SALEM, Ore. – The Oregon Senate has postponed a crucial vote on a significant transportation tax package, a delay that directly impacts hundreds of Oregon Department of Transportation (ODOT) employees facing potential layoffs. The vote, initially slated for earlier this week, has been rescheduled to September 17, a move necessitated by the recovery of Senator Chris Gorsek following complications from back surgery.
This legislative pause places the planned September 15 layoffs of nearly 10% of ODOT’s workforce on hold, with Governor Tina Kotek subsequently directing the agency to push the effective date of these job cuts to October 15. The Governor expressed confidence that the transportation funding bill, which passed the Oregon House on a narrow party-line vote, will ultimately secure Senate approval upon Senator Gorsek’s return.
The Oregon Transportation Funding Package: A Bid to Avert Crisis
The comprehensive package, valued at approximately $4.3 billion over a decade, aims to address a substantial funding shortfall plaguing ODOT. The agency has been grappling with a budget deficit estimated between $300 million and $350 million, a situation exacerbated by flattening gas tax revenues, rising inflation, and restrictions on how existing funds can be utilized. Without new revenue, ODOT had initiated layoff notices for hundreds of its employees and planned to close numerous maintenance facilities across the state.
The proposed legislation includes several key revenue-generating measures:
* A six-cent per gallon increase in the state gas tax, raising it from 40 to 46 cents, effective January 1, 2026, projected to generate about $90 million annually.
* An increase in annual vehicle registration fees for passenger vehicles, from $43 to approximately $85, and corresponding adjustments for other vehicle types.
* A significant hike in vehicle title fees, increasing from $77 to $216.
* A doubling of the payroll tax that supports public transit, from 0.1% to 0.2%, set to last for two years before sunsetting on January 1, 2028.
* Increased registration surcharges for electric and highly fuel-efficient vehicles.
This package represents a scaled-down version of earlier proposals, with lawmakers making concessions in response to public feedback. Notably, a provision allowing tax increases without legislative approval has been removed, and a proposed tax on electric delivery vehicles was scrapped.
Senator Gorsek’s Health Creates Legislative Hurdle
The delay in the Senate vote stems directly from the absence of Senator Chris Gorsek (D-Gresham), a key Democratic caucus member whose vote is essential for the bill’s passage. Oregon law requires a three-fifths majority to approve tax increases, meaning Democrats, who hold exactly that majority in the Senate, need every member present to vote in favor if Republicans remain unified in opposition. Senator Gorsek is recovering from complications following a planned back surgery performed in August. Senate President Rob Wagner confirmed that it would be unsafe for Senator Gorsek to be away from medical care at this time, prompting the decision to postpone the vote until September 17.
Governor Kotek’s Intervention: Delaying Layoffs
Governor Tina Kotek, who convened a special legislative session specifically to address the ODOT funding crisis, has taken steps to mitigate the immediate impact of the vote delay on state workers. Recognizing the original September 15 layoff date would occur before the rescheduled Senate vote, she directed ODOT to postpone the layoffs until October 15. “I am making a good faith assessment, with the assurances of Senate leaders, that the bill passed by the House on Monday will pass when the Senate reconvenes,” Governor Kotek stated, emphasizing her support for Senator Gorsek’s recovery and gratitude for Senate Republicans’ professionalism during this period.
The Road to Passage: Background of ODOT’s Funding Shortfall
The current predicament is the culmination of years of declining revenue from traditional sources like the gas tax, which is not indexed to inflation, and increasing operational costs. The Legislature’s failure to pass a transportation funding bill during the regular 2025 session left ODOT facing a severe budget gap, forcing the agency to plan significant workforce reductions and service cuts. These cuts, if they occur, would represent the largest government layoff in Oregon history, impacting services such as pothole repair, road maintenance, snow plowing, and traffic management.
What’s Next for Oregon’s Transportation News
With the Senate vote rescheduled for September 17, all eyes remain on the legislative chamber. The outcome hinges on the continued recovery of Senator Gorsek and the unwavering support of the Democratic caucus. If the bill passes, it will provide much-needed funding to ODOT, preventing immediate layoffs and allowing for the restoration of critical services. However, the contentious nature of the tax increases and the narrow margins in the Senate underscore the ongoing challenges in securing stable, long-term transportation funding in Oregon. The news of the delay highlights the delicate balance of legislative action, public health, and essential state services. The coming weeks will be pivotal in determining the future of Oregon’s transportation infrastructure and the stability of its ODOT workforce.
