Senate Minority Leader Daniel Bonham, R-The Dalles, left, and House Minority Leader Christine Drazan, R-Canby, hold a news conference Friday to share their counter proposal to the Democrats transportation funding bill. (Photo by Alex Baumhardt/Oregon Capital Chronicle)

Oregon Republicans opened Friday’s special legislative session with a proposal of their own to prevent hundreds of layoffs at the Oregon Department of Transportation and avoid raising taxes, by instead redirecting existing money earmarked for pedestrian and bike safety programs and for fighting climate change. 

The proposal, near-identical to one party leaders floated during the recent long session that wrapped in June, fires back at a plan from Gov. Tina Kotek and Democratic leaders to raise $5.8 billion in revenue for the shrinking agency during the next decade through an increase to gas and payroll taxes, and vehicle licensing and registration fees.

Democrats flatly rejected the Republican proposal in the formal legislative session, and failed to convince Republicans and some of their own lawmakers to pass proposals that would have raised more than $10 billion in revenue for the transportation department. That prompted Gov. Tina Kotek to call a special session for August in the hopes of averting what the agency estimates will be around 500 workers laid off due to a more than $350 million budget shortfall. 

Republicans have continued to argue that industries and businesses in the state are already struggling under high costs and taxes, and their suffering will be exacerbated by the Democrats’ proposal.

Republicans would instead rewrite existing state law to allow the transportation department to re-prioritize for roads roughly $500 million in existing funds obligated for pedestrian and bike safety programs, building out electric vehicle charging networks, the state’s Climate Protection Program, and passenger rail services. It calls for moving to road operations and maintenance projects $36 million in funding from the Connect Oregon program meant for rail, aviation and marine projects that rely on matching federal funds.

Jill Bakken, a spokesperson for House Speaker Julie Fahey, D-Eugene, said in a statement the Republican proposal, “would mean more families driving on pothole-filled local roads and unsafe bridges. It would make it harder for seniors and people with disabilities to get to their doctor, veterans to receive crucial services, and low income workers to get to their jobs.”

Republican party leaders at a press conference Friday morning described their approach as a way to give the agency more flexibility to avoid imminent job cuts at the department of transportation, and revisit long-term funding discussions down the line. They pushed back on concerns that the plan would jeopardize federal funding that can only be accessed with matching state-highway-fund dollars, or gutting programs for public safety. 

“Last time I checked, we relied on the state to maintain our state-level agencies,” House Minority Leader Rep. Christine Drazan, R-Canby, said. She was joined by Senate Minority Leader Daniel Bonham, R-The Dalles, and several Oregonians concerned about the negative impact of tax hikes on their personal budgets and businesses.

Bonham said Democratic leaders were unwilling to find common ground with them.

“Literally, we’ve been told ‘no,’ like, we’re not even talking about it,” Bonham said. “How do you negotiate with somebody that won’t negotiate with you? You take a stand.”

Both Drazan and Bonham signaled a willingness to take portions of their proposal to Oregon voters, should lawmakers proceed with Democrats’ plan. That plan increases the state’s gas tax by six cents, from $0.40 to $0.46, and one former Oregon Republican lawmaker, Brian Boquist of Dallas, in June began collecting donations for a Political Action Committee aiming to pass a ballot measure ending gas tax hikes. 

Doing so, however, would require a resource-intensive uphill battle. Petitioners would need to collect just over 78,000 signatures for a veto referendum within 90 days of the special session’s adjournment, should the tax hikes pass. 

Drazan told reporters that a potential ballot measure would likely focus on undoing tax increases passed by lawmakers, saying Republicans would “do everything we can” to “stand up for Oregonians.” Bonham said he was “committed to being part of the team that absolutely gets this thing on the ballot.”

“Democrats know this is unpopular. They know that this won’t fly in the next election cycle,” he told reporters Friday morning. “They’re going to pay a political price for this.”


Oregon Capital Chronicle

Oregon Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Oregon Capital Chronicle maintains editorial independence. Contact Editor Lynne Terry for questions: info@oregoncapitalchronicle.com. Follow Oregon Capital Chronicle on Facebook and X.

Shaanth Kodialam Nanguneri is a reporter based in Salem, Oregon covering Gov. Tina Kotek and the Oregon Legislature. He grew up in the Bay Area, California and went on to study at UCLA, reporting for the Daily Bruin until graduating in March 2025. Previously, he was a reporting intern covering criminal justice and health for CalMatters in Sacramento, California. He is always eager to tell stories that illuminate how complex and intricate policies from state government can help shape the lives of everyday Oregonians.