House Speaker Tina Kotek wants to divert half of Oregon’s estimated $1.4 billion “kicker” tax rebate toward transportation projects, including fully-funding a plan to widen and seismically retrofit a key bridge on Interstate 205 over the Willamette River.
Kotek introduced a bill Thursday that outlines her plan to retain half of the state’s record kicker rebate, instead of sending the money back to taxpayers in 2020.
The bill comes as Oregon political leaders from both parties had as recently as in December discussed either ending the constitutionally-mandated kicker tax rebate, which is triggered when tax revenues during a two-year budget period are more than 2 percent above economists’ forecast from the start of the cycle, or redirecting the money to a rainy day fund.
The legislation, House Bill 3440, calls for setting aside $260 million to widen and repair the Abernethy Bridge on I-205 between West Linn and Oregon City. Another $220 million from the kicker would go to the state’s Clean Diesel Engine Fund. A separate $220 million would go into a newly established Zero Emission Fund, which would help the state transition to zero-emission cars and trucks.
OPB News first reported on Kotek’s bill.
Danny Moran, Kotek’s communications director, said the Democratic leader had been discussing the concept in-house for “a couple of weeks.” Once the revenue forecast released Wednesday pointed to a larger-than-expected tax windfall, it set the stage for the bill.
The Abernethy Bridge, which carries more than 100,000 vehicles per day, was one of the major projects specifically named in the 2017 transportation packaged approved by the Legislature. Others include the controversial proposal to widen and cover sections of Interstate 5 through the Rose Quarter and a plan to widen Oregon 217 on Portland’s west side.
The main reason Kotek cited the I-205 project is because it is ready for construction, Moran said.
“It is an important safety issue and a transportation issue,” he said. But the speaker also sees diverting part of the kicker to finance bridge construction as a key way to avoid instituting tolling before the bridge is finished.
State transportation officials say the project is still in the design phase, but construction could begin as soon as winter 2020 if the financing comes through. Separately, the Portland region’s committee of elected officials that oversee transportation issues had requested $156 million from congress to make the bridge earthquake ready. It’s unclear how that request would be affected.
Regardless, Kotek’s bill faces an uncertain road. The legislation would require two-thirds of members in each Legislative chamber to support it, meaning Democrats would need to flip two Republican votes in the House and Senate for passaged
“I think conversations will start more today,” Moran said.
House Republicans on Thursday referred to a previous statement on kicker spending issued this week, saying the “constitutionally mandated check on excessive taxation must be honored and not raided for pet projects or to grow the bureaucracy in Salem.”
Kotek may face challenges from within her own leadership as well.
In a conference call with reporters just before noon on Thursday, Gov. Kate Brown said she thought it was important if the state decides to retain a portion of the kicker it must benefit all Oregon. “Paying down PERS does that,” she said, citing the unfunded public pension liability.
According to the bill, the newly created Zero Emission Fund would pay for “the development and construction of infrastructure for zero emission or low emission vehicles.”
Moran said the $220 million would help Oregon “support a statewide fast charging network and allow charging to be provided at public buildings across the state.” The money also could help the state’s transition to electric school and transit buses.
The state created the Clean Diesel Engine fund in 2007 and initially directed $1 million in general fund toward its intended effort of helping diesel users convert to less polluting combustion sources. Those funds were exhausted by 2009 and the state hasn’t funneled additional general fund dollars toward the initiative since then.
Oregon transportation officials are seeking federal approval to toll sections of I-205 near the Abernethy Bridge. The $260 million, if approved, would allow the expanded and retrofitted bridge to be in place before tolling arrives. The project is estimated to cost $286 million, but the state’s transportation commission already signed off, transportation spokesman Don Hamilton said, on $26 million for design and pre-construction work. Kotek’s bill is expected to fully fund the bridge.
Those aren’t the only changes potentially coming to I-205. The state’s 2017 transportation package also mentions a project to widen I-205 in and around the bridge.
That project, estimated at $221 million, is unfunded. The state wants to build a third lane in both directions of the freeway between Stafford Road and Oregon 43, as well as replace other bridges on the interstate not spanning the river.
-- Andrew Theen
503-294-4026
@andrewtheen
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