” Rep. Lucetta Elmer, R-McMinnvillle, condemned the decision in a press release Tuesday, saying Oregon doesn’t face a gap in access to reproductive health care services without Planned Parenthood. She argued there are 270 Federally Qualified Health Centers (FQHCs) which provide “non-abortion reproductive health care services locations across the state.” In a recent analysis, the Oregon Health Authority determined that “state support is necessary to prevent the closure of Planned Parenthood health centers and to sustain access to reproductive health care for OHP members.” OHA recommended $10 million in emergency funding from the state, though the final allocation was $7.5 million.

State economist gives insight into Oregon’s slowing economic reality

Oregon Capitol Chronicle

Oregon’s economic activity is declining, population growth is slowing and unemployment is rising — all at a faster pace than the U.S. While the state’s economy is slowing down, there’s hope for moderate growth in 2026, State Economist Carl Riccadonna told lawmakers this week. An economic upturn in 2026 is possible as interest rates are on the decline, which usually spurs home buying, business investment and vehicle sales, he said. Tax cuts for businesses from a new law President Donald Trump signed in July will also likely stimulate more economic movement, he said. A pending U.S. Supreme Court ruling could cut Trump’s tariffs in half, which would be good news for Oregon, Riccadonna said. Oregon is leading the lawsuit challenging the Trump administration’s tariffs. The Oregon Department of Justice earlier this month argued the case before the U.S. Supreme Court. “If the Supreme Court rules against the tariffs… It’s a tax cut nationally that would be worth about $200 to $250 billion, or here in Oregon a tax cut of probably  $2-3 billion,” he said.

Oregon income growth slows, falling behind the nation — and inflation

The Oregonian/OregonLive

Oregon’s income growth has slowed markedly over the past two years, raising financial pressures as the state faces a range of economic headwinds. Oregon’s income grew far faster than the rest of the nation in the aftermath of the Great Recession, a boom time for the state as new industries and highly educated migrants fueled an economic surge. Oregon downshifted during the pandemic, though, and is now spinning its wheels. The state’s median household income was just shy of $90,000 last year, an increase of just 1.1% from the year before and about $6,000 above the U.S. median, according to recently released Federal Reserve data.

Many of Mayor’s Emergency Shelter Beds Are Unoccupied Every Night

Willamette Week

Data released by Mayor Keith Wilson’s office last week shows that over half of his emergency shelter locations are struggling to reach 50% occupancy on any given night. The release of the data comes as critics, including some members of the Portland City Council’s progressive caucus, question both Wilson’s shelter strategy and his decision to reinstate the city’s camping ban, which has so far this month resulted in dozens of shelter placements, along with dozens of arrests on outstanding warrants unrelated to camping. Three of the mayor’s shelters failed to reach 50% occupancy in the fall months, the data shows: St. Stephen’s Church in downtown Portland, Central Church of the Nazarene in Southeast Portland, and the SAFES Shelter run by the Salvation Army on W. Burnside Street. Three other shelters exceeded 50% occupancy in all months documented in the data, including the Northrup Shelter in the Pearl District and the Moore Street Shelter in North Portland.

Critical NW pipeline fixed after leaking thousands of gallons of fuel

The Oregonian/OregonLive

Nearly 2,300 gallons of fuel have been recovered from a blueberry farm near Everett, Washington after a leak from BP’s Olympic Pipeline this month. The pipeline carries gasoline, diesel and jet fuel. A leak cut off the jet fuel supply to Seattle-Tacoma International Airport for nearly two weeks and resulted in emergency declarations from the governors of both Washington and Oregon. The Olympic Pipeline runs from Whatcom County to Portland and supplies more than 90% of Oregon’s transportation fuel. The total amount of fuel spilled has not yet been measured, but the damaged part of the pipeline was fixed and fully put back into service on Saturday, according to a BP statement.

Board & Committee Applicants Wanted in Sweet Home

Do you live in Sweet Home? Have you ever wanted to serve your community and help shape the way it plans for the future? The City of Sweet Home is currently seeking applicants for both the Planning Commission and the Park and Tree Committee! They also accept applications for all of our boards and committees year-round and will keep your application on file for consideration for up to two years if a vacancy occurs. 

For more information or to apply, click here! 

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Capitol Phone: 503-986-1411
Capitol Address: 900 Court St NE, H-381, Salem, OR 97301
Email: Rep.JamiCate@oregonlegislature.gov
Website: http://www.oregonlegislature.gov/cate