Governor Kotek’s Transportation Funding Bill Set To Move Forward Amid Senate Challenges

Governor Tina Kotek’s transportation funding bill has faced significant delays, akin to the traffic congestion during Portland’s rush hour, but there may be renewed momentum. The Senate is slated to convene at 9 a.m. to discuss House Bill 3991, Kotek’s initiative to increase the state’s gas tax along with other taxes and fees. If everything aligns with Democratic leaders’ expectations, the bill could reach the governor’s desk by lunchtime.

The success of this plan hinges on attendance when the session opens. Democrats have indicated that they have the 18 votes—three-fifths of the 30-member state Senate—needed to approve a tax increase. However, attendance issues have plagued the process. State Senator Chris Gorsek, D-Gresham, a supporter of the bill, is currently hospitalized due to complications from a recent surgery. His presence is vital for the bill’s passage, leading to two delays in the Senate vote. Initially, Democrats aimed to send the bill to Kotek’s desk on September 3, following her call for a special session over Labor Day weekend.

Meanwhile, employees of the Oregon Department of Transportation (ODOT) and their unions are anxiously watching the developments. Without the additional funding anticipated from Kotek’s proposed tax and fee increases, ODOT has warned it may need to lay off nearly 10% of its workforce.

The proposed legislation is projected to generate $4.3 billion through increased taxes and fees over the next decade, providing financial support to ODOT, local governments, and public transit agencies. If approved, HB 3991 would implement a 6-cent increase in gas taxes, raise vehicle registration and titling fees, increase costs for electric and hybrid vehicle drivers, and temporarily double a payroll tax that supports public transit. 

The bill would also modify the taxation system for heavy trucks, a necessary adjustment to gain support from freight interests. Additionally, it mandates more frequent audits of the transportation department, which has faced criticism from both lawmakers and the public for escalating project costs.