Oregon Transit Association calls for 0.4% increase in Statewide Transportation Improvement Fund employee payroll tax

TriMet joins the Oregon Transit Association in appealing to Oregon legislators to increase funding for public transit in the upcoming 2025 transportation package. We appreciate the efforts of the Oregon Legislature to assemble a package that balances funding for all modes of transportation. However, the amount of funding for public transit currently being proposed is not enough to avoid service cuts that will leave tens of thousands of Oregonians stranded without the transportation they depend on, including in TriMet’s tri-county service district. 

TriMet provides bus, MAX light rail, WES commuter rail and LIFT paratransit services across 533 square miles of the state’s three most populous counties — Multnomah, Washington and Clackamas counties. Our transit service connects people with their community, while easing traffic congestion and reducing air pollution — making our region a better place to live.

The phased increase of 0.4% in the Statewide Transportation Improvement Fund (STIF) employee payroll tax over eight years sought by the Oregon Transit Association is necessary to avoid cuts to the transit service that is essential for TriMet riders — more than 67% of whom tell us they rely on our service to get them where they need to go. Under the current proposed 0.08% increase, TriMet would need to begin cutting service by July 1, 2027. We would need to cut 15% of service in 2027, with an additional 5% cut every two years after that, until our operating budget deficit is resolved.

Transit funding only a sliver of Oregon’s transportation investment

In 2017, the Oregon Legislature passed the first transportation package in state history that dedicated funding to improve transit service around the state, including providing free or discounted fare programs for students and Oregonians living on a low income. While welcome by transit agencies, public transportation receives just 8% as much state funding as the state highway fund receives each year in the face of rising costs and financial challenges. 

Like other public transit agencies in Oregon and across the nation, TriMet has seen operating costs skyrocket, mainly due to inflation. Our operating costs per vehicle have increased 53% from 2019 to 2024. TriMet has tripled our budget for safety and security in the last several years, to address community-wide public safety challenges that affect our transit system.

TriMet has been operating on reduced revenues since the COVID-19 pandemic and is currently facing a $74.4 million deficit for the fiscal year ahead, which begins July 1, 2025. As our deficit continues to grow year-to-year, we’re using our reserves to avoid reducing services, and we’re making meaningful cuts to our discretionary spending and implementing changes to right-size our budget. 

Federal COVID-19 relief funds provided a lifeline for public transit agencies thrust into turmoil brought by the global pandemic and grappling with systemic changes due to commute patterns and remote work. However, those one-time stimulus funds have now been depleted, and TriMet faces a fiscal cliff in 2031. We’re working with lawmakers now to identify additional state funding, before our deficit becomes unmanageable.

With a 0.4% phased increase in the STIF employee payroll tax, transit funding would still be less than the funding for other transportation modes. A  person making Oregon’s median income would pay $16.75 a month by 2032. In comparison, by that time the average driver would spend roughly $60 a month in gas taxes and vehicle fees under the Legislature’s proposed transportation package framework. 

Without that phased increase, TriMet will be forced to make drastic service cuts, including reducing frequency, hours of operation, and eliminating some bus lines altogether. Just considering our bus service alone, of our 78 current bus lines, TriMet would need to eliminate up to:

• 34 bus lines by July 2027,
• 7 more bus lines by July 2029,
• And 10 more bus lines by July 2031.

That means up to 51 of our current 78 bus lines would need to be eliminated by July 2031.

Maintaining — and increasing — public transit service is necessary to ensure that everyone has access to transportation regardless of ability or income. TriMet represents independence for the 35% of riders who are transit-dependent, meaning they do not own a personal vehicle or cannot/do not drive. We are a vital part of their lives, providing essential access to jobs, health care and daily needs. 

Public transit benefits everyone

Everyone benefits from TriMet, even if you don’t ride.  More people taking public transit means fewer cars on the road. Not only does our service reduce congestion, it reduces pollution and decreases the number of traffic collisions and fatalities. Our public transit also helps the economy. Every $1 invested in transit generates $5 for a local economy, according to research by the American Public Transportation Association. Directly, public transit helps support jobs by giving people access to work, education, stores, services and recreation, and by putting people to work. TriMet currently employs 3,600 people, and most of those positions — nearly 3,000 — are union jobs.

TriMet is grateful for the support of the lawmakers who penned a letter to legislative leadership on March 28, 2025, urging them to, “prioritize a phased increase to the Statewide Transportation Improvement Fund (STIF) payroll tax, to reach ½ of 1% by 2033 to ensure there are no cuts to local transit service.” According to that letter signed by the 10 legislators, 64% of the public comments received during the Joint Committee on Transportation’s 2024 community roadshow identified investments in transit as a top priority for the 2025 transportation package.

TriMet believes that every Oregonian deserves access to safe, reliable and affordable transportation options, and we urge legislators to increase funding for public transit in the upcoming 2025 transportation package.