Oregon Transit Association urging legislature to take action to avoid cuts to transit services

The Oregon Transit Association (OTA) is urging 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, the OTA says transit agencies across Oregon may be forced to cut as much as 25 percent of their service in the next few years, with devastating impacts to the economy, environment and quality of life. 

According to the OTA, the current proposed transit funding in the statewide transportation package includes a 0.08 percent increase to the employee payroll tax rate that supports transit through the Statewide Transportation Improvement Fund (STIF), which would be a minimal increase to what is already a very low tax rate. The OTA says 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. 

OTA is calling on legislators to pass a phased 0.4 percent increase over eight years, which the association says would avert a disaster scenario for public transportation in Oregon. A survey of OTA members found nearly two-thirds (63 percent) of transit agencies face current or future budget deficits. 

Transit service is at risk 

OTA notes 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. 

According to the OTA, inflation has hit the public transportation sector hard, driving up the cost of providing transit service by about 50 percent 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 Lane Transit District CEO Jameson Auten.   

“Every Oregonian, regardless of age, ability or income, should be able to access affordable transportation,” said OTA President Derek Hofbauer. “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 

OTA notes investing in transit pays dividends for the economy, as 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.  

“Transit agencies need additional funding to meet the needs of seniors, veterans and people with disabilities,” said TriMet General Manager Sam Desue Jr. “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 Salem Area Mass Transit District General Manager Allan Pollock. “The consequences of inaction would be deep and widespread.”