
Gov. Ted Kulongoski this week unveiled his proposed 2009 Jobs and Transportation Act, designed to stimulate the economy with a substantial investment in the state’s long-deteriorating transportation system. We’re not yet ready to declare Yea or Nay, but we think Oregonians need to understand that there is a price for the transportation improvements they want.
The plan extends the governor’s history of support for transportation investment. It would pump $1 billion per biennium into the economy and provide at least 6,700 jobs per year for the first five years.
Prior Kulongoski-supported legislation included the 2003 Oregon Transportation Act, which will have invested $2.5 billion in Oregon’s crumbling roads and bridges over a 10-year period. Jobs provided by this legislation will be phased out by 2013.
Legislation Connect Oregon I and II, passed in 2005 and 2007, invested $200 million to improve the connections between our highway system and other modes of transportation, providing better integration and flow of commerce throughout the state. Under the new act, Connect Oregon would continue at the increased rate of $150 million per year, keeping about 2,100 jobs, including many in rural areas of the state.
Other details:
• The act would create a baseline trust of at least $6.5 million per year for the 12 most timber-dependent counties. Current federal forest payments for roads will phase out in four years, and would be replaced partially by the trust.
• Transportation services for the elderly and disabled would be expanded with a $5 million per year allocation.
• Fifty percent of the new revenue would be dedicated to local governments: 30 percent to Oregon’s counties and 20 percent to cities. That translates annually to $3.45 million for Yamhill County and $1.1 million for the city of McMinnville.
Other elements include emission reduction plans; maintenance and safety for highways, bridges and culverts; highway modernization; and easing of key freight bottlenecks from projects funded by $600 million in dedicated, one-time bond proceeds.
The continuing plan would be funded from a variety of sources. First, a 2-cent-a-gallon gas tax, which would be the first increase since 1993. Vehicle registration fees would increase from $27 to $81 a year, still far below those in many other states. Vehicles new to the state would have add-on assessments of $100, but that could be reduced to $50 if the vehicle has a combined EPA rate of 30 miles per gallon. Regular title fees would increase from $55 to $110 per year.
Early next year, constituents will weigh in, lobbyists will consult with clients and legislators likely will hear from them all. We think the plan has merits, not the least of which is the contribution to local transportation needs. We’ll watch it closely as it moves through the 2009 legislature.
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