The “showcase” bus at Community Connection of Northeast Oregon in La Grande is used for parades and community events, like the “Spooky Trolley”. They’re buses dressed up like vintage trolleys, down to the wooden seats with decorative iron feet.
Prakruti Bhatt / OPB
As Oregon lawmakers debate a sweeping transportation funding package, a key question is how much should go to public transit.
Some Democrats are backing a proposal to gradually raise the Statewide Transportation Improvement Fund (STIF) payroll tax to keep buses running and expand service. But a competing House Republican proposal would eliminate transit funding entirely and redirect the tax revenue to roads and bridges.
Oregon’s 0.1% payroll tax for public transit hasn’t increased since it was enacted in 2017. In addition, pandemic-era federal grants for transit are ending, and inflation is pushing up operating costs.
“Unless we are able to increase transit funding, they’re going to have to make major cuts to service,” said Sen. Khanh Pham, D-Portland, who is sponsoring legislation that would phase in an increase of the STIF tax over eight years — ultimately reaching 0.5%.
“Public transit is a lifeline for communities,” she said. “It offers access to opportunity that Oregonians really appreciate and depend on,” adding that one-quarter of Oregonians don’t drive.
In Eastern Oregon, Kane Lester with Community Connection of Northeast Oregon said funding from STIF has been essential for transit service in rural Baker, Wallowa and Union counties.
“When STIF came into the picture, it was a huge game-changer,” Lester said. “It’s not just about convenience. The one dialysis clinic we have is in La Grande, and we have people from Enterprise and Baker who need to be able to access the facility.”
Patrick Hemann, Union County transit manager for the same agency, said people often underestimate the role of public transportation in rural communities.
La Grande Transit Hub, run by Community Connection of Northeast Oregon, is a stop for transit connecting to Pendleton, Wallowa County, Baker City, Boise, Walla Walla and Portland.
Prakruti Bhatt / OPB
“I don’t think people understand how many people rely on public transportation,” Hemann said. “Whether it’s low-income individuals, the elderly, or people who can’t drive — it’s how they get to the grocery store or to medical appointments. It’s so important to them. That is the only way they can get to the places they need to go to live their life.”
Hemann encourages lawmakers who don’t believe transit is a rural issue to come ride one of La Grande’s bus routes.
“Come do a loop with us,” he said.
Bus driver and youth pastor David Hite drives the Wallowa Link shuttle between La Grande and Joseph for Community Connection of Northeast Oregon. Hite likes to joke with his passengers, with a sign on board offering "free air guitars." He also tracks Bigfoot sightings, a passion of his.
Prakruti Bhatt / OPB
In Salem and Keizer, STIF money allowed the Cherriots transit system to add weekend service, helping people to get to jobs and other activities on the weekend.
“Since we’ve instituted weekend service, we’ve provided over 1.5 million rides on the weekends,” said Allan Pollock, general manager of Cherriots and vice president of the Oregon Transit Association, an industry group. “It’s really allowed us to help meet the needs of people who rely on transit.”
Pollock said Oregon faces unique challenges when it comes to transit funding.
“Nationally, the two primary sources for transit are the gas tax and sales tax — and we don’t have access to either in Oregon,” he said.
The Oregon gas tax is only available to transit in limited circumstances — when projects are directly on the right of way. Additionally, the highway trust fund is already insufficient for the backlog of Oregon highway maintenance projects.
Pollock said expanding STIF is the best option because “it allows us to build out an existing dedicated revenue source for transit instead of creating a new one.”
Roberta Altstadt, the director of communications for TriMet, the largest transit agency in the state, said this problem isn’t unique to Oregon.
“Transit agencies across the nation are looking for a solution to transit funding,” Altstadt said.
A Trimet 9 bus to Gresham drives past a bus-only lane in downtown Portland, Ore., June 29, 2024.
Anna Lueck / OPB
Last month, TriMet, which serves the Portland metro area, sounded the alarm saying that up to two-thirds of its routes would have to be cut over the next few years if additional funding doesn’t materialize.
“If the STIF payroll tax is not increased higher than the current proposal, we would need to start looking at cutting service in July of 2027,” she said. That would mean cutting 34 bus lines out of its current 78.
Because Oregon has no sales tax and limited property taxes, Rep. Mark Gamba said, the payroll tax is one of the few available tools to get funding to transit.
“In our infinite wisdom, we chose not to have a sales tax,” said Gamba, D-Milwaukie. “Then we capped property taxes with Measures 5 and 50. And then we added the kicker to make everything even worse.”
Gamba said his colleagues are open to other ideas, such as a one-time road use fee on new vehicle purchases. But for now, he said, increasing the STIF tax is the most straightforward option.
The proposed increase would cost an Oregon worker making the median salary about $16.66 more per month.
But House Republicans, including Rep. Shelly Boshart Davis of Albany, said that the current STIF payroll tax is too high. Their proposed transportation funding framework would redirect STIF from transit entirely.
“We want ODOT to get back to repairing and maintaining safe and reliable roads and bridges,” Boshart Davis said. “And stop using Oregonians as a bank when they run out of money.”
House Republicans argue that local governments should fund public transit services themselves.
Transit operators warn that without more funding, service cuts could ripple across the state. The transportation package is still under negotiation, and lawmakers are expected to make key decisions in the coming weeks.
