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Oregon transportation tax pause may pressure layoffs, service cuts

EditorialBy EditorialDecember 15, 2025No Comments4 Mins Read

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Oregon Rep. Ed Diehl, R-Stayton
Oregon Rep. Ed Diehl, R-Stayton, speaks Friday at an occasion earlier than No Tax Oregon delivered 193,000 signatures by horse-drawn carriage to the Oregon Secretary of State’s Workplace for a transportation referendum. The No Tax Oregon marketing campaign was led by Diehl, and Sen. Minority Chief Bruce Starr, R-Dundee, pictured proper.

Oregon Sen. Bruce Starr’s Workplace

Oregon Republicans collected sufficient signatures for a referendum in search of to reverse tax will increase authorised by lawmakers in a particular session to forestall mass layoffs on the Oregon Division of Transportation.

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The No Tax Oregon marketing campaign led by Republicans Rep. Ed Diehl of Stayton and Senate Minority Chief Bruce Starr of Dundee and Jason Williams of the Taxpayers Affiliation of Oregon turned in 193,000 signatures Friday to Oregon’s Secretary of State in Salem. This quantity is greater than double the required 78,116 wanted to put the measure on the November 2026 poll, in response to Starr’s spokeswoman.

State election officers have till Jan. 29 to find out if sufficient signatures are legitimate.

Members of the No Tax Oregon marketing campaign arrived on the Secretary of State places of work in a horse-drawn carriage and delivered the signatures in packing containers wrapped with Christmas paper.

“We wished to make an announcement that Oregonians aren’t going to be ignored,” Starr mentioned. “This can be a reward from Oregonians to the governor and the Democratic majority to say we’re not going to be ignored.”

Oregon Gov. Tina Kotek had championed the taxes, saying they had been wanted to forestall mass layoffs and repair cuts to ODOT.

Now that the signatures have been submitted, the taxes can be suspended till after voters weigh in.

“Oregonians have exercised their potential to problem actions taken by the legislature, and the governor respects the end result of that course of,” mentioned Roxy Mayer, Kotek’s press secretary.

Kotek, a Democrat, known as a particular session in August after lawmakers within the Democratic-controlled legislature didn’t move a transportation price range and Oregon Division of Transportation officers mentioned they must layoff as much as 700 staff and cut back on primary providers, like winter freeway plowing.

Inside hours after lawmakers authorised Home Invoice 3991 — the transportation invoice that introduced the GOP-opposed tax will increase — on Sept. 29, Kotek directed ODOT to halt deliberate layoffs, at that time estimated at 483 staff. She delayed signing the invoice till Nov. 7, which was seen as an effort to make it tougher for Republicans to achieve signatures for the referendum by the submitting deadline.

In her signing assertion, Kotek mentioned the invoice would “assist us hold state highways and native roads secure and open to visitors whereas preserving transit service and halting the pending layoffs of important transportation employees.”

Underneath HB 3991, the common Oregon driver would have paid about $66 extra yearly in registration charges and fuel taxes, or about $5.50 extra a month, Kotek mentioned in her signing assertion.

The rise would have crammed a $300 million transportation shortfall for the 2025-27 biennium to take care of present providers and forestall the layoffs. 

“The emergency funding that the legislature supplied to maintain Oregon’s roads, bridges, and transit methods secure and dealing can be suspended instantly,” Mayer mentioned. “This implies ODOT has a big price range deficit that should be urgently balanced. Cuts to essential transportation applications are financially unavoidable, and the governor might want to evaluate a possible layoff course of once more”

Simply final week, Mayer mentioned, there was a rain-caused landslide north of the town of Siletz blocking visitors on Freeway 229. 

“ODOT crews are actively responding to the scenario,” Mayer mentioned. “Because of this we’d like an adequately funded transportation company to maintain Oregonians secure.”

Over the previous 4 years, ODOT officers mentioned that they had been holding a whole lot of positions vacant to handle out there sources. These vacant positions had been to be eradicated along with the proposed layoffs.

“Republicans should now work with Democrats to discover a totally different resolution,” Mayer mentioned. “The governor’s guideline is to keep away from, as a lot as attainable, quick service cuts that can influence Oregonians.”

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