Governor's LC 2 would raise fees and taxes to avert ODOT layoffs; supporters and critics clash at Salem hearing

A joint interim committee on transportation heard three hours of presentations and public testimony on Aug. 25 about LC 2, a short-term transportation funding package the governor has proposed to prevent layoffs at the Oregon Department of Transportation and keep maintenance yards open. The measure would increase several taxes and fees and add new collection mechanisms, while inserting additional oversight of ODOT's performance.

Kelly Brooks, Governor Kotek—s transportation advisor, told the committee the proposal—s goal is to "stop the layoffs and the facility closures, maintain the 50-30-20 split with local governments, and support stabilization of transit service." Brooks said the administration—s payroll and program review showed 449 vacant positions and 483 planned layoffs for a combined 932 job impacts as presented to the committee, and that LC 2 is designed to preserve frontline maintenance and DMV customer-service staffing first.

The core fiscal elements described in the hearing materials include a 6-cent increase in the gas tax; a $42 increase in the base vehicle registration fee; a $139 increase in the base title fee; higher supplemental registration fees for some high‑efficiency vehicles; and an increase in the payroll tax that funds…