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County staff brief commissioners on LC 2 transportation funding bill ahead of special session
Summary
County staff and commissioners discussed LC 2, a legislative package proposing vehicle registration fee, gas tax and payroll tax changes to raise transportation revenue statewide. Staff described estimated county impacts and invited the board to submit testimony at a public hearing that week.
Clatsop County staff briefed the Board of Commissioners on LC 2, a legislative concept the county labeled for discussion that would raise transportation revenues statewide, and described how the bill could affect county and local transportation funding.
Staff explained the bill bundles several revenue changes: increased vehicle registration fees, adjustments to the gas tax (the presentation referenced changes to cents-per-gallon), title fees and program fees associated with electric vehicle programs. It would also double a payroll tax that funds rural mass transit providers — increasing the levy from 0.1 percent to 0.2 percent in the staff description — which would be directed to transit agencies. Staff said the distribution model in the proposal would allocate 50 percent of new revenue to the Oregon Department of Transportation (ODOT), 30 percent to counties and 20 percent to cities, with formulas within the county and city pots for local distribution.
County staff provided a high-level estimate of county receipts from the LC 2 revenue package: roughly $1.2 million to $1.3 million in additional county growth fund monies annually, staff said, to support county system maintenance. Staff also noted the proposal could yield additional, smaller allocations to cities within the county.
Commissioners discussed procedural options. Staff said the legislature had scheduled public hearings, and a special session was expected to start Friday and could last through Monday; commissioners asked whether the county should submit testimony at the hearing. Staff offered to prepare draft testimony for the board. Commissioners split on the proposal’s merits: some stressed the urgent need for maintenance and transit funding, particularly given prior workforce reductions at ODOT and threats to rural transit providers, while others expressed concern about accountability and the state agency’s capacity to manage a major influx of funds.
Commissioner Banks said she opposed increasing funding without stronger checks on statewide capital project selection and oversight; another commissioner warned that failure to act would likely cause deeper local maintenance and service reductions. Staff said the proposal would not end the debate and that further legislative action would be required after any special session outcome.
No formal board position was adopted on Aug. 27. Staff said they would monitor the special session and could submit testimony if the board requested it before the Friday public hearing.
