News Release
For Immediate Release
April 17, 2025
Contact: Allan Pollock, Vice President, 503-910-3288, allan.pollock@cherriots.org
Oregon transit agencies face deep cuts without changes to transportation package
Oregon Transit Association and transit providers call for phased increase in transit funding to avoid leaving tens of thousands of Oregonians without viable transit options
The Oregon Transit Association (OTA) urges members of the Oregon Legislature to take action before transit agencies across the state are forced to cut services transit riders and communities rely on.
Without state funding that goes beyond what is currently included in the initial framework for the Oregon Legislature’s 2025 statewide transportation package, transit agencies across Oregon may be forced to cut as much as 25% of their service in the next few years, with devastating impacts to the economy, environment and quality of life.
The current proposed transit funding in the statewide transportation package includes just a 0.08% increase to the employee payroll tax rate that supports transit, through the Statewide Transportation Improvement Fund (STIF). This would be a minimal increase to what is already a very low tax rate. A person making $50,000 a year currently pays $4.17 a month. In comparison, the average driver spends roughly $40 a month in gas taxes and vehicle fees.
Instead, OTA is calling on legislators to pass a phased 0.4% increase over eight years. This gradual increase would avert a disaster scenario for public transportation in Oregon. A survey of OTA members found nearly two-thirds (63%) of transit agencies face current or future budget deficits.
Transit service is at risk
Transit has historically been a tiny piece of Oregon’s transportation budget. Many transit agencies already had narrow operating margins even before the COVID-19 pandemic. Additionally, the pandemic brought changes to work and travel patterns. Transit agencies have seen a big rise in remote work, and fare revenue is down from where it was six years ago.
Inflation has hit the public transportation sector hard, driving up the cost of providing transit service by about 50% from 2019 to 2024. Transit agencies have also invested in safety and security measures, in response to Oregon’s public safety challenges.
“The loss of fare revenue and the increase in operating costs mean transit agencies will be forced to reduce service, eliminate hundreds of jobs and cut off transit access for tens of thousands of Oregonians who depend on it,” said Jameson Auten, CEO of Lane Transit District.
Tens of thousands of Oregonians, living all over the state, depend on public transit every day. In some communities, the public bus is the school bus for many students. These students make up a portion of the roughly 25% of Oregonians who can’t or don’t drive. That quarter of the population also includes many seniors and people with disabilities, who rely on public transportation to get to the grocery store or pharmacy, to reach health care appointments, and more. For many of them, transit is an essential and often lifesaving service.
"Oregon’s public transportation sector also employs thousands,” said Julie Brown, Rogue Valley Transportation District General Manager. “Transit agencies offer family-wage jobs that are open to a wide range of people, including those without college degrees — breaking down barriers to employment and providing opportunities for advancement. Many of these jobs could be eliminated if transit is not adequately funded, causing further economic hardship.”
“Every Oregonian, regardless of age, ability or income, should be able to access affordable transportation,” said Derek Hofbauer, OTA President. “Increased transit funding will provide Oregonians better access to jobs, education, health care, and other essential services in their communities.
Investing in public transit pays off for Oregon
Investing in transit pays dividends for the economy. Every $1 invested in transit generates $5 for the local economy, according to research by the American Public Transportation Association. Transit fosters development and directly supports the economy by employing workers and giving people access to jobs, education, shopping, services and recreation. Higher transit use also means lower vehicle miles traveled, helping reduce congestion and traffic crashes, and benefiting the environment through reduced car emissions and cleaner air.
“Transit agencies need additional funding to meet the needs of seniors, veterans, and people with disabilities,” said Sam Desue Jr., TriMet General Manager. “For this growing population, access to transit is important to ensure residents are able to access health care, VA clinics, shopping, and other important destinations.”
“The Legislature has the opportunity in this legislative session to make a historic investment in transit service,” said Allan Pollock, Cherriots (Salem Area Mass Transit District) General Manager. “The consequences of inaction would be deep and widespread.”
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