Finance
Oregon's Transportation Funding Debate Heats Up as Opponents Gear Up for Potential Voter Referendum
2025-06-13

In Oregon, the debate over transportation funding is intensifying as Democrats present a comprehensive plan to address road and bridge maintenance. While opinions vary on the likelihood of this package passing, opponents are already mobilizing to take it to voters. Former state Senator Brian Boquist has launched a political action committee named "No Gas Hikes" with the aim of collecting signatures to place the proposal on the 2026 ballot if it becomes law. The Democratic proposal involves tax increases and oversight measures, including adjustments to gas taxes, vehicle registration fees, and new car sales taxes, among other provisions. With significant financial backing from auto dealers and past legislative experience, Boquist and his allies are preparing for a potential showdown at the polls.

Boquist's initiative reflects growing concerns about the Democratic transportation funding plan. The proposal, House Bill 2025, seeks to increase the state’s gas tax by 15 cents per gallon, introduce a 2% tax on new car sales, and establish a per-mile fee for electric and hybrid vehicles. These measures aim to generate substantial revenue—potentially exceeding $1 billion annually—to fund infrastructure projects and enhance oversight of the Oregon Department of Transportation. However, critics argue that the plan lacks bipartisan support and may disproportionately affect road users. Boquist emphasizes the need for a more inclusive approach, suggesting that without broad consensus, the bill should return to the drawing board.

Support for Boquist's PAC comes primarily from auto dealerships opposed to increased taxation on car sales. As of recent reports, No Gas Hikes has amassed nearly $186,000 in contributions. Republican campaign consultant John Swanson, co-director of the PAC, highlights its preparatory role, ensuring readiness should the bill pass into law. Swanson clarifies that his involvement remains distinct from his legislative duties, focusing instead on building an operational framework for potential referendum efforts. This strategic groundwork underscores the seriousness of opposition to HB 2025.

Historically, Oregon voters have resisted gas tax hikes. In 2000, a similar proposal faced overwhelming rejection, with 87% voting against it. Despite recent local successes in cities like Portland, statewide acceptance remains uncertain. Democratic Representative John Lively voices skepticism, predicting failure if the measure reaches the ballot. Meanwhile, Boquist draws upon his experience crafting the 2017 transportation package, acknowledging the fluid nature of legislative negotiations during the session's closing days. He anticipates critical developments as pressure mounts for either compromise or confrontation.

As the legislative session progresses, all eyes remain on whether compromises can be reached to secure passage of the transportation funding bill. Should the measure survive legislative scrutiny, its fate will rest with Oregon voters. The outcome hinges not only on the final form of the bill but also on the effectiveness of campaigns waged by both proponents and opponents. With significant stakes involved, the coming weeks promise intense deliberation and strategic maneuvering.

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