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Oregon Governor Kotek Announces Special Session for Transportation Funding Ahead of Labor Day

Oregon Governor Calls Special Session to Address Transportation Funding Crisis

Oregon Governor Tina Kotek has announced a special legislative session set for August 29 to tackle a $350 million shortfall in the Department of Transportation’s budget, which has already triggered layoff notices for nearly 500 state employees.

The governor’s decision follows growing urgency among state legislators regarding the immediate need for funding to ensure basic road maintenance and local transit operations. While specifics on the funding strategy remain undisclosed, discussions have included a potential 6-cent gas tax increase, intended to evenly distribute revenue between state and local governments. Earlier legislative attempts to resolve the issue included a 3-cent gas tax increase, which ultimately failed to gain required bipartisan support.

“Oregonians rely on these critical services,” Kotek stated, emphasizing the need for elected officials to maintain adequate funding for essential operations ranging from wildfire prevention to snow removal. She has asked the Department of Transportation to delay layoffs for an additional 45 days, acknowledging ongoing complexities in the area of labor relations.

Despite a concerted effort to address transportation needs, lawmakers faced challenges in convincing the public and each other about the necessity of increased taxes and fees without immediate visible improvements in road infrastructure. Democratic leaders scaled back their original ambitious proposals throughout the regular session but could not finalize any funding before the end of June.

Local leaders echoed concerns about the impact of budget cuts on community safety, pointing to the importance of maintaining ODOT facilities and staff. Detroit Mayor Jim Trett remarked on the critical role of ODOT in responding to emergencies, while officials from Sisters and Lincoln City stressed the need for immediate restoration of funding for essential services.

The forthcoming special session aims to stabilize transportation operations in the short term while recognizing that a comprehensive solution to Oregon’s long-term infrastructure needs remains on the horizon.

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