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Oregon News
POLITICS
Oregonians will not see a higher gas tax in January: 5 things to know
The Oregonian | By Carlos Fuentes
Several Oregon transportation taxes and fees will not increase in January after leaders of the campaign attempting to halt those increases on Friday submitted more than enough signatures to give voters the final say.
Democratic lawmakers had approved the tax increases this fall in an effort to help the state continue paying for the maintenance of Oregon’s roads and bridges. The tax hikes included: a 6-cent increase to the state’s 40 cents per gallon gas tax, large hikes to title and registration fees and a doubling of the state’s 0.1% payroll tax for transit.
But those tax increases have been suspended pending the validation of the signatures by the Secretary of State’s Office and likely referral to voters next November. The Republican lawmakers leading the anti-tax campaign delivered nearly 200,000 signatures, more than twice the required amount.
The Secretary of State’s Office has until Jan. 29 to validate the signatures, a spokesperson for the agency said.
Here are five takeaways from the latest development:
1: Opponents ran an energetic campaign
Campaign leaders had less than two months to gather the roughly 78,000 signatures required to refer the tax increases to next November’s ballot. Before Gov. Tina Kotek signed the bill into law on Nov. 7, Salem insiders of both parties were skeptical that the campaign leaders would be able to gather enough signatures in such a short timeframe without any major donors.
But the Republican leaders behind the effort said from the beginning they were confident they would be able to gather the signatures. In the days before they officially began collecting signatures, chief petitioner Rep. Ed Diehl of Scio said the campaign had begun coordinating with 3,000 volunteers across the state.
2: The state transportation agency’s future is unclear
It’s unclear what the halt on tax increases means for the Oregon Department of Transportation. The agency could cut its services and lay off workers to address its budget gap, but Democratic lawmakers and the governor have expressed an unwillingness to allow those cuts.
Oregon labor union SEIU Local 503, a top political ally and campaign donor to Democrats in Salem which represents many state transportation workers, has implored lawmakers all year to secure funding for the agency and avert layoffs.
In a statement Friday, Kotek’s office said she is “committed to working with lawmakers of both parties, (agency) 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.”
Lawmakers will likely take action in the upcoming February short session.
3: Other parts of the law are expected to go forward
Several provisions of the transportation law were not targeted by the referendum effort and are still set to go into effect. Those include provisions that will:
- Simplify the state’s tax structure for trucking companies
- Increase legislative oversight of major projects managed by the Oregon Department of Transportation
- Gradually require electric vehicle drivers to pay a fee per mile driven
- Require truckers and car drivers to pay their fair share for their wear and tear on the state’s roads and bridges
- Eliminate existing language in state law that would allow tolling to pay for certain highway projects
4: It’s another loss for Democrats
Democrats spent much of this year attempting to finalize and approve a transportation funding package, yet they are now essentially back at square one.
Despite claiming supermajorities in both legislative chambers, Democrats failed to secure more funding for the state transportation agency during this year’s five-month regular session. After a series of missteps and some concessions to Republicans, they passed the plan in a special session this fall. Their final plan included smaller tax hikes than many of them had initially hoped to pass.
5: No increased funding for cities, counties or public transit
Cities and counties were set to receive nearly half of the revenue generated from the increase to the gas tax and DMV fees. Public transit districts were set to receive twice the amount of money, as a result of the hike to the state’s payroll tax.
Now, they will not receive any extra state dollars.
Cities and counties are currently allotted about 50% of the State Highway Fund, which is funded by DMV fees, the gas tax and fees on trucking companies. While many cities and counties have their own local sources of revenue to help pay for transportation services, local leaders from across Oregon have said that the state dollars are vital in maintaining their roads and infrastructure.
Public transit districts, meanwhile, asked for a much larger boost to the payroll tax than the 0.1% increase that lawmakers eventually approved. Earlier this year, a group of Democrats said they would support a fivefold increase to the payroll tax for transit, which was met by strong opposition by Republicans and some fellow Democrats.
Interstate 5 Bridge cost update delayed until 2026, awaiting Coast Guard
The Oregonian | By Carlos Fuentes
Officials leading the effort to replace the aging Interstate 5 bridge between Portland and Vancouver said Monday they likely will not release a new cost estimate for the massive infrastructure project until at least spring 2026.
The primary reason for the delay: the U.S. Coast Guard has not yet decided whether the future bridge should include a movable section to allow ships above a certain height to pass underneath — an addition that would likely boost the final price tag by more than $500 million, officials told a committee of lawmakers from Oregon and Washington overseeing the project.
Project officials have not released a new estimate since December 2022, when they said the project was expected to cost between $5 billion and $7.5 billion. Construction is expected to begin in mid to late 2026.
Oregon AG: Judge blocks federal fines against states over SNAP benefit distribution
KPTV
A federal judge has blocked the Trump administration from fining states over distributing SNAP benefits to refugees and asylum seekers, according to the Oregon Attorney General.
Klamath Falls rancher named Oregon Cattlemen’s Association president
Capital Press | By Kyle Odegard
Diana Wirth, the new president of the Oregon Cattlemen’s Association, wants to help the industry thrive so her new grandson can one day take over the family ranch, if he chooses.
The organization is on the front line of legislative battles to protect ranchers and other industry members in Oregon.
Disgraced Oregon politician still on the run
The Oregonian | By Noelle Crombie
Former Clackamas County Commissioner Melissa Fireside remains at large more than six weeks after apparently fleeing the country with her young son as she faced felony theft allegations.
Oregon DOC reforms boost healthcare for inmates, cut lawsuits and grievances
KVAL
After 120 days of initiating reform measures to improve the Oregon Department of Corrections (DOC) Healthcare Division, the healthcare delivery system for adults in custody (AICs) is improving the standard of care for those under state supervision, according to a news release from Oregon DOC.
BUSINESS & ECONOMY
Intel hires Trump aide to run government affairs
The Oregonian | By Mike Rogoway
Intel named three executives to key posts Monday, hiring a Trump administration official to run the chipmaker’s government affairs office.
Reworld Marion garbage incinerator may be sold to Houston company
Statesman Journal | By Tracy Loew
Houston-based Peaker Energy is considering purchasing and reopening the former Reworld Marion garbage incinerator.
The incinerator closed earlier this year, citing financial issues and difficulty meeting new state environmental regulations.
The potential sale is being called "Project Barber Pole" by the region's economic development agency, SEDCOR.
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