Oregon Gov. Kotek Proposes 6-Cent Gas Tax Hike to Avert Hundreds of ODOT Layoffs

Oregon Gov. Tina Kotek has called a special legislative session beginning August 29 to address a $350 million budget shortfall at the Oregon Department of Transportation (ODOT) and prevent hundreds of layoffs. Her proposed transportation funding bill includes a 6-cent increase in the gas tax, a $42 hike in vehicle registration fees, a $139 rise in title fees, a $30 surcharge for electric vehicles, and doubling the payroll tax for transit. The new funding aims to stabilize ODOT’s budget, restore essential services, and avoid up to 700 layoffs, which have already affected over 480 employees. Kotek emphasized the need for legislative accountability measures, including regular performance audits and authority over the ODOT director, to ensure oversight. Despite previous failure of a larger transportation bill, Kotek is optimistic this targeted approach will gain bipartisan support and help cities and counties share in the increased revenue. The fee hikes would take effect in January 2025 if the bill passes during the special session.