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Leaders in the construction industry are optimistic that 2017 could the year the Oregon Legislature finally passes a large-scale transportation funding package.

What’s approved could include many different local projects around the state, or several so-called 鈥渕ega-projects鈥� addressing congestion choke points in metro Portland, including modifications of , and Interstate 205 between Stafford Road and the Abernethy Bridge.

Major variables include the size and scope of the package, and its funding sources. The package could focus heavily on maintenance or new projects or seismic readiness; it could contain lots of bonded funds or one-time cash injections.

No one knows.

鈥淩ight now there are more questions than anything else,鈥� said John Rakowitz, lobbyist for the largest construction group in Oregon, the Associated General Contractors’ Oregon-Columbia chapter. 鈥淥ur elected leaders are on record supporting this. Now, getting from that desire to getting a bill passed, that’s another story.鈥�

The package might have to challenge the assumption that Oregon residents don’t have the stomach for a higher state gas tax rate and costlier vehicle title and registration fees 鈥� the traditional sources of transportation funding.

The AGC chapter supports exploring alternative funding sources, such as public-private partnerships. But, Rakowitz added, 鈥淭his is trying a risk-taking approach with a security-seeking public.鈥�

One reason for optimism is the Joint Interim Committee on Transportation Preservation and Modernization 鈥� a unique board convened last year by Gov. Kate Brown featuring an even number of Republicans and Democrats and of senators and representatives. The committee held a 鈥渓istening tour鈥� last year to gauge transportation need across the state and set goals for the funding package.

The Oregon Department of Transportation hopes transparency in the process will help the package succeed, said Travis Brouwer, ODOT‘s assistant director for public affairs.

鈥淚n the past (lawmakers) have not had as early, or as broadly public, an engagement,鈥� he said. 鈥淚t’s hard to say, because we don’t know exactly how it’s going to work, but suffice to say, they have laid down the marker that they will have a transparent and open process.鈥�

Passage will also require cooperation. With majorities of 35-25 in the House of Representatives, and 17-13 in the Senate, the democrats still lack a supermajority that could easily pass bills.

The renewed talk of a transportation funding package even has technical groups paying attention. The Asphalt Pavement Association of Oregon doesn’t typically focus on legislative issues, according to executive director John Hickey. He is hopeful that if a funding package is approved, it includes enough money for infrastructure maintenance, and not just shiny new roads and bridges. But he knows projects addressing congestion consistently poll well with voters.

鈥淚 don’t think people or the Legislature always realize that if you don’t vote for an increase now, you’re kind of saying that you’re for a bigger increase down the road,鈥� he said. 鈥淭he need doesn’t go away.鈥�

Funding for transportation and infrastructure fluctuates fairly dramatically, Hickey said, and what worries him most is the loss of talent.

鈥淭he people make the roads,鈥� he said. 鈥淵ou need quality people to produce quality roads. And if you can’t keep them employed from year to year to year, you’re just not going to attract quality people.鈥�

In response to the dearth of road work available in Oregon, Mike Salsgiver, executive director of the AGC’s Oregon-Columbia chapter, said some of its members have disassembled their highway divisions or moved them elsewhere. And the state suffers greatly, he said, when its highway builders leave 鈥� that human capital isn’t easily replaced.

鈥淭his stuff isn’t simple,鈥� he said of transportation projects. 鈥淚 mean, who’s going to build this?鈥�

The road to funding

ODOT funds highway work to the tune of about $300 million each year. But the last major investment in transportation in Oregon is the Jobs and Transportation Act of 2009. Prior to that, the Legislature passed one Oregon Transportation Investment Act in 2001 and another in 2003, though these were much smaller in scale and included bonding at local levels to increase the amount of work done.

It’s tricky to talk about the size of a transportation funding package, Brouwer said, because it can also include bonded funds, and be spread out years into the future.

鈥淚t can include both ongoing revenue and one-time infusions from bonds and other sources,鈥� he said.

Currently, Oregon’s gas tax revenues are still growing, but slowly, and largely because people are still moving to Oregon and people are driving more because the economy is relatively healthy. Drivers of vehicles with greater fuel efficiency are paying less gas tax revenue even though those vehicles tear up the roads and contribute to congestion at essentially the same rate as vehicles with typical fuel efficiency.

ODOT projects that gas tax revenue will plateau in two years and begin declining.

In Oregon, drivers pay about 30 cents in state tax per gallon for gas and some diesel liquid fuels, on top of an 18.4 cent federal gas tax. But the state tax is considered rather low (Washington’s tax is 50 cents per gallon.)