Oregon Senate Delays Transportation Tax Vote, Layoffs Postponed Amid Senator’s Health Issues

Tyler Francke

Oregon City News

Oregon Senate Delays Transportation Tax Vote, Layoffs Postponed Amid Senator’s Health Issues

SALEM, Ore. — A $4.3 billion transportation funding package that narrowly cleared the Oregon House is now on hold in the Senate, with the decisive vote delayed due to the medical recovery of a key Democratic lawmaker.

Senator’s Absence Delays Vote

The House passed the 10-year package on Monday, setting up a Senate vote for Wednesday. But on Tuesday evening, Senate Democrats announced the vote would be pushed back two weeks to Sept. 17 to accommodate Sen. Chris Gorsek, D-Gresham, who is recovering from complications following back surgery in August.

With Democrats holding exactly 18 seats in the 30-member Senate — the number required to pass a tax increase if Republicans remain unified in opposition — Gorsek’s absence left the bill short of the necessary votes.

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“We have been in constant communication with Sen. Gorsek and his team as he works to recover,” Senate President Rob Wagner, D-Lake Oswego, said in a statement. “My understanding is that it would be unsafe for Sen. Gorsek to be away from medical care at this time.”

Layoffs Pushed Back Again

The delayed vote has direct consequences for the Oregon Department of Transportation (ODOT), which faces a $300 million shortfall in its two-year budget cycle. Without new funding, ODOT had prepared to lay off 483 employees and close a dozen maintenance stations starting Sept. 15.

On Tuesday, Governor Tina Kotek announced that layoffs would instead be delayed until Oct. 15, giving lawmakers more time to approve the package.

“This date will make sure there are no interruptions for the hundreds of workers whose jobs hang in the balance and the basic services that Oregonians rely on,” Kotek said.

Workers Seek Stability

For employees, the postponements provide temporary relief but also deepen uncertainty. Melissa Unger, executive director of SEIU Local 503, which represents many ODOT workers, said the lack of clarity has been demoralizing.

“When one of our workers calls out sick, someone will step up and do their job,” Unger said. “Right now, we really believe that we need to give workers security. They have been facing unknown timelines, unknown votes for the past two months about whether they get to save their jobs.”

Wren Gilson, a senior application developer at ODOT, said half of their team had already received layoff notices. One member has already left due to the uncertainty.

“I definitely feel like my job is being held hostage for some political game,” Gilson told reporters, holding back tears. “I just wish there was something I could do or say to get people to just make this happen.”

What’s in the Transportation Package?

The House-approved package, an amended version of Governor Kotek’s proposal, is designed to stabilize ODOT funding. Key elements include:

  • Gas tax increase of 6 cents per gallon.

  • Vehicle title and registration fee hikes, adding about $84 to a two-year registration for passenger vehicles.

  • Payroll tax for transit doubled temporarily from 0.1% to 0.2%. For a worker earning the statewide average of $68,283, that means about $68 more annually.

The financial impact of the gas tax would vary based on mileage and vehicle fuel efficiency. Together, the measures are expected to generate enough revenue to cover ODOT’s shortfall and sustain infrastructure work for the next decade.

Looking Ahead

The Senate is now set to take up the bill on Sept. 17, assuming Sen. Gorsek can return. Until then, hundreds of state workers and the future of Oregon’s road maintenance program remain in limbo.

For lawmakers, the stakes are high: failure to pass the package could trigger widespread layoffs, while further delays risk compounding the uncertainty already weighing on workers and communities across the state.

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