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Oregon Senate Democrats nix gas tax hike

06:13 PM PDT on Tuesday, August 26, 2008

Associated Press

SALEM, Ore. (AP) -- Oregon Senate Democrats have no intention of backing a gasoline tax increase next year, a top leader said Tuesday.

Oregon needs more revenue to improve its transportation system, but given current prices at the pump, it's unlikely the public would support an increase in the state gasoline tax, said Senate Majority Leader Richard Devlin.

"I do not have a single Senate member coming to me from either the Democratic or Republican side who believe that a gas tax is a viable option," the Tualatin lawmaker said.

Devlin made the comment at a news conference where he and other Senate Democrats discussed their legislative agenda for the 2009 session, which convenes Jan. 12.

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Among other things, they said they would work to make college more affordable, expand access to Head Start preschool programs and create more jobs by investing in health care and renewable energy industries.

The majority Democrats said a cigarette tax might be brought up in the 2009 session to help pay for health care, but noted that it wouldn't be nearly so large as the 84.5-cent-a-pack increase rejected by Oregon voters last year.

Lawmakers also might look for ways to raise more money from provider taxes on health care organizations as a way to pay for health insurance programs, they said.

A task force created by Gov. Ted Kulongoski is preparing a transportation package for the 2009 session that would include road and bridge improvements to keep up with wear-and-tear and increasing traffic congestion around Oregon.

The task force hasn't decided on what elements will be in the package -- or how it would be financed -- but Kulongoski's office has said a gas tax hike should at least be considered as a possible funding source.

With gasoline costing an average of $3.85 a gallon in Oregon this week, Devlin said Senate Democrats are more interested in looking at possible increases in vehicle fees than raising the current 24-cent-a-gallon state gasoline tax.

"I don't believe that there is any chance that the public would ever support a gas tax increase," he said.

Senate President Peter Courtney said Democrats are being cautious about proposing any new spending programs, given the shaky economy and the possibility that voters might approve potentially expensive measures on Oregon's Nov. 4 ballot.

Chief among them is Measure 61, which would requiring the state to lock up first-time drug and property crime offenders.

The state estimates Measure 61 would require $1 billion worth of prison construction to make room for as many as 6,300 additional inmates. It also would cost between $161 million and $274 million annually to operate those added prisons once the law was fully implemented, the state estimates.

If voters approve the measure, Courtney said, "that will turn 2009 into a corrections session," where lawmakers will have to focus mainly on expanding Oregon's prison system at the expense of education and other programs.

"You will dramatically change the tone of the next session and in terms of its ability to deal with other issues," the Salem Democrat said.

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