By Terry Murry on Friday, August 8th, 2025 in Columbia Basin News More Top Stories
SALEM – Oregon Gov. Tina Kotek has unveiled the details of her funding solution to preserve critical transportation and maintenance services for Oregonians and avoid the massive layoffs planned by the Oregon Department of Transportation due to lack of funds.
She is proposing that during the upcoming Aug. 29 emergency session, legislators approve raising the state’s gas tax from 40 cents to 46 cents. She also wants to raise car registration fees by $42, increase title fees by $139 and double the state’s 0.1 percent payroll tax for transit. Kotek also proposes requiring drivers of electric vehicles or highly-fuel-efficient vehicles to pay a $30 surcharge.
It’s a plan that leaders for the Democrat majority like.
“The governor’s proposal is a targeted, near-term, and necessary fix to a statewide crisis,” Senate President Rob Wagner (D-Lake Oswego) said. “This proposal doesn’t solve all the funding challenges facing our statewide transportation system, but we have an opportunity with this legislation to keep Oregon on a path toward a fair and stable funding system that puts safety first.”
Republican House Minority Leader Christine Drazan begs to differ.
“The governor’s tax package is going to hurt struggling families,” she stated. “Oregonians will be paying more but getting less – no new lanes, no improved bridges, just higher taxes. House Republicans proposed using money from the state’s Legislative Emergency Board to protect maintenance and preserve essential jobs that keep our roads safe, but the governor rejected any plan that didn’t raise taxes.”
According to Kotek’s office, if the additional revenues are not secured during the special session, a first wave of ODOT layoffs will go into effect Sept. 15 and a second wave will follow in January 2026.