Broken Roads: Oregon’s $4.3 Billion Tax Hike and the Death of Bipartisanship

Senator Mike McLane is joined by Representative Shelly Boshart Davis and Senator Bruce Starr to break down the failed transportation process under Governor Tina Kotek, the $4.3 billion “band-aid” tax bill, and how Oregonians are now fighting back through a citizen referendum. Together, they expose how Oregon’s leadership abandoned 100 years of bipartisanship—and what it’ll take to rebuild trust and accountability.

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For decades, Oregon’s “way” of doing business—bipartisan, bicameral, and grounded in negotiation—was a source of state pride.

In 2025, that legacy collapsed.

Governor Tina Kotek and the Democratic supermajority forced through a $4.3 billion “transportation package” without a single Republican vote, ending more than a century of cooperation. On Oregon D.O.G.E. Episode 33, Senator Mike McLane, Representative Shelly Boshart Davis, and Senator Bruce Starr expose what really happened behind closed doors—and how Oregonians can fight back.

How Oregon’s Transportation Talks Fell Apart

Oregon’s roads are in crisis, but instead of bipartisan problem-solving, the Kotek administration locked Republicans out of the room.

Senator Starr explains that transportation funding has always required both parties. “We’ve been doing this together since 1900,” he says. “That ended under Kotek.”

When the 2025 session began, Republicans waited for a framework. Months passed—no plan, no negotiation, no leadership. Then, at the last minute, Democrats unveiled a “wish list” of taxes and spending, including:

  • Doubling the privilege tax on vehicle purchases
  • A new “luxury tax” on vehicles over $75,000
  • Doubling DMV fees
  • A 500% payroll tax increase for transit

The plan failed spectacularly. Even some Democrats refused to vote for it.

Governor Kotek’s Emergency Blame Game

After the collapse, Kotek called a special session—blaming Republicans for the gridlock, despite having supermajorities in both chambers.

“She literally said, ‘We don’t need Republicans, just their quorum,’” recalls Rep. Boshart Davis. “That’s not leadership. That’s arrogance.”

The governor threatened to halt snowplowing and maintenance unless lawmakers approved new taxes. Layoff notices went out to ODOT workers, spreading fear across rural Oregon.

Yet even after claiming “emergency,” Kotek still refused to sign the final bill—delaying the citizen referendum process and blocking Oregonians from having a voice.

The $4.3 Billion Band-Aid

The so-called “emergency” package raised gas taxes, doubled DMV fees, and increased payroll taxes—all without guaranteeing road improvements.

Senator Starr calls it a “band-aid,” not a solution. “It saved 400 jobs for now,” he says, “but it didn’t fix a single bridge.”

The bill even allowed ODOT to continue funding DEI programs, EV charging stations, and wildlife crossings—while ignoring the agency’s core mission of maintaining roads and bridges.

According to an internal ODOT review, nearly $800 million in the agency’s biennial budget goes to non-core projects.

Oregonians Push Back: The Referendum Effort

In response, a statewide petition is underway to overturn the new taxes and restore public accountability.

Senator Starr, Rep. Ed Diehl, and Jason Williams of the Oregon Taxpayer Association launched the No Tax Oregon and StopTheGasTax.com campaigns to collect 100,000 signatures by the end of the year.

Under Oregon’s Constitution, citizens can refer any law to a statewide vote—but only after the governor signs it. By delaying her signature until the last possible day, Kotek is shrinking the window for citizens to act.

Still, the momentum is growing. Thousands of Oregonians from all political backgrounds have already volunteered. Polling shows that 86% of voters want the right to vote on this package, and 95% of legislative testimony was opposed to the tax.

The Real Issue: Trust

Oregon’s budget has doubled in a decade, while public services have declined. Roads are worse, taxes higher, and trust lower.

Boshart Davis calls it what it is: “We’ve become a high-tax, low-service state.”

Oregonians don’t just want tax relief—they want honesty, efficiency, and respect for the process.

This referendum isn’t just about money; it’s about accountability. It’s about whether Oregonians will let government arrogance go unchecked—or remind their leaders who they work for.