Nice spin, but you are missing the point. ODOT and Oregon have plenty of revenue to pass around. Just because Elon Musk left DOGE, doesn't mean Oregon doesn't have an efficiency problem, next to public education, and OHP, DOT contracts are the 3rd largest wasters of tax dollars. Why should taxpayers give another cent to an administration unwilling to look in the mirror? Back to that "It's only 6 cents" or as you articulate $29 a year... in 1919 when Oregon first started taxing our gas, it was 1 cent.
$0.01 per gallon. That meant 4% of the pump price was tax.
Today 40 cents, or 40X, that's 200% above inflation.
Add the federal gas tax and we pay 15% of the price per gallon in taxes. That is almost 6 fold increase!
Back in 1919, gas taxes were a modest 4% of the pump price. Fast-forward to now, and it's a significantly heftier chunk—around 15% of what you’re paying at the pump in Oregon is taxes. Inflation doesn’t sugarcoat itself, and neither should you.
You’re absolutely right that the gas tax has increased dramatically since 1919, but we’re not building 1919 roads anymore.
A mile of road back then cost about $14,000 and handled a few dozen Model Ts a day. Today, that same mile, built to modern safety standards, with drainage, shoulders, seismic resilience, environmental compliance, and bike access, can run anywhere from $2 million to over $10 million, depending on location (rural vs urban, valley vs coastal or mountainous).
And yes, those costs are well above inflation. But it’s also not all paid up front. Oregon funds road projects through a mix of state highway funds, federal dollars, and bonding. Meaning some of what we build now gets paid off over 20 to 30 years. It’s not perfect. But it’s also not a simple cash-in, cash-out equation like it was a century ago.
That doesn’t mean we ignore waste or inefficiency. Believe me, we shouldn’t. But when we talk about how much tax is “too much,” we’ve got to weigh it against what we expect from the roads themselves: safety, durability, access, and reliability. That price tag is higher, but so are the stakes.
I agree with Ben Roche. A nice discussion on the pros and cons of adding to our taxes, but it does not explain the cause of why ODOT needs more money. Please explain the audit they failed and what’s been done to address those issues. Is ODOT overstaffed , especially with high, administrative personnel?
What we need is leadership, Oregon is sorely lacking. The waste in Oregon and confidence in management leads to the problems we see. You are correct, great leadership is invisible as all is working well. I am in favor of the gas tax increase, not sure on public transportation? We need to clarify where the fuel tax goes and stop the waste there. Great examples are the removing and replacing ADA ramps, even where there are no sidewalks. In Ashland ODOT just put in bike lanes and painted them green, it looked pretty good and was well done until they put flexible posts between the traffic and bike lanes, which meant the street sweepers can’t clean them. This is dangerous as thousands of pine cones filled the bike lanes as well as other items normally cleaned by a street sweeper. I am thinking maybe you should run for governor as your explanations and writing so clarifies the problem.
You’re absolutely right, leadership is about getting the basics right without wasting time or money. When the public sees ADA ramps to nowhere or bike lanes full of debris, it’s hard to believe anyone’s steering the ship. That kind of thing undermines confidence in the whole system.
I’m still weighing the gas tax issue, but I agree: if we want public support, we’ve got to be crystal clear about where the money goes and what problem we’re actually solving. As for running for governor, let’s just say I’m humbled by your confidence.
Bought gas in Bend two weeks ago $3.19 a gallon. Come to Tillamook $4.19 a gallon. With the state waste and the apparent greed of distributors it’s pretty tough for me to even consider more tax. And while you say six cents is not much of an increase I saw the scale of tax increase out to 2045. This is no small tax
Totally fair to point that out. A one-time bump might sound small, but when you stretch it over 20 years without addressing waste or price gaps like you saw in Bend vs. Tillamook, it adds up fast, and people feel it. That’s why trust and transparency have to come first.
Once again you do not mention the fraud, waste, and abuse in the department. ODOT can NOT account for millions of dollars. Why aren't you spouting on about that? We need to address that problem before any more money is given to ODOT or any taxes raised on Oregonians!
Hey Cryrus. Liked your take on gas tax special session. Maybe we should look to the past and what we have done with the road taxes. 200 plus millions on a study for the interstate bridge that failed, and a new study for millions more. Electric busses that cost twice as much, no refinerys and no plans, huge natural gas field going to waste by mist. Billion dollar a mile for a portland crime train. Maybe open up the forests for timber revenue, don't let the state steal our share of tillamook reforestation. No I am willing to use that gray mass between the ears and and rethink past mistakes that have gotten us into this mess. The people spoke during the regular session and stopped the steal. A vote NO on this bill is worth every penny of the .06 cents a gallon or $28.80 for the year the legislature wants to steal from us. I'd rather donate it to your continued representation. Thanx for the time.
Thanks, and I hear you. When people see hundreds of millions spent on projects that stall out or priorities that don’t reflect what rural communities actually need, it’s understandable they’re skeptical of adding another tax on top.
It raises a real question: is this about needing more money? Or about what we’ve done with the money we already had?
I haven’t decided how I’ll vote yet, but I agree, we have to look backward as we ask Oregonians to move forward. Appreciate your support, and the challenge to think clearly.
Actually, it is a scam. No taxes of any kind at any level are permitted under the constitution except for what is written in the 16th amendment. Period ! The legal citizens of Oregon should be polled for every tax. You spend before you cut back. Wrong. Everyone who budgets knows that's wrong. You need to demonstrate to us, the taxpayers, that you have MADE EVERY EFFORT to reduce UNNECESSARY SPENDING, before you come, hands out, begging for more.
Every year. There should be public 3rd party live time audits BEFORE you ask so we can see financially, what you all have been doing WITH OUR FUNDS. And NOTHING, absolutely nothing, should be spent on foreign invaders.
Hi Cyrus - Just found your Substack as a referral from ChatGPT. Hoping there is more Oregon-government- specific content. Like many other user comments, I want to understand if ODOT is grossly inefficient or not.
I am aligned to your perspective that, if we need to raise more money for roads, a gas tax and higher EV registration fees are the ways to do it because the mechanisms already exist and are broadly aligned with use. But I really want to know if ODOT priorities are wrong and cuts in other areas of the budget could painlessly be made to fund all the invisible work you describe. It also would be great to compare spending on roads to WA and ID to see how we compare. I assume there is an analysis like this somewhere. Would appreciate if you can share and summarize.
I agree gas vehicle owners pay more and yet the Electric vehicles are heavier on the roads and do more damage to them because of this reason. I think Oregon has a big government problem. it needs a small government solution. no Legislator needs a secretary that has a secretary that has a secretary. I applaud those that do not have any secretaries. Personally I think each city and county should get their share of the gas tax based on how much was made in that county or city not by the amount of registrations because Rural areas need more money for road upkeep. Also Tax the Charging stations so it seems more fair for the drivers, since we get taxed to fill up they should also.
Good point. Gas vehicle owners are carrying more of the load while EVs, which are heavier, contribute less and still wear down the roads. I also think rural areas deserve a funding formula that reflects actual use and cost, not just registrations. Would you support a model where charging stations are taxed and revenue is distributed based on where it’s collected? That might be a fairer way forward.
Good job of covering a range of issues with the current tax. Hybrids, EVs and even more efficient gas cars reduce gallons used, reducing revenue. This needs to be addressed. I agree the pay for use system is the fairest. Perhaps looking at how the tax dollars are allocated would get more dollars to where they are needed most.
You’re right: as vehicles get more efficient, the current system becomes less sustainable. If we want to stick with a use-based model, we have to be honest about who’s using the roads and whether they’re contributing their share.
You mentioned allocation. What changes would you want to see in how funds are distributed? Should rural usage or tourist impact carry more weight in the formula?
I don't have an understanding of how current allocation is determined, but would it be possible to determine county by county what percentage of maintenance falls on each district and allocate accordingly? I am a commissioner of a special road district funded by property tax. Not sure if this is the best solution for the state, but we are able to maintain our roads with the funding we receive.
If efficiency and accountability can fix the ODT issue, so be it, but in the meantime we need safe roads.
Nice spin, but you are missing the point. ODOT and Oregon have plenty of revenue to pass around. Just because Elon Musk left DOGE, doesn't mean Oregon doesn't have an efficiency problem, next to public education, and OHP, DOT contracts are the 3rd largest wasters of tax dollars. Why should taxpayers give another cent to an administration unwilling to look in the mirror? Back to that "It's only 6 cents" or as you articulate $29 a year... in 1919 when Oregon first started taxing our gas, it was 1 cent.
$0.01 per gallon. That meant 4% of the pump price was tax.
Today 40 cents, or 40X, that's 200% above inflation.
Add the federal gas tax and we pay 15% of the price per gallon in taxes. That is almost 6 fold increase!
Back in 1919, gas taxes were a modest 4% of the pump price. Fast-forward to now, and it's a significantly heftier chunk—around 15% of what you’re paying at the pump in Oregon is taxes. Inflation doesn’t sugarcoat itself, and neither should you.
You’re absolutely right that the gas tax has increased dramatically since 1919, but we’re not building 1919 roads anymore.
A mile of road back then cost about $14,000 and handled a few dozen Model Ts a day. Today, that same mile, built to modern safety standards, with drainage, shoulders, seismic resilience, environmental compliance, and bike access, can run anywhere from $2 million to over $10 million, depending on location (rural vs urban, valley vs coastal or mountainous).
And yes, those costs are well above inflation. But it’s also not all paid up front. Oregon funds road projects through a mix of state highway funds, federal dollars, and bonding. Meaning some of what we build now gets paid off over 20 to 30 years. It’s not perfect. But it’s also not a simple cash-in, cash-out equation like it was a century ago.
That doesn’t mean we ignore waste or inefficiency. Believe me, we shouldn’t. But when we talk about how much tax is “too much,” we’ve got to weigh it against what we expect from the roads themselves: safety, durability, access, and reliability. That price tag is higher, but so are the stakes.
I agree with Ben Roche. A nice discussion on the pros and cons of adding to our taxes, but it does not explain the cause of why ODOT needs more money. Please explain the audit they failed and what’s been done to address those issues. Is ODOT overstaffed , especially with high, administrative personnel?
ODOT’s had issues. Delays, overruns, questions about staffing…and those deserve real scrutiny. I’m looking into what’s been fixed and what hasn’t.
What we need is leadership, Oregon is sorely lacking. The waste in Oregon and confidence in management leads to the problems we see. You are correct, great leadership is invisible as all is working well. I am in favor of the gas tax increase, not sure on public transportation? We need to clarify where the fuel tax goes and stop the waste there. Great examples are the removing and replacing ADA ramps, even where there are no sidewalks. In Ashland ODOT just put in bike lanes and painted them green, it looked pretty good and was well done until they put flexible posts between the traffic and bike lanes, which meant the street sweepers can’t clean them. This is dangerous as thousands of pine cones filled the bike lanes as well as other items normally cleaned by a street sweeper. I am thinking maybe you should run for governor as your explanations and writing so clarifies the problem.
You’re absolutely right, leadership is about getting the basics right without wasting time or money. When the public sees ADA ramps to nowhere or bike lanes full of debris, it’s hard to believe anyone’s steering the ship. That kind of thing undermines confidence in the whole system.
I’m still weighing the gas tax issue, but I agree: if we want public support, we’ve got to be crystal clear about where the money goes and what problem we’re actually solving. As for running for governor, let’s just say I’m humbled by your confidence.
Thanks again for the kind words. It means a lot.
Bought gas in Bend two weeks ago $3.19 a gallon. Come to Tillamook $4.19 a gallon. With the state waste and the apparent greed of distributors it’s pretty tough for me to even consider more tax. And while you say six cents is not much of an increase I saw the scale of tax increase out to 2045. This is no small tax
Totally fair to point that out. A one-time bump might sound small, but when you stretch it over 20 years without addressing waste or price gaps like you saw in Bend vs. Tillamook, it adds up fast, and people feel it. That’s why trust and transparency have to come first.
Once again you do not mention the fraud, waste, and abuse in the department. ODOT can NOT account for millions of dollars. Why aren't you spouting on about that? We need to address that problem before any more money is given to ODOT or any taxes raised on Oregonians!
Hey Cryrus. Liked your take on gas tax special session. Maybe we should look to the past and what we have done with the road taxes. 200 plus millions on a study for the interstate bridge that failed, and a new study for millions more. Electric busses that cost twice as much, no refinerys and no plans, huge natural gas field going to waste by mist. Billion dollar a mile for a portland crime train. Maybe open up the forests for timber revenue, don't let the state steal our share of tillamook reforestation. No I am willing to use that gray mass between the ears and and rethink past mistakes that have gotten us into this mess. The people spoke during the regular session and stopped the steal. A vote NO on this bill is worth every penny of the .06 cents a gallon or $28.80 for the year the legislature wants to steal from us. I'd rather donate it to your continued representation. Thanx for the time.
Thanks, and I hear you. When people see hundreds of millions spent on projects that stall out or priorities that don’t reflect what rural communities actually need, it’s understandable they’re skeptical of adding another tax on top.
It raises a real question: is this about needing more money? Or about what we’ve done with the money we already had?
I haven’t decided how I’ll vote yet, but I agree, we have to look backward as we ask Oregonians to move forward. Appreciate your support, and the challenge to think clearly.
Actually, it is a scam. No taxes of any kind at any level are permitted under the constitution except for what is written in the 16th amendment. Period ! The legal citizens of Oregon should be polled for every tax. You spend before you cut back. Wrong. Everyone who budgets knows that's wrong. You need to demonstrate to us, the taxpayers, that you have MADE EVERY EFFORT to reduce UNNECESSARY SPENDING, before you come, hands out, begging for more.
Every year. There should be public 3rd party live time audits BEFORE you ask so we can see financially, what you all have been doing WITH OUR FUNDS. And NOTHING, absolutely nothing, should be spent on foreign invaders.
Hi Cyrus - Just found your Substack as a referral from ChatGPT. Hoping there is more Oregon-government- specific content. Like many other user comments, I want to understand if ODOT is grossly inefficient or not.
I am aligned to your perspective that, if we need to raise more money for roads, a gas tax and higher EV registration fees are the ways to do it because the mechanisms already exist and are broadly aligned with use. But I really want to know if ODOT priorities are wrong and cuts in other areas of the budget could painlessly be made to fund all the invisible work you describe. It also would be great to compare spending on roads to WA and ID to see how we compare. I assume there is an analysis like this somewhere. Would appreciate if you can share and summarize.
Thank you for taking the time to write. :)
I agree gas vehicle owners pay more and yet the Electric vehicles are heavier on the roads and do more damage to them because of this reason. I think Oregon has a big government problem. it needs a small government solution. no Legislator needs a secretary that has a secretary that has a secretary. I applaud those that do not have any secretaries. Personally I think each city and county should get their share of the gas tax based on how much was made in that county or city not by the amount of registrations because Rural areas need more money for road upkeep. Also Tax the Charging stations so it seems more fair for the drivers, since we get taxed to fill up they should also.
Good point. Gas vehicle owners are carrying more of the load while EVs, which are heavier, contribute less and still wear down the roads. I also think rural areas deserve a funding formula that reflects actual use and cost, not just registrations. Would you support a model where charging stations are taxed and revenue is distributed based on where it’s collected? That might be a fairer way forward.
that is a great idea. Charging for charging stations. Im not sure how we make EVs pay their fair share.
Good job of covering a range of issues with the current tax. Hybrids, EVs and even more efficient gas cars reduce gallons used, reducing revenue. This needs to be addressed. I agree the pay for use system is the fairest. Perhaps looking at how the tax dollars are allocated would get more dollars to where they are needed most.
You’re right: as vehicles get more efficient, the current system becomes less sustainable. If we want to stick with a use-based model, we have to be honest about who’s using the roads and whether they’re contributing their share.
You mentioned allocation. What changes would you want to see in how funds are distributed? Should rural usage or tourist impact carry more weight in the formula?
I think that’s a conversation worth having.
I don't have an understanding of how current allocation is determined, but would it be possible to determine county by county what percentage of maintenance falls on each district and allocate accordingly? I am a commissioner of a special road district funded by property tax. Not sure if this is the best solution for the state, but we are able to maintain our roads with the funding we receive.
If efficiency and accountability can fix the ODT issue, so be it, but in the meantime we need safe roads.