Battles over transportation and taxes spill into education arena

OSBA focuses on legislation that affects schools, but sometimes unrelated debates in the next hearing room or on the chamber floors ripple through our work.

With just a little over a week left in the short legislative session, lawmakers have been holding multiple daily floor sessions. Two main budgetary topics have been at the forefront of this session: partial disconnect from the federal tax code to rebalance the budget, Senate Bill 1507, and funding transportation, SB 1599.

Both bills have been influencing the politics of this session.

Republicans are a minority in both chambers, but they still possess tools to slow down the process. In addition to filing minority reports and walking out to deny a quorum, Republicans have also required bills be read in their entirety, which sometimes takes hours.

The Oregon Constitution requires bills to be read three times on three different days (first read, second read, third read) prior to being voted on. The tussle over these bills has delayed voting on other, less controversial, bills. Because the short session timelines are so tight, every slowdown potentially leaves more bills gasping for a chance to be heard before deadlines shut them off.

Republicans have been using the tools they have to halt the election date change in the transportation package. The Legislature passed a transportation package to provide more funding to Oregon Department of Transportation in a special session last year. The bill is expected to raise $4.8 billion for ODOT over the next 10 years by increasing the gas tax 6 cents, as well as increasing registration and title fees and increasing payroll taxes for transit.

ODOT reports that without the additional funding, it will have to lay off upward of 500 employees or attempt to redirect funding from other programs: bridge and seismic projects, the Portland Rose Quarter, Abernathy and Boone Bridge projects, and Safe Routes to Schools among others.

Republicans gathered enough signatures to send the bill for voters' consideration in the November 2026 election, pausing the new taxes and fees. Democrats considered repealing the bill this session, but after receiving legal advice, they opted to move the election date from November to the May 2026 election.

After days of delaying the vote, senators spent roughly two and a half hours debating the bill Monday, Feb. 23, before finally sending it to the House. It may be too late, though, because of steps required by May election deadlines.

SB 1599 is not scheduled to be heard in the House until Monday, March 2, and Republicans still possess the tools to continue to delay the vote (reading the bill in its entirety and walkout, for instance).

Republicans have also signaled that they will refer SB 1507, the partial federal tax disconnect bill, to the voters, which would make it more difficult for the Democrats to rebalance the budget. That means more debate all around.

Legislators have until March 8, the close of session, to rebalance the budget, making it a top priority. Any other bills just have to wait, including ones important to schools.

- Adrienne Anderson
OSBA government relations counsel