Sen. Thatcher: Stop the rushed push for more taxes

The Special Session: A Rushed Push for More Taxes
By Oregon State Senator Kim Thatcher,

Governor Kotek has convened this emergency session to address a reported funding shortfall in transportation for the 2025-27 biennium, primarily aimed at bolstering the Oregon Department of Transportation (ODOT). The proposal includes raising $620 million through new taxes and fees on everything from vehicle registrations to fuel, all in the name of maintaining roads, bridges, and our highway system–split among ODOT, counties, and cities.

While no one disputes the need for safe infrastructure, this approach feels like yet another example of Democrat leadership’s go-to solution:  tax more, spend more, without addressing the root causes of inefficiency and waste at ODOT or within Oregon state government, generally. Let’s be clear, ODOT, with its $6.9 billion budget for the 2023-25 cycle, isn’t facing a revenue crisis but a spending problem. The agency has been plagued by mismanagement. For example, there are dramatic cost overruns on mega-projects such as:

• The Interstate 5 Rose Quarter expansion, which has ballooned from $450 million to $2.1 billion.
• The I-205 Abernethy Bridge, tripling from $250 million to $815 million.
• Even the Interstate Bridge Replacement could hit $9 billion or more, with potential tolls reaching $20 during peak times, a burden that could force many Oregonians to detour or avoid travel altogether. In recent polls 48% said they’d take a detour and 16% wouldn’t travel at all.
• ODOT has added $270 million in short-term debt and diverted $100 million from bridge preservation to cover these overruns, neglecting basic maintenance like snowplowing and pothole repairs.

Critics, like economist Joe Cortright, argue that Oregon’s transportation spending is actually typical among Western states when adjusted properly, not the underfunded outlier ODOT claims. Fuel tax revenues are $73 million higher than five years ago, yet the agency prioritizes bloated projects over essential services.

Republicans have also raised concerns about the Climate Protection Program’s Cap and Trade revenues, which generate roughly $200 million annually but are directed to clean energy and environmental justice projects rather than road maintenance. This fuels suspicions of mismanaged funds being diverted to Democratic priorities. Adding to this, Governor Kotek’s executive order mandating Project Labor Agreements (PLAs) for state-funded projects has drawn fire for inflating costs. Studies suggest PLAs can increase project expenses by up to 20% by limiting competition to unionized contractors, a policy now facing a lawsuit for overstepping her authority.

The Climate Protection Program’s compliance costs also add an estimated 10-15 cents per gallon to fuel prices, further squeezing Oregonians at the pump. In a state already grappling with high living costs, inflation, and economic pressures on Oregon families, adding more fees during a one-day special session—with little time for public input or debate—is simply irresponsible.

Republicans like myself have consistently advocated for reforms: pausing and right-sizing mega-projects, prioritizing maintenance, and exploring public-private partnerships instead of defaulting to tax increases that hit everyday Oregonians hardest. Unfortunately, with Democrats controlling the agenda and needing just a three-fifths majority for revenue bills, this session risks becoming a rubber-stamp for their priorities, sidelining conservative voices calling for fiscal restraint and accountability.

Adding to the concerns, local issues like the proposed 0.7% Cherriots payroll tax, is set to raise $39 million annually – despite Cherriots’ holding over $40 million in reserves – and has sparked strong opposition. The Keizer City Council voted to oppose it, citing the undue burden on employers and lack of voter input.

I strongly oppose this transportation package as currently proposed—it’s a short-sighted fix that burdens taxpayers without guaranteeing better outcomes.

What You Can Do: Make Your Voice Heard

In Oregon’s Democrat supermajority era, grassroots action from constituents like you is our strongest tool. Here’s how to get involved:

• Contact Your Legislators: Reach out to Governor Kotek’s office and your local representatives before August 29. Urge them to reject tax hikes and demand ODOT reforms first. You can find contact info at oregonlegislature.gov.
• Stay Informed: Follow updates on the session via reliable sources, and sign up for my email alerts for real-time insights.
• Join the Conversation: Share your thoughts on social media using #OregonTransportation or tag me @SenKimThatcher—let’s amplify the call for smarter, not bigger, government.

Thank you for your continued support and trust. Together, we can keep Oregon moving forward without leaving families behind. If you have questions or need assistance, my office is always here for you.

The post Sen. Thatcher: Stop the rushed push for more taxes first appeared on Oregon Catalyst.