NEWS

Lawmakers appear headed for a fight over gas tax

Hannah Hoffman
Statesman Journal

The Oregon Legislature appeared primed for a nasty fight over a transportation package as leaders in the Senate and House of Representatives outlined their positions Tuesday.

Both Democrats and Republicans said they would like to pass a bill that includes money for infrastructure projects across Oregon, which would be paid for with some combination of higher gas taxes and vehicle registration fees.

So far, neither side has named an amount of money the package would raise or a list of projects.

However, Republicans said the plan won't get their votes if Democrats also push a bill that sets limits on how much carbon can be in fuel sold in Oregon.

Democratic leaders insisted the two bills are not connected, but House Republican Leader Mike McLane said both will raise the price of gasoline and will therefore be connected in the minds of voters.

"You can't have everything you want," said Senate Republican Leader Ted Ferrioli.

Senate President Peter Courtney said he believes Republicans when they say a carbon fuels bill means no transportation package. The two sides have already reached an "impasse" because he won't scrap the carbon issue.

The Republicans are in a unique position to have leverage on the issue of the transportation package.

They are in a significant minority in both the House and Senate, which means Democrats can theoretically pass nearly anything on their own, including the carbon bill.

However, Democrats need the Republicans to pass a gas tax increase.

Any vote that raises taxes needs more than just a majority vote. It needs a "super majority," which means 18 votes in the Senate and 36 votes in the House — one more than the Democrats have in the House.

At least one Republican will have to vote for the gas tax in the House for it to pass.

In the Senate, there is no guarantee all the Democrats will like the transportation package. If they lose even one of their members' vote, they will need a Republican vote as well.

Ferrioli was clear: Pass the carbon bill, and the GOP won't play ball on raising the gas tax.

That infuriated his more liberal colleagues.

"It would be unfair to hold (the transportation plan) hostage because it's something we need to do," said Senate Democratic Leader Diane Rosenbaum.

McLane didn't go as far as Ferrioli, but he indicated his party wouldn't accept both bills.

The GOP could also play a crucial role after the 2015 legislative session ends: In 2009, when a similar transportation plan was passed, Republicans helped assure the plan remained intact by working behind the scenes to stop any effort to refer the tax increase to voters.

That package raised about $273 million and increased the gas tax by 6 cents per gallon.

If Republicans don't play a similar role this time and let it go to a popular vote, it will almost certainly fail, Courtney said.

House Democratic Leader Val Hoyle said it was unacceptable for Republicans to link the bills.

"We need to invest in that infrastructure. We can't rely on the federal government. ... It's our responsibility," she said. "If we allow ourselves to be taken hostage by people who are ideologically pure at the start of the session, that's just a recipe for disaster."

Speaker of the House Tina Kotek said she is more optimistic than Courtney and thinks the transportation plan still has a chance.

Gov. John Kitzhaber said the same, noting the session doesn't even begin until Feb. 2, making it much too early to give up on such an important project.

However, he criticized the Republicans' stance and said the carbon bill has nothing to do with the gas tax, even if Republicans say they are for political reasons. It likely won't even raise gas prices, he said.

"I think there's a political game going on here. ... This is the epitome of a false choice," Kitzhaber said. "At the end of the day, I think people will step up and do the right thing."

hhoffman@statesmanjournal.com, (503) 399-6719 or follow at twitter.com/HannahKHoffman