QuickTake:

Oregon transit providers, including Lane Transit District, want state lawmakers to approve a phased-in payroll tax increase for transit funding to avoid service reductions.

Oregon transit providers want state lawmakers to consider a larger payroll tax increase, saying it’s needed so transit buses continue to run without cuts. 

The Oregon Transit Association, which represents the Lane Transit District and other providers, said Friday the transportation framework of priorities and funding sources that legislators have released does not go far enough. This session, lawmakers are working on a transportation package that would shore up the state’s roads, bridges and other infrastructure.

Lawmakers are proposing nearly double the payroll tax rate that funds transit services in Oregon, which currently costs $4.17 a month for an Oregonian who makes $50,000 annually. 

But transit providers want a larger increase spread across the next eight years. They say it’s necessary to preserve services in Lane County and elsewhere. Without it, transit providers say their agencies will be forced to make cuts and reductions in routes and personnel. In recent years, providers have faced challenges like former riders working from home instead of commuting and higher costs.

“The loss of fare revenue and the increase in operating costs mean transit agencies will be forced to reduce service, eliminate hundreds of jobs and cut off transit access for tens of thousands of Oregonians who depend on it,” Jameson Auten, CEO of Lane Transit District, said in a statement. 

In the Lane Transit District, passengers board buses more than 5 million times annually. Routes serve Eugene and Springfield and also go to outlying communities in the county like Cottage Grove and Florence. 

It’s unknown where Lane Transit District would make cuts if the transportation framework passed without changes. But the district, like the others, would have to start looking at potential cuts for the long term, said Sam Kelly-Quattrocchi, the Lane Transit District’s government relations manager. 

The goal is to preserve service throughout the district, including outlying communities beyond the Eugene-Springfield core, Kelly-Quattrocchi said, as people move to smaller communities and still need transportation for work and other needs.

Different scenarios 

Oregonians now pay about the cost of a cup of coffee in monthly payroll taxes that go toward transit agencies. Under the current payroll tax for transit service, a person who earns $50,000 a year pays $4.17 a month in the payroll tax, or about $50 annually. That’s a 0.1% payroll tax rate, or one-tenth of 1%. 

The Joint Transportation Committee’s framework suggests an increase that would raise the rate by 0.08% to 0.18%. That would bring the total to $7.50 a month for someone who earns $50,000 annually. That’s an increase from about $50 to $90 a year.

But those rates are not final. The framework is just a starting point and the Legislature has not finalized or passed the transportation package.

And transit providers want lawmakers to consider a different approach that would provide more funding. They face headwinds that include a decrease in fare revenues as more people work from home and increased costs. 

Yet transit services continue to provide a lifeline for Oregonians who need a way to get around, including seniors and disabled people. 

As a result, the Oregon Transit Association wants lawmakers to phase in an increase of 0.4% during the next eight years. That would amount to a 0.1% increase at the start of every two-year budget cycle. The first increase for an income of $50,000 annually would increase the monthly tax from $4.17 to about $8.33, doubling it. 

“It gives us certainty for growth and helps us make sure we’re trying to keep up with inflation and rising costs by seeing some revenue growth over time,” said Allan Pollock, vice president of Oregon Transit Association and the general manager of Cherriotts, which serves the Salem area.

At the end of the eight-year period, the rate would be 0.5%, or $20.83 a month on a $50,000 income. That’s about $250 annually. 

Lawmakers say the final transportation deal could look different as talks unfold this session. Sen. Chris Gorsek, co-chair of the Joint Committee on Transportation, said the framework is a “starting point” for transportation needs. 

“On the statewide transportation tour, Oregonians were clear that having transit options in their communities is important to them,” Gorsek, D-Gresham, said in a statement to Lookout Eugene-Springfield. “I am committed to making sure that transit is included in the final package, but it’s still early in our conversations so we don’t know where the package will land yet.”

Ben Botkin covers politics and policy in Lane County. He has worked as a journalist since 2003, most recently at the Oregon Capital Chronicle, where he covered justice, health and human services and documented regional efforts to combat fentanyl addiction. Botkin has worked in statehouses in Idaho, Nevada, Oklahoma and, of course, Oregon. When he's not working, you'll find him road tripping across the West, hiking or surfing along the Oregon Coast.