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Oregon lawmakers passed a key transportation funding bill this week, averting layoffs at the Oregon Department of Transportation and securing money for road maintenance before winter weather begins.

鈥淥regonians believe 鈥� that having safe, accessible roads is a core function of government,鈥� Gov. Tina Kotek said at a press conference on Monday. 鈥淥ur highways have to be open. People need to be able to get where they need to go.鈥�

The legislation halts the threatened layoffs of hundreds of ODOT employees that were due to occur if the bill hadn’t passed. ODOT also canceled the closures of 12 maintenance stations around the state.

Overall, the package is expected to boost revenue by $791 million in 2025-27, and $889.9 million in 2027-29, according to a Legislative Revenue Office analysis.

鈥淭his funding is a significant investment, and we do not treat it lightly,鈥� ODOT spokesman Kevin Glenn stated in an email on Wednesday. 鈥淥DOT will increase efficiency and, with this funding, continue to deliver for Oregonians.鈥�

Republicans criticized the bill, which passed the Senate by an 18-11 margin, as a major tax increase on Oregon drivers. The legislation hikes the costs of several taxes and fees.

鈥淒emocrats chose the easy path: tax more, spend more and ignore the consequences,鈥� Rep. Virgle Osborne, R-Roseburg, stated.

Passenger vehicle registration fees will nearly double from $43 annually to $85. Title fees will jump from $77 to $216.

Payroll taxes will double to 0.02 percent, effective Jan. 1. That’s expected to raise $196.6 million during the next biennium.

The bill also:

• directs the Secretary of State to conduct biennial audits of ODOT’s capital projects and use of state highway funds, and
• gives the governor, rather than the state Transportation Commission, the power to appoint and fire the ODOT director.

The legislation does not fund any of the state’s major capital projects such as the $2.1 billion Interstate 5 Rose Quarter Improvement Project, which faces a massive funding shortfall in part due to federal cuts.

鈥淭his package doesn’t solve all of the issues we see going forward, so we’re hopeful for more conversation leading to a comprehensive solution later,鈥� said Kirsten Adams, lobbyist for the Associated General Contractors’ Oregon-Columbia chapter.

Transportation funding was delayed when legislators could not agree on a package during this year’s regular session that ended June 27. Kotek called a special session to begin on Aug. 29, but legislative action was delayed due to the lack of a quorum.