Oregon Public Broadcasting

Oregon lawmakers are moving ahead with a $300 million transportation package.

The bill is more modest than what Governor Ted Kulongoski proposed last fall, but the measure voted out of committee Friday is designed to appeal to tax-wary Republicans.  Salem Correspondent Chris Lehman reports.

The new money would come from a six-cent-per-gallon increase in Oregon’s gas tax and higher vehicle registration fees.  

Lawmakers say that would cost the average household with two cars an extra $120 a year.  The money would go towards at least three dozen highway projects across the state.

The Oregon Republican Party has been especially critical of the package, but some GOP lawmakers appear to be on board.

Republican Senator Bruce Starr says he supports the measure because of its potential to create jobs.

Bruce Starr:  “These are tax increases that don’t grow government.  These are tax increases that grow the private sector, that grow the economy, that lay the foundation from which we can come back as this economy recovers.”

The gas tax increase would not take effect until 2011 or until the state has two consecutive quarters of job increases, whichever comes first.

Environmental groups say the package doesn’t include enough money for transit and bicycle projects.