Senate passes transportation budget, ODOT layoffs averted

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SALEM, Ore.-The Oregon Senate passed an emergency transportation budget on September 29, averting mass Department of Transportation layoffs.

House Bill 3991, which will raise $4.3 billion over the next 10 years to fund road maintenance and operations through taxes and fees, passed by an 18-11 vote along party lines and is now headed to Gov. Kotek’s desk.

“When winter weather hits this year, Oregon families will be able to depend on road crews to get to where they need to go, businesses will be able to move their goods, and first responders will be able to get to emergencies,” said Governor Tina Koket, after the bill passed.

An estimated 10 percent of ODOT’s workforce faced layoffs if a transportation budget wasn’t passed. With the passage of HB3991, the layoffs have been halted, according to ODOT.

“This bill isn’t perfect, but it’s necessary,” said State Representative Cyrus Javadi (D-Tillamook). “We stopped pink slips from going out, kept snowplows on the road, and made sure first responders can get where they’re needed.”

Current winter service levels across Oregon’s highways will now be maintained, and 12 ODOT maintenance stations slated for closure will now remain open, according to a press release from Gov. Kotek’s Office on HB 3991.

Increased taxes and fees in HB 3991

  • Increase the gas tax from 40 cents to 46 cents, effective January 1, 2026
  • Increase car registration fees by $42, from $43 to $85
  • Increase title fees for cars from $77 to $216
  • Double employee payroll tax from 0.1 to 0.2 through January 2028
  • Increase annual registration surcharge for electric cars from $35 to $65

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