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State liaison: transportation package passed narrowly; cities face short-term revenue uncertainty
Summary
Doug Riggs summarized the recent special legislative session: a transportation package that raises the gas tax by 6¢, adjusts registration and other fees, temporarily increases a payroll tax, sunsets some transit funding after two years, and removes most ODOT tolling authority. He warned of a projected $845 million revenue shortfall for 2026 and outlined the likely referendum and signature deadlines.
Doug Riggs, who represents West Linn interests at the state level, told the council the special session focused narrowly on transportation and ended with a slim majority supporting a pared-down package. "It does increase the gas tax by 6¢," Riggs said, noting the package also raised registration fees, adjusted EV fees and included a small payroll tax increase that is set to sunset after two years.
Riggs described how the package affected funding distribution and transit allocations and highlighted one major policy win for the council: removal of the general tolling authority for ODOT except for the Columbia Crossing. He warned councilors that, despite passage, the package faces a likely voter referral: opponents have 90 days after passage to gather signatures, but if the governor waits the full 30 days to sign the process effectively gives signature gatherers roughly 60 days. "They have to gather 78,000 plus signatures within that 60 day period of time," he said, adding petitioners would likely target 110,000 raw signatures to ensure sufficiency.
Riggs also flagged fiscal pressure heading into the shorter 2026 session, citing a revenue forecast that is about $845 million below May estimates and the possibility of large federal program changes (for example, lower Medicaid reimbursement) that could worsen the shortfall. He urged continued local engagement with state representatives to protect projects important to West Linn, including locks, Highway 43 and waterfront-related infrastructure.
What this means for the city: councilors asked staff to monitor ODOT and state calculations for how the package will translate to city-level revenue and to continue outreach to the county and regional delegation as the referral and implementation process unfolds.
