Layoffs loom after Oregon gas tax hike dies

By Adam Aton | 07/01/2025 06:45 AM EDT

Gov. Tina Kotek, a Democrat, said up to 700 state workers could be fired because lawmakers failed to increase the cost of gasoline by 3 cents.

Oregon Gov. Tina Kotek speaks during a news conference in Salem, Oregon.

Oregon Gov. Tina Kotek (D) speaks during a news conference in Salem, Oregon. Jenny Kane/AP

Oregon Gov. Tina Kotek warned that hundreds of state workers face layoffs after lawmakers ended their yearly legislative session without raising the gasoline tax.

Kotek, a Democrat, suggested she might summon lawmakers back to Salem for a special session to boost transportation funding after this year’s proposals devolved into a messy fight that split Democrats and drew Republican threats of a ballot initiative.

“Lawmakers, your work is not done,” Kotek said in a press conference Saturday after the Legislature adjourned.

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A special session would mark a coda to an acrimonious process that began more than a year ago with field hearings about the state’s transportation needs. The Oregon Department of Transportation faces a $300 million budget gap, Kotek said.

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