How Central Oregon could be impacted by proposed transportation funding bill

Claire Elmer

(Update: Adding video)

BEND, Ore. (KTVZ) — Oregon lawmakers are in a special session debating Governor Tina Kotek’s proposal — Oregon House Bill 3991 — to close a major transportation funding gap. Without action, the Oregon Department of Transportation warns it could face hundreds of millions in cuts — forcing layoffs and the closure of road maintenance stations, including right here in Central Oregon.

Oregon Representative Emerson Levy (D) spoke with KTVZ News about the bill, and the local impacts Central Oregon would face if it didn’t pass. 

“The most important thing to me is to keep my constituents safe. And the Sisters maintenance station would have closed. And then additionally, we’re looking at the Detroit station being closed. So that would be the entire pass. Also, they’re part of our wildfire evacuation plan. So it’s important for winter, but it’s also important for summer,” said Levy.

The bill would raise about 4.3 billion dollars over the next decade. The biggest changes include a six-cent increase to the state gas tax starting in 2026, higher vehicle registration and title fees, and new charges for electric and hybrid vehicles.

“We know that costs are increasing. The number one issue in Central Oregon is cost of living. And so this was a really challenging vote. Where we landed was a six-cent gas tax increase. And that six cents goes straight to maintenance,” said Levy.

At Hyundai of Bend, where about 30 percent of sales are electric vehicles, there is worry the changes will make it harder for people to switch to cleaner cars.

Edward Brown, general manager for Team Hyundai of Bend, spoke about how the sale of electric vehicles could be impacted.

“There already is a higher registration tax and a higher title fee on electric vehicles. So they’re just raising it higher at this point. It’s going to drive everybody to not want to go electric because they’re just charging more taxes,” said Brown. 

Brown says the combination of new state fees and the loss of federal rebates could push customers away from EVs entirely. He believes the government should look for other ways to fund transportation.

“I think it’s a misappropriation of funds by the Oregon government, and they shouldn’t be a burden for taxpayers,” said Brown. 

Supporters of the bill argue the changes are necessary to keep plows on the mountain passes and roads clear during wildfire evacuations. Opponents argue the costs will hit working families hardest, in a state that already has some of the highest gas prices in the nation.

The House has already approved the plan. The Senate is expected to vote this week, deciding the future of Oregon’s transportation funding — and how much drivers here in Central Oregon will pay to keep roads open and safe.

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